IASB Issues Narrow-scope Amendments to Classification and Measurement Requirements for Financial Instruments

The International Accounting Standards Board (IASB) has issued amendments to the classification and measurement requirements in IFRS 9 Financial Instruments, which will address diversity in accounting practice. Read Amendments to the Classification and Measurement of Financial Instruments ‒ Amendments to IFRS 9 and IFRS 7, available on:
https://www.ifrs.org/premium/

These amendments respond to feedback from the 2022 Post-implementation Review of the Accounting Standard, available on:
https://www.ifrs.org/news-and-events/news/2022/12/iasb-publishes-its-review-of-classification-and-measurement-requirements-related-to-financial-instruments/

They also clarify the requirements in areas where stakeholders have raised concerns, or where new issues have emerged since IFRS 9 was issued.

These include:
• Clarifying the classification of financial assets with environmental, social and corporate governance (ESG), and similar features
• Settlement of liabilities through electronic payment systems.

The IASB has also introduced additional disclosure requirements to enhance transparency regarding investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features, for example, features tied to ESG-linked targets.

The amendments are effective for annual reporting periods beginning on or after 1 January 2026.