European accounting bodies launch IFRS 9 field test

The UK Financial Reporting Council (FRC), the European Financial Reporting Advisory Group, the French Autorite des Normes Comptables, the Accounting Standards Committee of Germany and the Organismo Italiano di Contabilita have launched a field test on how the transition from IAS 39 to IFRS 9 requirements will affect classification and measurement of financial assets.

The field test has been launched on the back of the transition from IAS 39 to the latest classification and measurement requirements in IFRS 9, entities may need to measure at fair value certain financial assets that are currently measured at amortised cost, or the other way around.

The FRC and the national standard setters have invited companies to complete the questionnaire by 5 April as it will help them to identify those financial assets for which the measurement basis would change as a result of the transition to IFRS 9. Additionally, follow-up interviews are expected to be conducted.

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