Post-Implementation Review: IFRS 9 Financial Instruments - Impairment


We want to hear your feedback on how well the impairment requirements in NZ IFRS 9 Financial Instruments are working.

Your comments will help inform our feedback to the IASB on its recently-issued Request for Information: Post-Implementation Review of IFRS 9 Financial Instruments – Impairment.

In this context, ‘impairment’ refers to reducing the amount at which a financial asset, such as a receivable or a loan, is shown on the balance sheet – to reflect the risk that the entity might not receive all the cash owed by the debtor or borrower.


Most New Zealand for-profit reporting entities have been applying NZ IFRS 9 Financial Instruments for at least four years now. The IASB is carrying out a post-implementation review of IFRS 9 Financial Instruments, currently focusing on the impairment requirements in that Standard.

IFRS 9 sets out impairment requirements for certain financial assets – including most loans advanced to others, as well as receivables such as trade receivables and lease receivables.

IFRS 9 requires the impairment loss allowance to be determined using the ‘expected credit loss’ model. This forward-looking model replaced the previous ‘incurred credit loss’ model, which was criticised for allowing financial assets to be impaired too late – particularly during the Global Financial Crisis.

We are keen to receive your feedback on the IASB’s Request for Information on the impairment requirements in IFRS 9 – including whether these requirements and the related credit risk disclosures are resulting in useful information for investors, and whether there are any aspects of the requirements that are difficult to apply or have resulted in unexpected costs.

Your feedback is important

We encourage you to read the Request for Information and to share your comments with us. Your comments will help inform to the IASB.

Your comments will help us ensure that, ultimately, NZ IFRS 9 provides for appropriate reporting outcomes for reporting entities in Aotearoa New Zealand.

Accessing the Request for Information


Submissions to the XRB closed on 21 July 2023. Submissions to the IASB closed on 27 September 2023

Thank you to everyone who provided feedback on this consultation.  The New Zealand Accounting Standards Board considered the informal feedback received at as part of developing the Board's comment letter to the IASB. 

The Board's comment letter to the IASB can be viewed below.