The International Accounting Standards Board (IASB) plans to draft amendments to the financial instruments standard, IFRS 9, before it has even come into force to address concerns over pre-payable financial assets.
The amendments respond to comments received by the IFRS Interpretations Committee and are intended to improve the usefulness of information about these financial assets to meet the standards of the new requirements.
Hans Hoogervorst, chairman of the IASB, said, “These proposed minor amendments to the Standard respond to comments received about the accounting for prepayment options under IFRS 9 and are consistent with the Board’s enhanced focus on supporting implementation of major new Standards.”
The exposure draft is out for consultation until 24 May 2017. The draft can be found here.