In May 2022, the IASB decided to add a maintenance project to its work plan to make narrow-scope amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures in response to the post-implementation review of the classification and measurement requirements. In October 2022, the IASB tentatively decided to make further amendments relating to the derecognition of financial liabilities through electronic cash transfers and the disclosure requirements for equity investments to which an entity applies the presentation option to present fair value changes in other comprehensive income.
The IASB met on 23 November 2022 to discuss proposed amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures.
Contractually linked instruments—Sweep issue (Agenda Paper 16A)
The IASB considered a sweep issue on the scope of transactions to which the requirements in IFRS 9 for contractually linked instruments apply. The IASB tentatively decided to clarify that when an entity determines whether a transaction contains contractually linked instruments as described in IFRS 9, any financial instruments held by the transferor of the underlying assets in the transaction are excluded.
All 11 IASB members agreed with this decision.
Accounting policy choice for derecognition of financial liabilities (Agenda Paper 16B)
The IASB further considered criteria that would allow an entity to derecognise a financial liability before it delivers cash on the settlement date.
The IASB tentatively decided that an entity has an accounting policy choice to derecognise a financial liability before the settlement date when:
Settlement risk is considered insignificant if the payment system used has these characteristics:
The IASB tentatively decided to limit the scope of this accounting policy choice to electronic payment systems.
All 11 IASB members agreed with these decisions.
Due process steps (Agenda Paper 16C)
The IASB tentatively decided to set a comment period of 120 days for the exposure draft being developed for the project.
All 11 IASB members agreed with this decision.
No IASB members indicated an intention to dissent from the proposals in the exposure draft.
The IASB discussed the due process steps—including permission to begin the balloting process—for the exposure draft.
All 11 IASB members confirmed they were satisfied the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the exposure draft.
Exposure Draft
International Accounting Standards Board November 2022