08/11/2021 - EFRAG’s Draft Comment Letter in response to the IASB Request for Information on the Post-implementation Review of IFRS 9 - Classification and Measurement
EFRAG has published its Draft Comment Letter (DCL) in response to the IASB request for information as a part of the Post-implementation Review (‘PIR’) of the classification and measurement requirements of IFRS 9 Financial Instruments and seeks constituents' views on how the IFRS 9 is working in practice.
Comments on the Draft Comment Letter are requested by 14 January 2022.The IASB has published a Request for Information ('RFI') on the Post-implementation Review of IFRS 9 Financial Instruments - Classification and Measurement on 30 September 2021. With the aim of providing input to this RFI, EFRAG is publishing its Draft Comment Letter on the application of this Standard.
The RFI is seeking feedback on the classification and measurement requirements in IFRS 9, including the related disclosure requirements. The impairment requirements, hedge accounting and related transition requirements do not form part of this PIR and will be reviewed by the IASB at a later stage.
In its DCL EFRAG notes a number of issues that are prevalent in Europe and might deserve standard-setting activities. Those with highest priorities are: the application of the SPPI test to sustainable finance products, the absence of recycling for FVOCI equity instruments, the treatment of equity-type instruments, and reporting on reverse factoring.
EFRAG wants to know the issues constituents have encountered when applying IFRS 9. This may include whether the requirements are working as intended, whether they can be applied consistently, and whether they have resulted in unexpected significant effects.
EFRAG's Draft Comment Letter can be found here.
Comments are welcome by 14 January 2022.
