Request for Information 2023/05/30 Post Implementation Review of IFRS 9 - Impairment
Project Type:
Post-implementation review
Status:
Completed
Milestone:
Project Closure
Completed Date: 20 October 2023
In May 2023, the IASB published a Request for Information: Post-implementation Review of IFRS 9 Financial Instruments—Impairment. Our response to the IASB was submitted on 26 September 2023.
Background
IFRS 9 sets out the requirements on how an entity classifies and measures financial assets, financial liabilities and some contracts to buy or sell non-financial items. The standard was effective for annual periods commencing on or after 1 January 2018. Insurers were allowed to defer the effective date until 1 January 2023, if certain conditions were met.
Under its due process the IASB is required to conduct a post implementation review of the all new IFRS standards and major amendments (for further information on the IASB post-implementation reviews refer to the IFRS website). The objective of a post-implementation review is to assess whether the effects of applying the new requirements on users of financial statements, preparers, auditors and regulators are as intended when the IASB developed those new requirements.
The IASB divided its overall post-implementation review of IFRS 9 into three phases:
- Classification and Measurement – The IASB published a Request for Information Post-implementation Review of IFRS 9 - Classification and Measurement in September 2021.
The UKEB’s response to the IASB’s Request for Information was submitted on 28 January 2022. For more information see Post Implementation Review of IFRS 9 - Classification and Measurement .
In December 2022, the IASB concluded this stage of the Post-implementation Review. As a result, the IASB published a Project Report and Feedback Statement. In addition, in response to stakeholder feedback the IASB proposed amendments to IFRS 9. For UKEB work on the IASB’s proposed amendments see Amendments to the Classification and Measurement of Financial Instruments.
- Impairment - The information on this page focuses on the post-implementation review of IFRS 9 impairment requirements.
- Hedge Accounting - A post-implementation review addressing IFRS 9 hedge accounting is expected at a future date.
The IASB post-implementation review of IFRS 9 also considers the related disclosure requirements in IFRS 7 Financial Instruments: Disclosures, in each phase of the project.
For further information on the IASB post-implementation reviews refer to the IFRS website.
Outreach
Our outreach on this project included discussions with stakeholders and public consultation on our draft comment letter.
Final Comment Letter
The UKEB Final Comment Letter identifies no fatal flaws but sets out areas of potential enhancement to the IFRS 9 impairment requirements.
Timeline
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4
Project Closure
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The UKEB published its Due Process Compliance Statement on 20 October 2023.
Due Process Compliance Statement - Post Implementation Review of IFRS 9 - Impairment
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3
Final Documents
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The UKEB published its Final Comment Letter and Feedback Statement on 26 September 2023.
Final Comment Letter - Post Implementation Review of IFRS 9 - Impairment
Feedback Statement - Post Implementation Review of IFRS 9 - Impairment
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2
Consultation
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The UKEB published its Draft Comment Letter on 8 August 2023 for public consultation.
Draft Comment Letter - Post Implementation Review of IFRS 9 - Impairment
Invitation to Comment
Invitation to Comment - Post Implementation Review of IFRS 9 - Impairment
Invitation to Comment - Your details - Post Implementation Review of IFRS 9 - Impairment
The consultation closed on 8 September 2023.
Stakeholder Responses
The UKEB received the responses below from stakeholders on its Draft Comment Letter.
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1
Initiation
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The UKEB published its Project Initiation Plan on 6 June 2023.
Project Initiation Plan - Post Implementation Review of IFRS 9 - Impairment