The European Financial Reporting Advisory Group, together with other European national standard-setters, has invited companies to take part in a field test on how the transition from IAS 39, Financial Instruments: Recognition and Measurement, to the new IFRS 9, Financial Instruments requirements will affect classification and measurement of assets.

The call comes after the International Accounting Standards Board (IASB) issued an exposure draft in November, Classification and Measurement: Limited Amendments to IFRS 9, to propose changes in classification and measurement requirements in the standard.

EFRAG says that as a result of the transition, companies might need to measure at fair value some financial assets that are currently measured at amortised cost, or the other way around.

EFRAG and National Standard Setters are performing a joint field-test on how the new requirements would affect the current classification and measurement of financial assets.

The test is meant to identify in what circumstances in practice the application of the new requirements in IFRS 9, as modified by the ED, would lead to changes in the current classification and measurement of financial assets under IAS 39; and to gather information on the characteristics of the financial assets involved, their relative significance and the high level reasons for those changes.

The field test involves a questionnaire that EFRAG has developed in which it asks participants to identify those financial assets for which the measurement basis would change as a result of the transition to IFRS 9, as modified by the ED. The standard-setters also expect to conduct follow-up interviews with participants, who must complete and return questionnaires by 5 April.

EFRAG will share the results of the field test with other national standard-setters, the IASB and the European Commission.