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EFRAG and the partner National Standard Setters (ANC, ASCG, FRC and the OIC) carried out a follow-up questionnaire on IFRS 9 Financial Instruments. The purpose of this questionnaire was to identify to what extent the concerns raised by constituents in earlier field-tests were still applicable after the publication of the final IFRS 9 in July 2014. Twenty-four companies participated in the questionnaire.
A majority of the participants had prepared a qualitative analysis of the classification requirements in IFRS 9. Quantitative impacts were mostly not available yet. A majority of participants from all industries expected most financial assets currently classified as loans and receivables, held to maturity and available for sale under IAS 39 to meet the SPPI-test. Participants were divided on the implications for lending practices. The participants from the insurance industry called for a deferral of IFRS 9 for their industry.
Participants were divided whether the issues identified during field-tests in 2012 and 2013 regarding impairment were resolved; although more participants thought they were resolved than those who thought they were not resolved. Also, a few participants were able to provide results of their initial quantitative modelling of the effect on IFRS 9 on loss allowances.
On general hedge accounting some remaining issues were mentioned as unresolved by individual participants.
Overall, IFRS 9 was recommended by some participants of the banking industry for endorsement, some even recommended early endorsement. No participant recommended not endorsing IFRS 9.
Results of the pre-endorsement questionnaire