22-7-2009 | EFRAG's Draft Comment letter on the IASB's Request for Information - Impairment of Financial Assets: Expected Cash Flow Approach

EFRAG has issued its draft comment letter in response to the IASB's Request for Information ('Expected Loss Model') Impairment of Financial Assets: Expected Cash Flow Approach. The letter can be downloaded here and comments are invited on the letter by 21 August 2009.
	In June 2009 the IASB issued a Request for Information ('Expected Loss Model') Impairment of Financial Assets: Expected Cash Flow Approach.  The Request for Information asks for information on the feasibility of implementing an expected cash flow approach to impairment of financial assets.  It does not seek views on the relative advantages and disadvantages of alternative impairment approaches.  EFRAG supports the IASB's decision to review the current incurred loss model of impairment of financial assets in IAS 39 Financial Instruments: Recognition and Measurement.  Our initial view is that implementation of an expected cash flow approach will involve significant operational challenges in Europe and therefore care needs to be taken if the IASB decides to proceed with this model.  As a result we agree with the feasibility focus of the IASB paper and commend the IASB for seeking such advice early in the project.
Document : EFRAGs draft letter on IASB Request for Information re Impairment of Financial Assets.pdf
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