IASB consultation re. Post-Implementation Review on IFRS 9 (section classification & measurement)

Today, the IASB has published a consultation document (“Request for Information”) as next step of its Post-Implementation Review of IFRS 9. This consultation effectively commences the second phase of this PIR now involving the public interest. As a first phase of this PIR, the IASB had performed Outreach and Research – primarily by consulting the IFRS foundations’ bodies – with the aim of identifying the most urgent issues and questions. These issues are the basis for the public consultation that is now under way.

This PIR of IFRS 9 comprises the requirements on classification and measurement only. The issues for discussion and further examination are the following:

1. the classification and measurement concept in general;
2. the business model assessment for financial assets, specifically the use of judgement and changes in business model;
3. the contractual cash flow characteristics assessment for financial assets, specifically in the light of market developments (eg. sustainability-linked features and contractually linked instruments);
4. the option for equity instruments to present fair value changes in OCI, specifically how widely the option is used;
5. the presentation in OCI of changes in fair value resulting from changes in own credit risk for financial liabilities designated at fair value through profit or loss;
6. modifications to contractual cash flows, specifically applying the modification/derecognition requirements for financial assets and financial liabilities;
7. amortised cost and effective interest method, specifically when interest rates are subject to conditions;
8. the transition to IFRS 9, specifically the effects of transition reliefs;
9. other matters.

On the remaining requirements on impairment and hedge accounting, the IASB intend to consult by a separate PIR at a later stage.

The IASB is now asking for feedback on this PIR by 28 January 2022.

Please find more information on this PIR and the background on the ASCG’s respective project website (in German only).