IFRS 9/IAS 39 — Fees and costs included in the ’10 per cent’ test for the purposes of derecognition

Date recorded:

IFRS 9 Financial Instruments and IAS 39 Financial Instruments: Recognition and Measurement — Fees and costs included in the ’10 per cent’ test for the purposes of derecognition — Finalising whether to recommend an annual improvement or issue an agenda decision — Agenda paper 2


The IC has concluded and reconfirmed in previous meetings (May and September 2016) that when applying IFRS9.B3.3.6 (IAS 39.AG62) in carrying out the '10 per cent' test, an entity includes only fees paid or received between the entity and the lender, and fees paid or received by either the entity or the lender on the other's behalf.

The purpose of this session was to ask the IC whether it intends to address the matter through an annual improvement or an agenda decision, the proposed wording for which was included in paragraph 6 of the agenda paper and Appendix A respectively.

Staff analysis and recommendation

The Staff recommended an annual improvement after assessing the matter against the agenda criteria and the annual improvements criteria. The Staff further recommended proposing an amendment with an effective date of 1 January 2019, with prospective application.


The IC approved the Staff’s recommendation.

A few members still preferred the issue of an agenda decision on grounds that it would provide more timely communication of the IC’s decision to the stakeholders.

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