On May 28, 2025, EU CMSN issued Reg 2025/1047 of May 27, 2025 amending Reg 2023/1803 as regards IFRS 9 and IFRS 7; in force on the twentieth day following that of its publication in the Official Journal of the European Union, i.e. Jun. 17, 2025.
Each company shall apply the amendments referred to in Article 1, at the latest, as from the commencement date of first financial year starting on or after Jan. 1, 2026.
EFRAG issued draft endorsement advice re Amendments to the classification and measurement of financial instruments (amendments to IFRS 9 and IFRS 7), which were issued by the IASB on May 30, 2024; also issued an invitation to comment.
The amendments address clarifications requested by stakeholders related to the assessment of contractual cash flow characteristics of financial assets and accounting for settlement of financial liabilities through electronic payment systems.
EFRAG's preliminary assessment recommends endorsing amendments for use in EU.
The consultation evaluates whether these changes meet EU technical endorsement criteria and are conducive to the European public good.
On Sep. 5, 2024, EFRAG reminded of deadline to comment on its draft endorsement advice on Amendments to the classification and measurement of financial instruments.
EFRAG recommends endorsement of the amendments for use in the EU, and is seeking comments on all aspects of its analysis supporting its preliminary conclusions.
Stakeholders have until Sep. 13, 2024 to comment via comment form provided.
Oct. 9, 2024 Final Endorsement Advice
On Oct. 9, 2024, EFRAG announced it submitted endorsement advice to the European Commission on changes to classification and measurement of financial instruments.
EFRAG assesses that the amendments to IFRS 9 and IFRS 7 meet all technical endorsement criteria of International Accounting Standards (IAS) Regulation and are conducive to the EU public good, it therefore recommends endorsement of changes.
EFRAG also updated its endorsement status report, the amendments are effective for annual periods beginning on or after Jan. 1, 2026, with earlier application permitted.
Document dated Oct. 9, 2024, received from EFRAG Oct. 10, summarized Oct. 14.
Jan. 23, 2025 Draft EC Regulation
On Jan. 23, 2025, EU CNCL issued note attaching draft EC regulation amending Reg 2023/1803, as regards IFRS 9 and IFRS 7 (D103844/01); regulation in force on 20th day following that of its publication in the Official Journal of the European Union.
Each company shall apply the amendments referred to in Article 1, at the latest, as from the commencement date of first financial year starting on or after Jan. 1, 2026.
May 2025 Official Journal
On May 28, 2025, EU CMSN issued Reg 2025/1047 of May 27, 2025 amending Reg 2023/1803 as regards IFRS 9 and IFRS 7; in force on the twentieth day following that of its publication in the Official Journal of the European Union, i.e. Jun. 17, 2025.
Each company shall apply the amendments referred to in Article 1, at the latest, as from the commencement date of first financial year starting on or after Jan. 1, 2026.
