To understand whether the accounting standard is working as intended, the International Accounting Standards Board (IASB) is undertaking a post-implementation review (PIR) of the impairment requirements in IFRS 9 Financial Instruments.
Companies have applied the expected loss model for some years now and it appears that it is generally working well, including during periods of high economic uncertainty, such as the COVID-19 pandemic. However, some issues have arisen in practice that could benefit from further guidance and clarification. Now is your chance to highlight your thoughts and concerns to the IASB.
What is the IASB seeking feedback on?
- the requirements provide useful information to users of financial statements about a company’s expected credit losses (ECL);
- there are fundamental problems with the requirements;
- the costs of applying the requirements are significantly greater than expected; and
- there are specific application questions.
What are its specific areas of interest?
|Area||IASB’s areas of interest|
|Recognising expected credit losses||
|Significant increase in credit risk (SICR)||
|Simplified approach to recognising ECL for trade receivables, contract assets and lease receivables||
|Disclosure requirements for credit risk in IFRS 7 Financial Instruments: Disclosures||
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