Global Standards for the world economy

Tuesday 23 July 2019

Banner graphic

Project news


The Interpretations Committee will consider this issue further at a future meeting

 07 September 2016


The Interpretations Committee received a request to clarify which fees and costs to include in the '10 per cent' test for the purpose of derecognition of a financial liability.

At its meeting in May 2016, the Interpretations Committee issued a tentative agenda decision. In that tentative agenda decision, the Interpretations Committee noted that when applying paragraphs B3.3.6 of IFRS 9 and AG62 of IAS 39 in carrying out the '10 per cent' test, an entity includes only fees paid or received between the entity and the lender, and fees paid or received by either the entity or the lender on the other's behalf.

At this meeting, the Interpretations Committee reconfirmed the technical conclusions reached in May 2016 and summarised in the tentative agenda decision. The Interpretations Committee voted to recommend to the Board that it propose an amendment to IFRS 9 and IAS 39 as part of the next Annual Improvements Cycle. However, the Interpretations Committee then agreed that further discussion was necessary before concluding whether to recommend an Annual Improvement or issue an agenda decision.

Next steps

The Interpretations Committee will consider this issue further at a future meeting.