The IASB discussed disclosure requirements related to an entity's write-off policy, stress testing, the credit quality of financial assets and vintage information. These disclosures were originally proposed in the November 2009 exposure draft Financial Instruments: Amortised Cost and Impairment (the original ED).
The Board tentatively decided by a majority of 10 votes to 5 that an entity should disclose its write-off policy, including discussion related to whether assets written off are still subject to enforcement activity and the nominal amount of assets written off, but for which the entity is still pursuing collection. Ten Board members supported this decision.
In addition, recoveries of previously written-off assets should be included as a separate line item in the reconciliation of changes in the allowance account. Fourteen Board members supported the decision.
The original ED proposed disclosure of stress testing information if an entity prepares such information for internal risk management purposes. The Board tentatively decided that this disclosure would not be required in the final standard. All Board members supported the decision.
Credit quality of assets
For financial assets measured at amortised cost the Board tentatively decided to require a reconciliation of changes in non-performing financial assets during the period for assets that are 90 days past due, but not included in the 'bad book'.
The Board tentatively decided to remove the definition of 'non-performing' proposed in the original ED because it is no longer needed for the proposed disclosures.
Fourteen Board members supported the decision to require the disclosure, and all the Board members supported the decision to remove the definition of 'non-performing'.
The original ED proposed disclosure of information showing the year of origination and the year of maturity (vintage information). The Board tentatively decided by a majority of 11 votes to 4 that this disclosure would not be required in the final standard. Eleven Board members supported the decision.
In March, the Board will continue to discuss issues from the original ED that are not integral to the supplementary document Financial Instruments: Impairment.