Mandatory date: Annual periods beginning on or after 1 January 2023. Earlier application is permitted.

IFRS 9 is amended to: 

• Clarify that IFRS 9 does not apply to rights and obligations arising under a contract within the scope of IFRS 17 and provide exceptions
• Provide guidance on the derecognition of financial liabilities related to:
• investment funds that provide investors with benefits determined by units in the fund and
  • investment funds that provide investors with benefits determined by units in the fund and
  • groups of insurance contracts with direct participation features.

Mandatory date: Annual periods beginning on or after 1 January 2023. Earlier application is permitted.

The scope of IFRS 9 is amended to:

• Exclude insurance contracts and investment contracts with discretionary participation features within the scope of IFRS 17 
• Include certain components of insurance contracts and rights and obligations associated with insurance contracts.

Mandatory date: Annual periods beginning on or after 1 January 2022. Earlier application is permitted.

When a financial liability is exchanged or modified, it is derecognised and a new liability recognised if the new contractual terms are substantially different from the old contractual terms. A quantitative 10% test is applied to assess whether this is the case. The amendment clarifies that only fees paid or received between the entity and the lender (or on their behalf) are included in the test.

For a more detailed discussion of the amendment, read the faculty’s factsheet:

• 2022 IFRS Accounts

Mandatory date: Annual periods beginning on or after 1 January 2021. Earlier application is permitted.

The amendments introduce mandatory practical expedients that must be applied when interest rate benchmarks are reformed in order to avoid accounting impacts that do not result in the provision of useful financial information. Companies:

• must account for a change in the contractual cash flows of a financial instrument due to the introduction of a new interest rate benchmark by updating the effective interest rate to reflect the change;
• can amend hedge documentation to reflect changes arising as a result of interest rate benchmark reform without triggering the discontinuance of hedge accounting;
• should deem a non-contractually specified risk component as separately identifiable for the purpose of hedge accounting if it has a reasonable expectation that it will meet that requirement within 24 months;
• should deem the balance in a cash flow hedge reserve at the date of the replacement of a benchmark interest rate as being based on that replacement rate;
• should allocate a group of hedged items to subgroups within the hedging relationship based on the benchmark rate being hedged.

For a more detailed discussion of the amendment, read the faculty’s factsheet:

• 2021 IFRS Accounts

Mandatory date: Annual periods beginning on or after 1 January 2020. Earlier application is permitted.

The amendments provide relief to certain hedge accounting requirements in order to avoid unnecessary discontinuation of existing hedge relationships during the period of uncertainty over interest rate benchmark reform.

For cash flow hedges, the amendments require that an entity assume that hedged cash flows based on an interest rate benchmark will continue beyond the period when they could potentially be replaced by cash flows based on an alternative rate. Similarly, for fair value hedges, the amendments require that interest rate benchmark risk continues to be treated as identifiable in the hedged item even if this ceases to be the case.

The amendments are applied retrospectively to hedge relationships that existed at the beginning of the reporting period in which an entity first applies the amendments or were designated thereafter, and to gains or losses in the cash flow hedge reserve at the beginning of that period.

For a more detailed discussion of the amendment, read the faculty’s factsheet:

• 2020 IFRS Accounts