Amortised Cost Measurement

The IASB met on 25 February 2026 to continue deliberating issues within the scope of the project.

What constitutes a ‘modification’ of financial instruments (Agenda Paper 11A)

The IASB discussed whether it should clarify what constitutes ‘modification’ of a financial instrument for the purpose of applying IFRS 9 Financial Instruments.

The IASB tentatively decided to clarify that a modification of a financial asset or a financial liability constitutes a change in contractual terms that changes the nature, timing, amounts or uncertainty of contractual cash flows.

All 13 IASB members agreed with this decision.

Determining whether modification results in derecognition (Agenda Paper 11B)

The IASB discussed whether it should clarify requirements in IFRS 9 for determining whether a modification of a financial asset or a financial liability results in derecognition.

The IASB tentatively decided:

1. to clarify that a substantial modification of a financial asset, or a part of a financial asset, is accounted for as derecognition of the original financial asset and recognition of a new financial asset; and
2. to require that an entity apply a principles-based approach in assessing whether a modification of a financial asset or a financial liability is substantial and results in derecognition.

All 13 IASB members agreed with this decision.