Post-implementation Review of IFRS 9 – Impairment

Keywords: Mazars, Thailand, IFRS 9, Impairment, Expected Credit Losses, ECLs

12 April 2023 

At its February 2023 meeting, the IASB discussed feedback from stakeholders and decided on the topics to be included in its Request for Information (RFI), scheduled for publication in May 2023.

The RFI would cover the following topics:

• the general approach for recognising expected credit losses (ECLs); and, more specifically:
  • the added value of the approach for helping users of financial statements to understand changes in credit risk;
  • the cost/benefit ratio of applying the approach to specific transactions, such as intragroup loans;
• the concept of significant increases in credit risk; and, more specifically:
  • the use of judgement to assess whether there has been a significant increase in credit risk;
  • the range of practices used to assess such increase, and the potential reasons for any diversity of practices;
• the methods used to measure ECLs; and, more specifically:
  • the use of a forward-looking approach that incorporates multiple macroeconomic scenarios;
  • the measurement of ECLs in periods of increased economic uncertainty, including the use of post-model adjustments;
• how to apply the ECL requirements to purchased or originated credit-impaired financial assets;
• the simplified approach used for trade receivables, contract assets and lease receivables; and, more specifically:
  • the impact of the simplified approach;
  • the inclusion of forward-looking information in this approach;
• the accounting for loan commitments, collateral and other credit enhancements held, and financial guarantees issued;
• the interaction between the ECL requirements and the other requirements of IFRS 9 as well as other IFRS accounting standards;
• the effects of the transition reliefs provided by the IASB, and the balance between reducing costs for preparers and providing useful information to users of financial statements;
• the credit risk disclosure requirements in IFRS 7; and, more specifically:
  • whether the balance between comparability and relevance of information is appropriate for these disclosures;
  • whether they are compatible with digital reporting requirements.