UK Endorsement Board Outreach – IFRS 9 Post Implementation Review and ED Subsidiaries Without Public Accountability: Disclosures

Date: 19 November 2021

The UK Endorsement Board (UKEB) invites stakeholders to attend a series of upcoming roundtables as it develops its response to the following IASB consultations:

Subsidiaries Without Public Accountability: Disclosure Preparer roundtable - Wednesday 24 November at 2:00pm-3:00pm

PIR IFRS 9 Classification & Measurement Users roundtable - Thursday 25 November at 10:00am-11:00am

Subsidiaries Without Public Accountability: Disclosure Users roundtable - Friday 26 November at 10:00am-11:00am

The UKEB would like to hear views from as many UK stakeholders as possible to ensure those views are reflected in its response to the IASB. 

Please confirm your attendance to, specifying which session you would like to attend. Calendar invitations will be sent to registered participants. 

Further information on both consultations can be found below. 

Post Implementation Review – IFRS 9 Financial Instruments, Classification & Measurement

The IASB is undertaking a post implementation review (PIR) of IFRS 9 Financial Instruments, starting with a review of the classification and measurement requirements. Separate reviews of the impairment (Expected Credit Loss) and hedge accounting requirements of IFRS 9 are expected in 2022. The PIR seeks to determine whether the objectives of standard setting for IFRS 9 were met, whether the standard can be applied consistently, whether the information provided by IFRS 9 classification and measurement requirements is useful to users of financial statements, and whether the costs of applying the requirements are as expected.

Respondents to the RFI are asked to consider whether the Classification and Measurement requirements of IFRS 9 enable entities to align the measurement of financial assets with the cashflow characteristics of the assets and how the entity expects to manage them, and whether this provides useful information to the users of financial statements about the amount, timing and uncertainty of future cashflows.  IASB has included spotlight topics in the RFI which include the reclassification of assets under the business model test, the treatment of financial instruments with sustainability-linked features, the requirements relating to contractually linked instruments and the recycling of gains and losses on equity instruments    We welcome your thoughts on all topics in the RFI.

ED/20212/7 Subsidiaries Without Public Accountability: Disclosures

This ED seeks to develop an accounting standard that would permit eligible subsidiaries to apply reduced disclosure requirements as long as the subsidiary applies the recognition, measurement and presentation requirements in IFRS Standards. The ED asked respondents for views on the scope, content (the proposed reduced disclosure requirements) and the interaction with IFRS 1 First-time Adoption of International Financial Reporting Standards among others.

In the UK, FRS 101 Reduced Disclosure Framework sets out an optional reduced disclosure framework which addresses the financial reporting requirements and disclosure exemptions for the individual financial statements of subsidiaries and ultimate parents that otherwise apply the recognition, measurement and disclosure requirements of UK-adopted international accounting standards (UK-IAS). FRS 101 is widely used in the UK.

For this roundtable the UKEB will share pre-reading materials in advance including the questions on which it would will to hear your views on. The UKEB has also identified the key differences between the ED and FRS 101 which would lead to a significant difference in reporting if the same entity were to produce parallel accounts in accordance with the two Standards and would like to test these differences during the roundtable. The UKEB will share these differences in advance of the roundtable. The UKEB Secretariat has published a video exploring the ED which can be accessed here.