UK-Adopted International Accounting StandardsAdoption Status Report
UK-Adopted International Accounting StandardsAdoption Status Report

Amendments to the Classification and Measurement of Financial Instruments

Timeline

On 30 May 2024 the International Accounting Standards Board (IASB) published Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7. The Amendments will be effective for annual reporting periods beginning on or after 1 January 2026, with earlier application permitted.

Background

The Amendments are a response to feedback received during the Post-implementation Review of IFRS 9 – Classification and Measurement (PIR). The UKEB’s response to the PIR was submitted in January 2022. Further details on the UKEB’s influencing project on the PIR can be found on the project webpage.

In March 2023 the IASB published the exposure draft (ED) Amendments to the Classification and Measurement of Financial Instruments. The UKEB’s response to the ED was submitted in July 2023. Further details on the UKEB’s influencing project on this ED can be found on the project webpage.

Main requirements in the Amendments to the Classification and Measurement of Financial Instruments

The Amendments provide further clarification and requirements for:

  • The recognition and derecognition criteria for financial assets and liabilities.
  • The classification requirements for financial assets, particularly those containing contingent features (such as ESG-linked targets), non-recourse features or contractually linked instruments.
  • Disclosures related to the amendments to the classification requirements, and also for investments in equity instruments designated at fair value through other comprehensive income.

UKEB outreach

The UKEB outreach plan includes discussions with stakeholders and public consultation on the UKEB’s Draft Endorsement Assessment Criteria (DECA). Publication of the DECA for consultation is expected in October 2024.

For further updates on UKEB projects, you can subscribe to our newsletters and alerts by emailing contact@endorsement-board.uk and putting SUBSCRIBE in the subject.

UKEB meetings

Meeting(s) related to the endorsement of the Amendments are as follows:

Title
Date
Size
Document type
Project Initiation Plan - Amendments to the Classification and Measurement of Financial Instruments
10 July 2024
250Kb
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