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Amendments to classification and measurement of financial instruments
This publication summarises the amendments to IFRS 9 and IFRS 7 for the classification and measurement of financial instruments.
The amendments clarify that a financial liability is derecognised on the ‘settlement date’ and introduce an accounting policy choice to derecognise financial liabilities settled using an electronic payment system before the settlement date.
Other clarifications include the classification of financial assets with ESG linked features via additional guidance on the assessment of contingent features. Clarifications have been made to non-recourse loans and contractually linked instruments.
Additional disclosures are introduced for financial instruments with contingent features and equity instruments classified at fair value through OCI.
The amendments are effective for annual periods starting on or after 1 January 2026. Early adoption is permitted, with an option to early adopt the amendments for contingent features only.