The International Accounting Standards Board (IASB) has proposed minor amendments to IFRS 9, which will replace IAS 39 Financial Instruments from January 2018. IFRS 9 affects the classification, measurement, impairment and hedge accounting of financial instruments. The IASB says this amendment to IFRS 9 will enable companies to measure at amortised cost certain prepayable financial assets with so-called negative compensation.
According to the IASB's chairman Hans Hoogervorst, “These proposed minor amendments to the standard respond to comments received about the accounting for prepayment options under IFRS 9 and are consistent with the board’s enhanced focus on supporting implementation of major new standards.”
IFRS 9 will change some aspects of hedge accounting for corporates, as discussed in this article: How will IFRS 9 change hedge accounting for corporates?
The Exposure Draft containing the proposed amendments to IFRS 9 is available here: Prepayment Features with Negative Compensation. The comment deadline is 24 May 2017.
IFRS 9 for corporates: what does it mean and are you ready?
Adoption of IFRS 9 is two years away – or less for early adopters. What are the implications for non-financial corporates and how can they ensure compliance with the new accounting standards?
How will IFRS 9 change hedge accounting for corporates?
Seven out of 10 finance teams say that they have or will implement new hedging strategies as a result of IFRS 9, which will replace IAS 39 Financial Instruments
Reval: Divergence from IFRS 9 accounting standards will hurt corporates’ competitive edge
New IFRS 9 Hedge Accounting rules will only benefit those companies who are setup to take advantage