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The International Accounting Standards Board (IASB) aims to make targeted improvements to the amortised cost measurement requirements in IFRS 9 Financial Instruments by clarifying their underlying principles and adding accompanying application guidance.

IASB® Update September 2025

The IASB met on 24 September 2025 to start deliberating issues within the scope of the project.

Determining effective interest rate at initial recognition (Agenda Paper 11A)

The IASB discussed whether to clarify how an entity applies the requirements in IFRS 9 Financial Instruments on determining the effective interest rate (EIR) if a financial instrument has conditions attached to the contractual interest rate. Specifically, it discussed:

  1. which conditional terms an entity is required to consider in estimating the expected cash flows for the purpose of calculating the EIR; and
  2. which estimation methods an entity is required to use in calculating the EIR.

The IASB tentatively decided to take no further action on this matter.

All 12 IASB members agreed with this decision.

Subsequent changes to the effective interest rate (Agenda Paper 11B)

The IASB discussed whether to clarify the requirements in paragraphs B5.4.5–B5.4.6 of IFRS 9. The IASB considered potential alternatives to clarifying those requirements.

The IASB was not asked to make any decisions.

Next milestone

Exposure Draft