Debt modifications under IFRS 9

The IASB has finalised and published its position by adding some paragraphs in the Basis for Conclusions to the IFRS 9 amendment on symmetric prepayment options, published on 12 October.

Keywords: Mazars, Thailand, IFRS, IASB, IFRS 9

15 December 2017

In these two additional paragraphs, the Board simply stresses that under IFRS 9, the accounting treatment for liabilities that are renegotiated (“modified”) but not derecognised is the same for both financial assets and financial liabilities. The Board has also decided that no interpretation or amendment of the standard is necessary, given that the position in IFRS 9 is already clear, despite the criticisms expressed by many stakeholders.