Amendments to IFRS 9 to aid implementation
The IASB has proposed targeted amendments to IFRS 9, the financial instruments Standard. These changes would allow companies to measure certain prepayable financial assets with negative compensation at amortised cost.
The IASB introduced the amendments in response to feedback from the IFRS Interpretations Committee. Their goal is to improve the usefulness of information about these financial assets, as required under IFRS 9.
According to the IASB chair, the changes directly address concerns about accounting for prepayment options. They also reflect the Board’s broader commitment to support the implementation of major new Standards.
The Exposure Draft, Prepayment Features with Negative Compensation (Proposed amendments to IFRS 9), is available online. Stakeholders can submit comments until 24 May 2017.
Source: IASB Website
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IFRS 9: Loan loss accounting and financial stability – IFRS Foundation
International Accounting Standards Board Members Sue Lloyd, Stephen Cooper and Darrel Scott discuss IFRS 9, the financial instruments Standard that comes into force from 1 January 2018.
EFRAG submits endorsement advice on IAS 40 Amendments
EFRAG’S endorsement advice on transfers of investment property (AMENDMENTS TO IAS 40)
EFRAG has completed its due process regarding Transfers of Investment Property (Amendments to IAS 40) and has submitted its Endorsement Advice Letter to the European Commission.
In December 2016, the IASB issued Transfers of Investment Property (Amendments to IAS 40) (the ‘Amendments’) to clarify whether an entity should transfer property under construction of development to, or from, investment property when there is a change in the use of such property which is supported by evidence other than specifically listed in paragraph 57 of IAS 40 Investment Property.
The Amendments become effective for annual periods beginning on or after 1 January 2018, with earlier application permitted. EFRAG has submitted its Endorsement Advice relating to the Amendments for use in the European Union and European Economic Area. EFRAG assesses that the Amendments meet all technical endorsement criteria of the IAS Regulation and are conducive to the European public good. It therefore recommends their endorsement. EFRAG’s recommendation is explained in the letter to the European Commission and the accompanying appendices.
The Endorsement Advice Letter to the European Commission can be found here.
EFRAG has also updated its Endorsement Status Report, which can be downloaded here on EFRAG’s web page.