The exposure draft proposes amendments to the classification and measurement requirements as a result of post-implementation feedback from preparers.

Most stakeholders felt that the requirements achieved their intended purpose, but called for more clarification on specific areas of the accounting standard, including the reporting of financial assets linked to environmental, social and corporate governance (ESG) issues.

The proposed amendments relate to derecognition of financial liabilities settled through electronic transfer, assessment of contractual cash flow characteristics in classifying financial assets, and disclosure of information about some financial instruments.