30. May 2023

IASB consultation re. Post-Implementation Review on IFRS 9 (Part 2: Impairment)

Today, the IASB has published a consultation document (“Request for Information”) as next step of its Post-Implementation Review of IFRS 9, Part 2: Impairment. This consultation effectively commences the second phase of this PIR now involving the public interest. As a first phase of this PIR, the IASB had performed Outreach and Research – primarily by consulting the IFRS foundations’ bodies – with the aim of identifying the most urgent issues and questions. These issues are the basis for the public consultation that is now under way.

This PIR of IFRS 9 comprises the requirements on impairment of financial instruments only. The issues for discussion and further examination are the following:

  • general approach to recognising expected credit losses;
  • determining significant increases in credit risk;
  • measuring expected credit losses;
  • simplified approach for trade receivables, contract assets and lease receivables;
  • purchased or originated credit-impaired financial assets;
  • application of the impairment requirements in IFRS 9 with other requirements;
  • transition;
  • credit risk disclosure;
  • other matters.

Other requirements for financial instruments under IFRS 9 have been, or will be, part of separate PIRs. On the one, the IASB has started during 2021 and finalised by end of 2022 a PIR on IFRS 9 (Part 1: Classification and Measurement). On the other, another PIR on IFRS 9 (Part 3: Hedge Accounting) will follow presumably during 2024.

The IASB is now asking for feedback on this PIR by 27 September 2023.

Please find more information on this PIR and the background on the ASCG’s respective project website (in German only).