EFRAG's Final Comment letter in response to the IASB Request for Information on the Post-implementation Review of IFRS 9 - Classification and Measurement
In its FCL EFRAG considers that the combination of the cash flow characteristics of the assets together with the assessment of the entity's business model has proved to generally provide an appropriate basis to align the measurement of financial instruments with how they are managed by the entity.
However, there are several areas that require attention, illustrated in detail in the FCL.
In particular EFRAG brings to the attention of the IASB the following:
- Application of the SPPI test to sustainable finance products. This issue is expected soon to be so pervasive in Europe that it should be treated as a separate and urgent issue.
- The IASB should expeditiously review the non-recycling treatment of equity instruments within IFRS 9.
- Some mutual funds and puttable instruments respond to market variables in a similar way to equity instruments and should be treated similarly.
Further details about these and other messages in the EFRAG's Final Comment Letter can be found here.