EFRAG draft comment letter on the request for information on the post-implementation review of IFRS 9 (impairment)
19 Jul 2023
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 impairment 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 that the impairment requirements in IFRS 9 generally work as intended.
Nevertheless, EFRAG identifies some issues of application or diversity in practice with different levels of priority that should be further considered by the IASB in the context of this project. These include:
- cash shortfalls used to measure expected credit losses and
- the interaction between modification, impairment, and derecognition requirements.
Comments on EFRAG's draft comment letter are requested by 13 September 2023. For more information, see the press release and the draft comment letter on the EFRAG website.
