IFRS Adviser Alert – Amendments to IFRS 9 and IFRS 7

Amendments to the Classification and Measurement of Financial Instruments

Executive Summary

The International Accounting Standards Board (IASB) has issued amendments to IFRS 9 Financial Instruments, and some amendments have also been made to IFRS 7 Financial Instruments: Disclosures, following a post-implementation review (PIR) of IFRS 9. The amendments also include consequential changes to IFRS 19 Subsidiaries without Public Accountability: Disclosures to reflect the amendments made to IFRS 7.

Background

The IASB’s PIR of the classification and measurement requirements in IFRS 9 and the related requirements in IFRS 7 concluded that overall, the requirements set out in these two standards can be applied consistently and they also provide useful information to users of the financial statements. However, the PIR process did reveal some areas that could be improved, and they included:

To address these matters and to improve clarity and understanding, the IASB has issued some amendments to the classification and measurement of financial instruments to promote consistency.