EFRAG requests comments on its draft endorsement advice on Applying IFRS 9 with IFRS 4

15 November 2016

EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of Amendments to IFRS 4: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (the 'Amendments').

The objective of the Amendments is to address the concerns of some relating to the misalignment of the effective dates of IFRS 9 and the forthcoming insurance contracts Standard.

The Amendments introduce two options - an optional overlay approach and an optional temporary exemption from IFRS 9.

Entities shall apply the overlay approach when they first apply IFRS 9 while the initial application of the temporary exemption from IFRS 9 is effective for annual periods beginning on or after 1 January 2018.

EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends their endorsement.

EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.

The following documents are provided:

• The draft endorsement advice;
• The invitation to comment; and
• The European Commission's request for advice on the endorsement of the Amendments.

Comments are requested by 13 December 2016. 

Full press release

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