The International Accounting Standards Board (IASB) intends to create a transition resource group that will focus on the upcoming new requirements for impairment of financial instruments.
The IASB is seeking suitable candidates for membership of the IFRS Transition Resource Group for Impairment of Financial Instruments (ITG) and has issued a call for nominations.
The ITG will provide a discussion forum to support stakeholders on implementation issues that may arise as a result of the new impairment requirements under IFRS 9 Financial Instruments (2014), which will be issued in 2014.
The new expected credit loss model for the impairment of financial instruments under IFRS 9 will represent a fundamental change to current practice. The changes will have significant implications from an implementation as well as a systems perspective, particularly in the financial services sector.
The IASB believes that having a discussion forum, such as the ITG, to provide support for stakeholders post publication will enhance robust and consistent implementation.
The ITG will solicit, analyze and discuss common stakeholder issues arising from implementation of the new requirements that could possibly create diversity in practice.
The ITG will also provide information that will help the IASB determine what, if any, action will be needed to resolve such diversity. The ITG itself will not issue guidance.