Draft Comment Letter: Risk Mitigation Accounting – Proposed amendments to IFRS 9 and IFRS 7

The UKEB today issued a Draft Comment Letter (DCL) for public consultation in response to the IASB’s Exposure Draft (ED) Risk Mitigation Accounting – Proposed amendments to IFRS 9 and IFRS 7.

The UKEB welcomes the IASB’s efforts to better reflect the economic effects of dynamic risk management, however, it is currently unclear whether the proposed Risk Mitigation Accounting (RMA) model, as drafted, will achieve this in practice. Further work is needed to assess whether the proposals can accommodate commonly applied UK practices without imposing undue cost or operational burden (including on smaller organisations), while still providing decision‑useful information. The UKEB has also identified practical and technical issues that may impact operability and robustness, underscoring the need for further fieldwork, clarification and targeted guidance before finalisation.

Stakeholders are invited to provide feedback either by answering the questions in the Invitation to Comment or by email to [email protected]. Comments are welcome until 28 June 2026.

For further detail on this project, see the UKEB project page.