IFRS 9 impairment – ITG discussions under way

IFRS 9 impairment – ITG discussions under way

This IFRS newsletter reports on the latest discussions on impairment of financial assets.

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IFRS 9 Impairment newsletter image: Rusting ship on sandy shore

We report on the first substantive meeting of the ITG in April 2015.

The new expected credit loss model for the impairment of financial instruments represents a fundamental change to current practice.

To help stakeholders with implementation issues, the IASB has established the IFRS Transition Resource Group for Impairment of Financial Instruments (the ITG), which held its first substantive meeting in April 2015.

For more detail on the ITG’s discussions, read Issue 1 of our IFRS Newsletter: IFRS 9 Impairment.


The ITG discussed eight topics submitted by stakeholders. The issues generating most conceptual debate related to:

  • applying existing IFRS guidance on adjusting post-balance sheet events to forecasts of future economic conditions; and 
  • determining the period over which an entity is expected to be exposed to credit risk on revolving credit facilities.

On other issues, members of the group generally appeared to agree on the interpretation of the standard. In some cases, they highlighted the operational challenges of implementing the requirements.


For each issue submitted, the IASB will consider what action – if any – is required. The ITG’s next meeting is planned for 16 September 2015.

Visit our IFRS Newsletters page for access to our latest newsletters on a range of major IFRS topics, including financial instruments and IFRS for banks and insurers.

And go to our IFRS – Financial instruments hot topics page for more on these and other aspects of financial instruments accounting under IFRS.

About the ITG

The purpose of the ITG is to:

  • solicit, analyse and discuss stakeholder implementation issues;
  • inform the IASB about those implementation issues, which will help the IASB determine what, if any, action will be needed to address those issues; and
  • provide a public forum for stakeholders to learn about the new impairment requirements from others involved with implementation.

The ITG does not have standard-setting authority, and its purpose is to advise the IASB. 

ITG members include representatives from banks and audit firms. Certain IASB Board members and representatives from the Basel Committee on Banking Supervision and from the International Organization of Securities Commissions are also observers at the meetings. 

The meetings are chaired by an IASB Board member. The ITG’s agenda papers, prepared by the IASB staff, are publicly available and all meetings are held in public. Minutes of the meeting will also be made publicly available.

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