OIC, the National Standard Setters ANC, ASCG, FRC and EFRAG invite companies to participate in a field-test on how the transition from IAS 39 to the new IFRS 9 requirements will affect classification and measurement of financial assets.

In November 2012, the IASB issued the Exposure Draft (ED) Classification and Measurement: Limited Amendments to IFRS 9 to propose changes in the classification and measurement requirements in IFRS 9 Financial Instruments. As a consequence of the transition from IAS 39 to the new classification and measurement requirements in IFRS 9, as modified by the ED, entities might need to measure at fair value some financial assets that are currently measured at amortised cost, or the other way around.

This field-test is carried out by OIC with the National Standard Setters ANC, ASCG, FRC and the EFRAG. Additionally, the following organisations have agreed to encourage their members to participate: EACB, EBF, ESBG, Insurance Europe and ISDA.

What is the objective of the field-test?

This field-test is meant to identify in what circumstances in practice the application of the new requirements in IFRS 9, as modified by the ED, would lead to changes in the current classification and measurement of financial assets under IAS 39; and to gather information on the characteristics of the financial assets involved, their relative significance and the high level reasons for those changes.

When and how will the field-test be conducted?

The field-test starts today and completed questionnaires should be returned by 5 April 2013.

OIC, the National Standard Setters and EFRAG have developed a questionnaire which participants are requested to complete. The questionnaire asks participants to identify those financial assets for which the measurement basis would change as a result of the transition to IFRS 9, as modified by the ED.

The information provided during the field-test will remain confidential. The replies received by the OIC will be sent to EFRAG on an individual basis to allow the aggregation of these replies with those from other countries and their analysis at European level. The replies will be shared anonymously among OIC, the National Standard Setters, the European Commission and the IASB.

Information used in any reports will be presented in such a way that no individual company or person can be identified. However, the list of participants in the field-test will be made public, unless participants explicitly request anonymity. The output of the field-test will be shared between EFRAG, the National Standard Setters, the European Commission and the IASB.

Would you like to participate?

OIC, the National Standard Setters and EFRAG encourage all entities that believe they are significantly impacted by the proposals to participate in the field-test. In particular, banks, insurers and other financial institutions are expected to participate as they are most likely to be involved with large amounts of financial assets.

If you would like to participate in the field-test, please contact Roberta Luly, by telephone 06.6976681 or tothe e-mail address rluly@fondazioneoic.it

Please find herewith attached a copy of the questionnaire.