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Amendments to the Classification and Measurement of Financial Instruments

Project Type:

Endorsement

Status:

Active

Milestone:

Final Documents

Effective Date: 1 January 2026

On 30 May 2024 the International Accounting Standards Board (IASB) published Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments. The Amendments will be effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

Background

The Amendments are a response to feedback received by the IASB in relation to:

  • The potential effect on financial liabilities from a Tentative Agenda Decision made by the IFRS Interpretations Committee regarding the treatment of cash received by electronic transfer as settlement for a financial asset.
  • The Post-implementation Review of IFRS 9 – Classification and Measurement (PIR). The UKEB’s response to the PIR was submitted in January 2022. Further details on the UKEB’s influencing project on the PIR can be found on the project webpage.

In March 2023 the IASB published the exposure draft (ED) Amendments to the Classification and Measurement of Financial Instruments. The UKEB’s response to the ED was submitted in July 2023. Further details on the UKEB’s influencing project on this ED can be found on the project webpage.

Main requirements in the Amendments to the Classification and Measurement of Financial Instruments

The Amendments provide further clarification and requirements for:

  • The recognition and derecognition criteria for financial assets and liabilities.
  • The classification requirements for financial assets, particularly those containing contingent features (such as ESG-linked targets), non-recourse features or contractually linked instruments.
  • Disclosures related to the amendments to the classification requirements, and also for investments in equity instruments designated at fair value through other comprehensive income.

Outreach

The UKEB outreach plan included discussions with stakeholders and public consultation on the UKEB’s Draft Endorsement Assessment Criteria (DECA).

Draft Endorsement Criteria Assessment

On 26 September 2024, the UKEB published its draft Endorsement Criteria Assessment of the Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments. The public consultation period closed on 10 January 2025.  

Thank you to all stakeholders that provided feedback.

The relevant documents are available at the end of this page:

  • Draft Endorsement Criteria Assessment.
  • Responses from stakeholders.    

UKEB Meetings

Meeting(s) related to the endorsement of the Amendments are as follows:

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