Call for Comments – Draft Endorsement Criteria Assessment on the Amendments to the Classification and Measurement of Financial Instruments

The UKEB has published a Draft Endorsement Criteria Assessment (DECA) on the potential use in the UK of the IASB’s Amendments to the Classification and Measurement of Financial Instruments.

In May 2024 the IASB published the Amendments to IFRS 9 and IFRS 7 - Amendments to the Classification and Measurement of Financial Instruments. The amendments aim to 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.

The Amendments are effective for annual reporting periods beginning on or after 1 January 2026, with early application permitted.

The UKEB invites stakeholders’ views on the DECA conclusions regarding potential UK adoption of the Amendments.

Stakeholders are invited to provide feedback either via the Invitation to Comment form or by email to UKEndorsementBoard@endorsement-board.uk. Comments are welcome until 10 January 2025.

Visit our website for more information on the UKEB’s approach to this project.