IFRS Transition Resource Group for Impairment of Financial Instruments (ITG)
The IFRS Transition Resource Group for Impairment of Financial Instruments (ITG) is a discussion forum to provide support for stakeholders on implementation issues arising on the new impairment requirements following the issue of IFRS 9 Financial Instruments (2014).
The IASB issued the completed IFRS 9 in July 2014, which incorporates the new requirements for impairment of financial instruments.
The new expected credit loss model for impairment of financial instruments represents a fundamental change to current practice and will therefore have significant implications from an implementation as well as a systems perspective, particularly in the financial services sector. In view of the magnitude of the change, the IASB believes that having a discussion forum, such as the ITG, to provide support for stakeholders post publication will enhance robust and consistent implementation.
Purpose of the ITG
The ITG will discuss questions from stakeholders about the new impairment requirements. Overall, the purpose of the ITG is to:
- solicit, analyse and discuss stakeholder issues arising from implementation of the new impairment requirements;
- inform the IASB about those implementation issues, which will help the IASB determine what, if any, action will be needed to address those issues; and
- provide a public forum for stakeholders to learn about the new impairment requirements from others involved with implementation.
Activities to date and future plans
In addition to one introductory conference call in 2014, the ITG met three times during 2015 and discussed potential issues arising from the implementation of the new impairment requirements in IFRS 9 (2014). Only one issue was raised with the IASB as a result of those meetings. The IASB noted the issue but observed that the requirements of IFRS 9 were clear and consequently no further action was considered necessary.
Meeting agendas, supporting papers and meeting notes can be found on the ITG meetings page.
No meetings of the ITG have been planned for 2016. However, the group will remain in place and stakeholders may continue to submit potential implementation issues by following the submission guidelines. Further meetings will be convened if circumstances warrant it.
The ITG will periodically meet in public to discuss potential issues arising from the implementation of the new impairment requirements in IFRS 9 (2014). Issues may be submitted by any stakeholder based on the issue submission guidelines.
IASB staff will evaluate each submission and prioritise the issues for discussion at an ITG meeting. Meeting agenda and supporting papers will be posted on the Meetings page in advance of each meeting.
During the meetings, the ITG members will share their views on the issues. The ITG will not issue guidance. The IASB will determine what action, if any, will be taken on each issue.