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.