IASB issues amendments to IFRS 9

May 30, 2024

Also, IFAC pays tribute to AICPA & CIMA leader Barry Melancon.

The IASB issued amendments to IFRS 9, Financial Instruments, to make the requirements of the standard more understandable and consistent, a news release said. The board also introduced additional disclosure requirements to enhance transparency for investors.

These amendments respond to stakeholder concerns around clarity in some areas of the requirements and address new issues that have emerged since IFRS 9 was issued.

According to the release, these areas include:

Clarifying the classification of financial assets with environmental, social, and corporate governance (ESG) and similar features: "ESG-linked features in loans could affect whether the loans are measured at amortised cost or fair value. To resolve any potential diversity in practice, the amendments clarify how the contractual cash flows on such loans should be assessed."

Settlement of liabilities through electronic payment systems: "The amendments clarify the date on which a financial asset or financial liability is derecognised. The IASB also decided to develop an accounting policy option to allow a company to derecognise a financial liability before it delivers cash on the settlement date if specified criteria are met."

The amendments can be downloaded by those with an IFRS Digital subscription and are effective for annual reporting periods beginning on or after 1 January 2026.

[Financial Management Magazine]