26/03/2018 - EFRAG Endorsement Status Report - Update
The endorsement by the European Commission of Prepayment Features with Negative Compensation (Amendments to IFRS 9) is now reflected in the Endorsement Status Report.
The European Union has published a Commission Regulation endorsing Prepayment Features with Negative Compensation (Amendments to IFRS 9). The Amendments are effective for annual periods beginning on or after 1 January 2019.
The Amendments change IFRS 9 for particular financial assets that would otherwise have contractual cash flows that are solely payments of principal and interest but do not meet the condition only as a result of a negative prepayment feature. Specifically, for a financial asset that contains a prepayment option that may result in the payment of a reasonable negative compensation amount, the Amendments require the financial asset to be measured at amortised cost or at fair value through other comprehensive income, subject to the assessment of the business model in which it is held.
Link to the publication in the Official Journal of the European Union: Commission Regulation (EU) 2018/498 as of 22 March 2018
The updated EFRAG Endorsement Status Report can be downloaded below and under the menu 'Endorsement Status'.