The minor amendments to FRS 9 Financial Instruments will address a lack of consistency in accounting practice by making the requirements more understandable and consistent, and also include more information on how to deal with environmental, social and corporate governance (ESG) related features in loans.

The changes were made after feedback from stakeholders in the 2022 Post-implementation Review of the accounting standard and clarify the requirements in areas where preparers and investors raised concerns, or where new issues have emerged since IFRS 9 was issued in 2014.

The key changes include: