Global Standards for the world economy

Thursday 27 April 2017

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IFRS 9: Financial Instruments

IASB meeting summaries and observer notes

 IASB 15 October 2009



The Board and the US Financial Accounting Standards Board (FASB) are seeking to improve and simplify the reporting for financial instruments. IAS 39 Financial Instruments: Recognition and Measurement sets out the requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items.

The Board is replacing IAS 39 in three phases.

  • Phase 1: Classification and measurement. The Board published an exposure draft in July 2009. The Board has been considering the comments it received on the proposals and expects to publish a final IFRS in November 2009.
  • Phase 2: Impairment (methodology). The Board plans to publish an exposure draft proposing a change to the incurred loss impairment methodology in IAS 39 in October 2009.
  • Phase 3: Hedging. The Board expects to publish an exposure draft in December 2009.

The relevant part of IAS 39 will be replaced as each phase is completed.

At this meeting the Board continued to discuss all three phases of the project.

Impairment - phase 2

Drafting of ED and comment period

The Board tentatively decided to proceed with the drafting of an ED to replace sections of IAS 39 relating to impairment. The ED will be drafted as a stand-alone document to be published later this month (October 2009).

The Board tentatively decided to establish a comment period of eight months for the ED with the objective of issuing a final standard by the end of 2010.


Date: 10/15/2009