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EFRAG draft comment letter on the request for information on the post-implementation review of IFRS 9

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

09 Nov 2021

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's request for information (RFI) seeking comments from stakeholders to identify whether the classification and measurement requirements in IFRS 9 'Financial Instruments' provide information that is useful to users of financial statements; whether there are requirements that are difficult to implement and may prevent the consistent implementation of the standard; and whether unexpected costs have arisen in connection with applying or enforcing the standard.

In its draft comment letter, EFRAG notes a number of issues that are considered to be prevalent in Europe and might deserve standard-setting activities. EFRAG believes the following issues should be of highest priority:

  • the application of the SPPI test to sustainable finance products,
  • the absence of recycling for FVOCI equity instruments,
  • the treatment of equity-type instruments, and
  • reporting on reverse factoring.

Comments on EFRAG's draft comment letter are requested by 14 January 2022. For more information, see the press release and the draft comment letter on the EFRAG website.

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