The International Accounting Standards Board (IASB) today announced its intention to create a transition resource group that will focus on the upcoming new requirements for impairment of financial instruments. The IASB is seeking suitable candidates for membership of the IFRS Transition Resource Group for Impairment of Financial Instruments (ITG) and has issued a call for nominations.
The ITG will provide a discussion forum to support stakeholders on implementation issues that may arise as a result of the new impairment requirements under IFRS 9 Financial Instruments (2014), which will be issued in 2014.
The new expected credit loss model for the impairment of financial instruments under IFRS 9 will represent a fundamental change to current practice. The changes will have significant implications from an implementation as well as a systems perspective, particularly in the financial services sector.
In view of the magnitude of these changes, 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.
The ITG will solicit, analyse and discuss common stakeholder issues arising from implementation of the new requirements that could possibly create diversity in practice. The ITG will also provide information that will help the IASB determine what, if any, action will be needed to resolve such diversity. The ITG itself will not issue guidance.
The IASB is seeking nominations to form a group to consist of 14-18 specialists representing financial statement preparers, auditors and related groups from a wide spectrum of geographical locations. The ITG will meet periodically (about 2-3 times a year) in public and will be chaired by an IASB member.
Candidates should be capable of making a positive contribution to the ITG by having expertise, skills or practical knowledge relating to expected credit loss model for impairment of financial assets as well as knowledge about accounting for financial instruments under IFRS. Candidates should be open-minded towards different perspectives and have the ability to participate in a free exchange of ideas.
The deadline for applications for membership of the ITG is Monday 14 July 2014. For further information, please view the ITG Call for Nominations page.