First IASB deliberations on the post-implementation review of IFRS 9, Phase 2 – Impairment

Keywords: Mazars, Thailand, IFRS 9, Impairment, ASB, ECL

General approach to the recognition of expected credit losses (ECL)  

Without questioning the general approach, stakeholders had called on the IASB to reconsider its application to:  

• intergroup loans and guarantees, and  
• purchased or originated credit-impaired financial assets (POCI).  

However, the staff plan to seek the opinion of the Interpretations Committee (IFRS-IC) at its March 2024 meeting (paper available here) in order to analyse the application difficulties reported, particularly on the subject of intragroup loans and guarantees. 

Determining significant increases in credit risk  

Stakeholders had drawn the IASB’s attention to:  

• the diversity in practice when determining significant increases in credit risk (SICR);  
• the limited use of collective assessment of the SICR. 

In response, the Board decided to take no additional standard-setting measures, for the same reasons as those outlined above for the general approach.  

The IASB’s forthcoming meetings will consider feedback on the measurement of provisioning and post-model adjustments, interactions with other standards, and disclosures in the notes to the financial statements.