ASCG comments on the
Post-Implementation Review of
IFRS 9 (Part 2: Impairment)

The ASCG issued today its comment letter on the Post-Implementation Review of IFRS 9 (Part 2: Impairment) to the IASB.

In our view, the impairment requirements are principle-based and result in useful information.

Although some of the costs of introducing the new impairment model were high, the ongoing costs are estimated to be moderate. They appear justified in view of the more useful financial information.

Overall, the new impairment model is readily applicable in accounting practice, and any application issues and challenges have been largely resolved following its introduction and almost 5 years of application. Accordingly, the ASCG only expresses a few specific points of criticism and makes targeted suggestions for improvement for standard-setting.

The comment letter follows the corresponding consultation document (so-called RfI – Request for Information, we reported). Overall, the PiR on IFRS 9 consists of three parts. Further information on the completed first part (Classificiation and measurement) can be found on our project page.