(Article on the online magazine CFO Innovation Asia)
IFRS 9: Financial Instruments will become effective in March 2018 and in order to prepare the adoption of this standard and respond to various questions raised by interest parties, he International Accounting and Standard Board issued an exposure draft to amend IFRS 9 for which the comment deadline has just ended. According to the IASB, the stakeholders’ feedback can be categorized into three groups:
The comment deadline on t and the stakeholders’ feedback is not very positive. the believe that there never was an issue with IFRS 9
- the believe that changes to IFRS 9 are needed, but the approach is wrong/might have unintended consequences
- the believe that changes to IFRS 9 might be warranted, but the timing is wrong
EFRAG, the European Financial Reporting Advisory Group, notes that the timing problems can be mitigated to a certain degree by a different effective date.
“EFRAG recommends that the IASB change the effective date to 1 January 2019, with early application permitted, rather than the date proposed in the Amendments. This is in order to provide more time for Europe’s and other jurisdictions’ translation and/or endorsement processes and to address the concerns of SEC-filers.”
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