Project history

In June 2025, the IASB decided to add a standard-setting project to its work plan, with the objective of making targeted improvements to amortised cost measurement requirements in IFRS 9, namely:

  • to resolve widespread application issues arising from these requirements in IFRS 9 by clarifying the underlying principles or developing new principles and adding guidance; and
  • to improve information provided to users of financial statements about the effect of modifications, derecognition or write-offs on an entity’s financial instruments.

With this project, the IASB ultimately aims:

  • to reduce diversity in practice by clarifying amortised cost measurement requirements; and
  • to clarify intersections between amortised cost requirements and impairment requirements in IFRS 9.

Current status

The IASB is currently deliberating the ED proposals.

The IASB has already discussed determining the effective interest rate (‘EIR’) at initial recognition, subsequent changes through the EIR, the definition of a ‘modification’ and determining whether a modification results in derecognition. It still needs to discuss other matters related to modifications (e.g., the effect of modifications on EIR), the boundaries between modification, derecognition and impairment and the measurement of a financial liability arising from a contingent settlement provision (which was originally deliberated as part of the FICE project).

The EFRAG Secretariat is monitoring the IASB's deliberations.

The Exposure Draft is expected in 2027.