UKEB adopts Amendments to the Classification and Measurement of Financial Instruments

The UKEB has today adopted Amendments to IFRS 9 and IFRS 7–Amendments to the Classification and Measurement of Financial Instruments issued by the IASB in May 2024. The amendments clarify the requirements for:

• The recognition and derecognition of financial assets and financial 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 text of the UK-adopted international accounting standards for the Amendments can be found on our website.

For more information on the UKEB’s approach to this project visit our website.

We would like to thank all stakeholders who contributed to this project.