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In May 2017, EFRAG received a request for technical advice from the European Commission on the accounting treatment of equity instruments under IFRS 9 Financial Instruments from a long-term investment prospective.
After an extensive consultation, including the publication of a Discussion Paper, EFRAG is now pleased to publish its response to the EC request. The response addresses the interaction between an impairment model and the reintroduction of recycling, and what characteristics an impairment model for equity instruments could have.
EFRAG is currently working on a second request for technical advice on possible alternative accounting treatments for equity and equity-type instruments.