The International Accounting Standards Board (IASB) has concluded a review of the impairment requirements in IFRS 9 Financial Instruments since it came into force on 1 January 2018.

The two-year post-implementation review (PIR) found that there were ‘no fundamental questions - fatal flaws - about the clarity or suitability of the core objectives or principles in the requirements’.

While the IASB said ongoing costs were ‘not significantly greater than expected’, it did comment on feedback from academics that found that listed entities incurred higher audit fees after transition to IFRS 9.

In general, while the standard is challenging, on the whole the requirements can be applied consistently, however, IASB accepted that ‘further clarification and application guidance is needed in some areas to support greater consistency in application’.

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