What companies need to know about changes to the derecognition of a financial asset or liability under IFRS.
In brief
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Clarification of the derecognition date of a financial asset or liability when companies derecognize a financial asset or liability.
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Companies using electronic payment systems may deem a financial liability to be discharged before settlement date if certain criteria are met.
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The targeted improvements include new requirements not only for financial institutions, but also for companies, who may need to make changes to their systems.
In May 2024, the International Accounting Standards Board (IASB) published amendments to the classification and measurement requirements for financial instruments in IFRS 9 Financial Instruments. The amendments are effective for annual reporting periods beginning on or after 1 January 2026 and earlier application is permitted.