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IFRS® Accounting Standards

Classification and Measurement of Financial Instruments

Summary

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to develop narrow scope amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures.

Specifically, the project aims to clarify the requirements for assessing a financial asset’s contractual cash flow characteristics, as well as considering other matters related to the derecognition of financial liabilities and the disclosure requirements for certain equity investments.

The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB proposal. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS® Standards for publicly accountable enterprises.

Staff Contact(s)

Andrew White, CPA, CA Associate Director, Accounting Standards Board

Phone number  +1 416 204 3487
Email address  [email protected]

Project Status

  • Information gathering

    Completed as part of the Post-implementation Review of IFRS 9 Classification and Measurement

  • Approving project

    The project was approved in May 2022

  • Consulting stakeholders

    The IASB issued its Exposure Draft, Amendments to the Classification and Measurement of Financial Instruments, in March 2023

    The AcSB issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic in April 2023

  • Deliberating feedback

    The IASB and the AcSB are deliberating comments on their Exposure Drafts

  • Final pronouncement

News

July 25, 2023

International Activity

AcSB Response – Amendments to the Classification and Measurement of Financial Instruments Exposure Draft

On July 17, 2023, the AcSB responded to the IASB Exposure Draft, “Amendments to the Classification and Measurement of Financial Instruments.” In our response letter, we were broadly supportive of the amendments outlined in the Exposure Draft. However, we recommended that the IASB clarify or provide additional application guidance for several of its proposals and give additional flexibility on the proposed criteria associated with the derecognition of financial liabilities paid using an electronic payment system. Read our letter for more on the matters we raised to the IASB for further consideration.

April 28, 2023

News, Document for Comment

AcSB Exposure Draft – Amendments to the Classification and Measurement of Financial Instruments

The AcSB issued its Exposure Draft which corresponds to the IASB’s Exposure Draft on this topic. If you would like your feedback considered prior to our Board finalizing our comment letter, please respond to us by July 7, 2023.

March 24, 2023

Document for Comment, International Activity

IASB Exposure Draft – Amendments to the Classification and Measurement of Financial Instruments

The IASB has published an Exposure Draft, Amendments to the Classification and Measurement of Financial Instruments, which proposes updates to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. Respond with your feedback by July 19, 2023.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.