IASB recently published the Exposure Draft Amendments to the Classification and Measurement of Financial Instruments, which proposes amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. The proposed amendments respond to feedback received from a post-implementation review of the classification and measurement requirements in IFRS 9 and the stakeholders’ concerns raised on Tentative Agenda Decision by IFRIC on cash received via an electronic transfer system as settlement of a financial asset.
The Exposure Draft proposes amendments to the requirements for settling financial liabilities using an electronic payment system and assessing contractual cash flow characteristics of financial assets, including those with environmental, social and governance (ESG)-linked features. It also proposes amendments or additions to the disclosure requirements of IFRS 7. BDO’s IFR Bulletin 2023/03 summarises the effects of the proposed amendments.