IFRS 9 amendments take next hurdle in EU endorsement process

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image
  • European Union Image

10 Nov 2017

The European Financial Reporting Advisory Group (EFRAG) has issued positive endorsement advice on 'Prepayment Features with Negative Compensation (Amendments to IFRS 9)', confirming its preliminary assessment that the amendments meet all technical endorsement criteria of the IAS Regulation and are conducive to the European public good.

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 feedback on the draft endorsement advice, the final EFRAG endorsement advice now published, the ARC vote (expected in 2018), and final endorsement (aimed for in 2018).

The endorsement advice can be found here and a corresponding press release here (both links to the EFRAG website). Please click here for an updated EFRAG status report.

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.