EFRAG draft comment letter on the IASB’s ED Amendments to the Classification and Measurement of Financial Instruments

EFRAG has published last Friday its draft comment letter in response to the IASB’s Exposure Draft 2023/2 Amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7) (‘the ED’) (link).

Comments can be submitted until 30 June 2023.

​The ED, issued by the IASB on 21 March 2023, proposes amendments to the following requirements:

a) settling financial liabilities using an electronic payment system; and

b) assessing contractual cash flow characteristics of financial assets, including those with environmental, social and governance (ESG)-linked features.

The ED also proposes amendments or additions to the disclosure requirements for:

a) investments in equity instruments designated at fair value through other comprehensive income; and

b) financial instruments with contractual terms that could change the timing or amount of contractual cash flows based on the occurrence (or non-occurrence) of a contingent event.

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