The International Accounting Standard Board (IASB) has proposed minor amendments to be made to IFRS 9 Financial Instruments to enable companies to measure at amortised cost certain prepayable financial assets with so-called negative compensation.
The proposed amendments are intended to improve the usefulness of information about these financial assets that the new Standard requires.
Commenting on the proposals, Hans Hoogervorst, Chairman of the International Accounting Standards Board, 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, Prepayment Features with Negative Compensation (Proposed amendments to IFRS 9), can be viewed from the IFRS website.
Any comments need to be submitted by 24 May 2017.
Source: IFRS, 21 April 2017