IFRS® Standards

Fees in the "10 per cent" Test for Derecognition (Amendments to IFRS 9)


The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) annual improvements 2018-2020 cycle, to produce a collection of unrelated minor amendments to IFRS® Standards.

Upon modification or exchange of a financial liability, IFRS 9 Financial Instruments specifies a quantitative “10 per cent” test. This test assesses whether the new contractual terms between the borrower and the lender are substantially different from the original contractual terms, in determining whether the original financial liability should be derecognised.

The objective of this improvement is to clarify which fees and costs a company includes in this “10 per cent” test.

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. After considering the responses to the AcSB’s exposure draft and the relevance of the IASB’s proposals to the Canadian market, 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)

Jayshal Rajendra Daya, CPA, CA

Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to April 2017

  • Approving project

    In April 2017, the IASB tentatively decided to propose the amendment to IFRS 9 as part of the next Annual Improvements Cycle.

  • Consulting stakeholders

    IASB Exposure Draft issued in May 2019

    AcSB Exposure Draft issued in May 2019

    The AcSB consulted with our IFRS® Discussion Group in June 2019

  • Deliberating feedback

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

    The IASB deliberated comments received on its Exposure Draft in November 2019

    The IASB is expected to issue the final amendment in the second quarter of 2020

  • Final pronouncement

Read the AcSB’s response letter to the IASB’s Exposure Draft, “Annual Improvements to IFRS® Standards 2018-2020.”

Meeting & event summaries


June 7, 2019

Document for Comment

AcSB Exposure Draft – Annual Improvements to IFRS® Standards 2018-2020

The AcSB has issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by August 20, 2019.

May 31, 2019


IASB Exposure Draft – Annual Improvements to IFRS® Standards 2018-2020

The IASB has issued an Exposure Draft proposing amendments to IFRS Standards as part of its Annual Improvements process. Canadian stakeholders are encouraged to submit their comments to the IASB by August 20, 2019.


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 ballot process.