Early Impressions Amendments to IFRS 9 and IFRS 7 by the IASB

A post implmentation review (PIR) of the classification and measurement requirements of IFRS 9, Financial Instruments, was concluded in 2022. On 30 May 2024, The International Accounting Standards Board (IASB) issued ‘Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)’, addressing concerns raised during the post-implementation review. These amendments are effective for all entities for the reporting periods beginning on or after 1 January 2026.

The amendments mainly focus on recognition and derecognition of financial assets and financial liabilities, with guidance being provided for accounting for financial liabilities settled through electronic transfer, classification of financial assets, with guidance being provided for the assessment of SPPI criteria for arrangements wherein cash flows are linked to contingent events, the treatment of non-recourse assets, and contractually linked instruments (CLI), additional disclosure requirements for Investments in equity instruments designated at Fair Value Through Other Comprehensive Income (FVTOCI) and additional disclosure requirements for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked).