EFRAG has issued a field-test report that summarises the findings received from participants in the field-test on how IFRS 9 would affect the classification and measurement of financial assets.

In November 2012, the IASB issued the Exposure Draft Classification and Measurement: Limited Amendments to IFRS 9 (the ED) to clarify and propose limited changes to the requirements for classifying and measuring financial instruments issued by the IASB in October 2010.

The field-test was undertaken by EFRAG and the National Standard Setters from France, Germany, Italy and the UK to help them formulate their views on the impacts of the application of the new classification and measurement requirements in IFRS 9 and to serve as input to the European Commission’s endorsement process.

Subject to the limitations and constraints set forth in the report, the findings of the field-test indicated the following:

a) More financial assets would be measured at FV-PL under IFRS 9 because they fail the contractual cash flow characteristics assessment

b) Bifurcation of financial assets is currently used only to a limited extent

c) Investment strategies and/or the level at which the business model test is performed could change when implementing IFRS 9 to achieve a particular accounting measurement

EFRAG and National Standard Setters would like to thank all those that participated in this field-test.