The Interpretations Committee received a request to clarify the requirements in IAS 39 and IFRS 9 relating to which fees and costs should be included in the ‘10 per cent’ test for the purpose of derecognition of a financial liability.
The Interpretations Committee observed the following:
On the basis of these observations, the Interpretations Committee noted that, when applying paragraphs AG62 of IAS 39 and B3.3.6 of IFRS 9 in carrying out the ‘10 per cent’ test, an entity includes only fees paid or received between the lender and the borrower or fees paid by, or on behalf of, the lender or the borrower.
In the light of the existing requirements in IFRS Standards, the Interpretations Committee determined that neither an Interpretation nor an amendment to a Standard was necessary. Consequently, the Interpretations Committee [decided] not to add this issue to its agenda.