Exposure Draft on Amendments to the Classification and Measurement of Financial Instruments

Accounting Standards Board
The Institute of Chartered Accountants of India
10th May, 2023

Exposure Draft on Amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7)

Indian Accounting Standards (Ind AS) are based on the IFRS Standards issued by the International Accounting Standards Board (IASB) of IFRS Foundation. The IASB, before issuing the new/amendments to IFRS Standards, issues consultative documents [such as Discussion Paper (DP), Exposure Draft (ED) etc] seeking public comments from across the globe. The Accounting Standards Board (ASB) of ICAI with the aim to provide an opportunity to the various stakeholders in India to raise their concerns at the initial International Standard-setting stage itself, invites comments on the consultative documents issued by the IASB. It also helps the Indian stakeholders to be aware of the preparations required for implementation of Ind AS in line with adhering to global timelines. Recently, the IASB has issued the following Exposure Draft for public comments:

Exposure Draft on Amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7)

The International Accounting Standards Board (IASB) carried out a post implementation review (PIR) of the classification and measurement requirements in IFRS 9 Financial Instruments and related requirements in IFRS 7 Financial Instruments: Disclosures. After analysing the evidence gathered in the PIR, the IASB concluded that, in general, the requirements can be applied consistently and that in doing so an entity provides useful information to users of its financial statements. However, in relation to some matters, the requirements should be clarified to improve their understandability. Accordingly, the IASB has issued the Exposure Draft, proposing amendments in context of the following:

• 1. Derecognition of a financial liability settled through electronic transfer
• 2. Classification of financial assets—to clarify the application guidance for assessing the contractual cash flow characteristics of financial assets
• 3. Amendments or additions to the disclosure requirements in IFRS 7

Invitation to comment

The Accounting Standards Board (ASB) of ICAI with the aim to provide an opportunity to the various stakeholders in India to raise their concerns at the initial International Standard-setting stage itself, invites comments from public. The downloadable version is available at: https://resource.cdn.icai.org/73978asb59820.pdf

How to comment

Comments on the abovementioned ED may be submitted through any of the following modes, so as to be received not later than June 10, 2023:

Further clarifications on this ED may be sought by e-mail to asb@icai.in