Classification and Measurement: Limited Amendments to IFRS 9

CLASSIFICATION AND MEASUREMENT: LIMITED AMENDMENTS TO IFRS 9 (PROPOSED AMENDMENTS TO IFRS 9 (2010))
Basis for Conclusions on
the Exposure Draft Classification and Measurement:
Limited Amendments to IFRS 9 (Proposed amendments to
IFRS 9 (2010))
This Basis for Conclusions accompanies, but is not part of, the draft IFRS.
Introduction
BC1 This Basis for Conclusions summarises the considerations of the International
Accounting Standards Board (IASB) in reaching the conclusions in the Exposure
Draft Classification and Measurement: Limited Amendments to IFRS 9 (Proposed
amendments to IFRS 9 (2010)). Individual IASB members gave greater weight to
some factors than to others.
BC2 When the first requirements of IFRS 9 were issued in 2009, the IASB’s priority
was to make improvements to the accounting for financial instruments
available quickly. Consequently, although financial instruments are part of the
convergence efforts with the US Financial Accounting Standards Board (FASB),
the IASB issued the classification and measurement requirements for financial
assets in IFRS 9 while the FASB was still developing its classification and
measurement model. However, the boards remained committed to achieving
increased comparability internationally in the accounting for financial
instruments.
BC3 In addition, when issuing IFRS 9 in 2009, the IASB acknowledged the difficulties
that might be created by differences in timing between the Classification and
Measurement phase of the project to replace IAS 39 Financial Instruments:
Recognition and Measurement and the Insurance Contracts project. The IASB
consistently stated that the interaction between IFRS 9 and the Insurance
Contracts project would be considered once the insurance contracts model has
been developed sufficiently.
BC4 Since the publication of IFRS 9, the IASB has received feedback from interested
parties in various jurisdictions who have chosen to apply IFRS 9 early or who
have reviewed IFRS 9 in detail in preparation for application. Some have raised
application issues.
BC5 Accordingly, the IASB has proposed limited amendments to IFRS 9 with the aims
of:
(a) addressing specific application issues raised by those who have chosen to
apply IFRS 9 early or who have reviewed IFRS 9 in detail in preparation
for application;
(b) seeking to reduce key differences with the FASB’s tentative classification
and measurement model; and
(c) considering the interaction between the classification and measurement
of financial assets and the accounting for insurance contracts liabilities.
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� IFRS Foundation