EFRAG suggests quick endorsement of IFRS 9 amendments
18 Oct 2017
The European Financial Reporting Advisory Group (EFRAG) has issued positive draft endorsement advice on 'Prepayment Features with Negative Compensation (Amendments to IFRS 9)', not even a week after the amendments were issued by the IASB.
The amendments address the concerns about how IFRS 9 Financial Instruments classifies particular prepayable financial assets. They become effective for annual periods beginning on or after 1 January 2019, with earlier application permitted.
In order to allow European preparers enough time to implement the amendments before their effective date and possibly together with IFRS 9 (which has an effective date of 1 January 2018), the EFRAG moved uncommonly fast in order to allow sufficient time for (i) feedback, (ii) final EFRAG endorsement advice (expected in the fourth quarter of 2017), (iii) the ARC vote (expected in 2018), and (iv) final endorsement (aimed for in 2018).
EFRAG's overall preliminary assessment is that the amendments satisfy the criteria for endorsement for use in the EU and therefore recommends its endorsement. The draft endorsement advice can be found here and the invitation to comment here (both links to the EFRAG website). Comments on the draft endorsement advice are expected by 2 November 2017.
Please click here for an updated EFRAG status report.
