Post-implementation Review of IFRS 9—Impairment

The International Accounting Standards Board (IASB) has completed its Post-implementation Review of the impairment requirements in IFRS 9 Financial Instruments. On 4 July 2024, the IASB published the project summary and feedback statement, in which the IASB concluded that the impairment requirements are working as intended. Specifically, the requirements:

• have led to more timely recognition of credit losses compared to when companies applied IAS 39 Financial Instruments: Recognition and Measurement;
• have raised no fundamental questions about the clarity or suitability of their core objectives or principles;
• provide useful information to investors about expected credit losses, with some credit risk disclosure requirements requiring targeted improvements to further enhance the usefulness of information for investors; and
• can generally be applied consistently, with some areas requiring further clarification and application guidance.

The IASB will explore whether it can clarify the requirements for modification, derecognition and write-off of financial instruments and the consequential effect on recognition of expected credit losses as part of its project on Amortised Cost Measurement.

The IASB has also added a project to its pipeline to explore whether the IASB can make targeted improvements to the credit risk disclosure requirements set out in IFRS 7 Financial Instruments: Disclosures.

The IASB concluded that its Post-implementation Review of the impairment requirements in IFRS 9 Financial Instruments was complete and that no further work on the project was required.