This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Post-implementation review of IFRS 9

Date recorded:

Project planning (Agenda Paper 3)

In October 2020, the Board decided to begin the post-implementation review (PIR) of the IFRS 9 classification and measurement requirements. This paper sets out the plan for Phase 1 of this project.

The IFRS 9 classification and measurement requirements were effective for annual reporting periods beginning on or after 1 January 2018. The objective of the classification and measurement phase of the IFRS 9 project was to address application issues in IAS 39 and improve the ability of users to understand information about amounts, timings and uncertainty of future cash flows. The objective of the PIR is to assess whether the requirements have improved financial reporting and identify lessons learned that will help the Board in its efforts to continuously improve its standard-setting.

The PIR has two phases: The first phase is involves identification and assessment of matters to be examined, which is then the subject of public consultation in the form of a Request for Information (RFI). In the second phase the Board considers the comments received and sets out steps it plans to take, if any, as a result of the review.

The staff expect the PIR will take around 18-24 months to complete. During Phase 1, Board members and staff will speak to preparers, auditors, investors, regulators and standard-setters in order to identify issues. The Board will perform this part of phase 1 in the first half of 2021 and will issue a RFI in the third quarter of 2021.

The staff asked the Board if they have any comments on the PIR project objectives, Phase 1 activities or Phase 1 timeline.

Board discussion

Board members touched on the purpose of the PIR and what specifically could be learned from this PIR. The Vice Chair said that she would be especially interested in whether the Standard is working as intended, for example, there is evidence that many reclassifications happen with regard to the business model. The Board had not envisaged that frequency and that is something to explore in the PIR. Another Board member suggested to look at disclosures as well, even though this PIR is titled ‘Classification and Measurement’. One Board member asked whether, if the need for standard-setting is identified, the Board could move directly to a standard-setting project, without doing research first. The staff confirmed this and said that there would still be a small research phase at the beginning of each standard-setting project, if it does not come out of a research project.

No decisions were made.

Related Topics

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.