On 19 July, ESBG submitted its response to the IASB’s consultation on its Exposure Draft (ED) on Amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7).

The proposed amendments are a direct response to the feedback gathered from a post-implementation review of the classification and measurement requirements in IFRS 9 and include clarifications on the classification of financial assets with environmental, social and corporate governance (ESG) and similar features as well as on the Settlement of liabilities through electronic payment systems, among others. Additionally, the ED suggests introducing revisions and additions to the disclosure requirements stated in IFRS 7.

ESBG’s response concentrates on 5 different pillars :

  • Classification of financial assets – contractual terms that are consistent with a basic lending arrangement
  • Disclosures – contractual terms that could change the timing or amount of contractual cash flows
  • Derecognition of a financial liability settled through electronic transfer
  • Classification of financial assets – financial assets with non-recourse features
  • Disclosures – investments in equity instruments designated at fair value through other comprehensive income

Executive SummaryFull Position Paper

Andreea Lungu
Advisor- Financial Reporting and Taxation
e.: andreea.lungu@wsbi-esbg.org
t.: +32 2 211 11 64