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26/04/2018 - Long-term investment and equity instruments consultation

​New video presentation with Research Director Filippo Poli on why EFRAG wants your views on recycling and impairment of equity instruments by 25 May 2018.

EFRAG is developing its technical advice to the European Commission (EC) on recycling and impairment of equity instruments designated at fair value through other comprehensive income. It is a significant topic for the European financial reporting community and one which will benefit from your input.

In a video presentation, EFRAG Research Director Filippo Poli explains: why EFRAG is researching the accounting for equity instruments; what has changed with the introduction of IFRS 9; the questions EFRAG is seeking to answer; and why you should respond. 

Now it's time to have your say! 

The insights received will inform EFRAG's response to the EC. 


In the first phase of the project, the EC asked EFRAG to collect quantitative data on the current holdings of equity instruments and their accounting treatment and investigate whether entities expect that IFRS 9's new accounting requirements will affect their decisions to invest in equity instruments. EFRAG reported its findings from this phase to the EC in January 2018.

In the second phase of the project, the EC asked EFRAG to provide advice on whether and how the requirements in IFRS 9 on accounting for holdings of equity instruments could be improved. As part of its due process, EFRAG published a Discussion Paper (DP) to gather constituents' views. 

​EFRAG's DP analyses the relevance of recycling in the context of a long-term investment business model. It also presents arguments on the conceptual relationship between recycling gains and losses on derecognition and impairment and outlines two possible impairment (or equivalent) approaches.