IASB concludes its PIR of impairment requirements in IFRS 9
IASB concludes its PIR of impairment requirements in IFRS 9
The International Accounting Standards Board (IASB) has concluded the Post-implementation Review (PIR) of the impairment requirements in IFRS 9 Financial Instruments.
After analysing the evidence gathered in the PIR, the IASB concluded that the impairment requirements in IFRS 9 are working as intended. In particular, the IASB concluded that:
After analysing the evidence gathered in the PIR, the IASB concluded that the impairment requirements in IFRS 9 are working as intended. In particular, the IASB concluded that:
- there are no fundamental questions (fatal flaws) about the clarity or suitability of the core objectives or principles in the requirements.
- in general, the requirements can be applied consistently. However, further clarification and application guidance is needed in some areas to support greater consistency in application.
- the benefits to users of financial statements from the information arising from applying the impairment requirements in IFRS 9 are not significantly lower than expected. However, targeted improvements to the disclosure requirements about credit risk are needed to enhance the usefulness of information for users.
- the costs of applying the impairment requirements and auditing and enforcing their application are not significantly greater than expected.