IASB Updates: IFRS 9

This IASB Update highlights preliminary decisions of the International Accounting Standards Board (Board). Projects affected by these decisions can be found on the work plan. The Board’s final decisions on IFRS^® Standards, Amendments and IFRIC^® Interpretations are formally balloted as set out in the IFRS Foundation’s Due Process Handbook.  

The Board met remotely on 20–21 July 2021. 

In addition, the IASB held a remote joint meeting with the Financial Accounting Standards Board (FASB) on 23 July 2021. Read the joint Update below. 

Research and standard-setting 

Post-implementation Review of IFRS 9—Classification and Measurement (Agenda Paper 3) 

The Board met on 20 July 2021 to:  

• discuss feedback from outreach in the first phase of the post-implementation review of the classification and measurement requirements in IFRS 9 Financial Instruments. 
• decide on matters to examine further in the second phase. The Board will consult publicly on these matters through a request for information.  

The Board decided to examine further:  

1. the business model assessment for financial assets, specifically:  

1. the use of judgement in applying the assessment; and  

2. the reclassification of financial assets resulting from a change in business model;  

2. the contractual cash flow characteristics assessment for financial assets, specifically:  

3. applying the assessment in the light of market developments (including new product features such as financial assets with sustainability-linked features (discussed in Agenda Paper 3B)); and  

4. the requirements for investments in contractually linked instruments;  

3. the option for equity instruments to present fair value changes in other comprehensive income, specifically: 

5. how widely the presentation option is used and the types of instruments for which it is used; and 

6. the effect of the option on entities’ investment decisions and on the usefulness of information to users of financial statements;  

4. the presentation in other comprehensive income of changes in fair value resulting from changes in own credit risk for financial liabilities designated at fair value through profit or loss; 

5. modifications to contractual cash flows, specifically: 

7. the differences in drafting between the requirements for modifications for financial assets and financial liabilities; and 

8. determining when a modification results in derecognition; and  

6. the transition to IFRS 9, specifically: 

9. the effects of the transition reliefs provided; and  

10. the balance between reducing costs for preparers of financial statements and providing useful information to users of financial statements.  

All 12 Board members agreed with this decision.  
 

Next step 

The Board expects to approve the publication of, and set a comment period for, the request for information at a future meeting. The Board expects that the request for information will be published around the end of September 2021. 

> IFRS 9 Financial Instruments in South Africa Updated 2020 2021 | IFRS Training 

Source: ifrs.org