ISDA has responded to the European Financial Reporting Advisory Group’s (EFRAG) invitation to comment on the EFRAG’s Assessment on Prepayment Options with Negative Compensation, and requests EFRAG to urgently support the EU endorsement of the International Accounting Standards Board’s (IASB) IFRS 9 amendments. The objective of the amendment is to address the classification of particular financial assets with prepayment options when applying IFRS 9 Financial Instruments. More precisely, this issue addresses the situation in which the party that exercises an option to prepay a financial asset could receive a compensation payment from the other party. This is referred to as negative compensation.
Documents (2) for ISDA Responds to EFRAG on Prepayment Options with Negative Compensation
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Expanding Legal Agreement Coverage in the CDM
This paper examines the recent extension of the Common Domain Model (CDM)1 to represent two of the most significant, and previously undeveloped, areas of its legal agreement model: umbrella agreements and contract amendments. Umbrella agreements are widely used to document...
ISDA Omnibus Canadian Representation Letter
On September 2, ISDA published the Omnibus Canadian Representation Letter, which combines previously published representation letters drafted to assist firms in compliance with Canadian trade reporting, business conduct, regulatory margin and clearing classification rules. The Omnibus Canadian Letter is designed...
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On August 31, ISDA and FIA submitted a letter to the US Commodity Futures and Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) on the agencies’ joint request for comment on the implementation of portfolio margining and cross-margining...
Accounting for Carbon Credits: Latest Developments
This paper updates and extends the analysis set out in ISDA’s October 2023 paper on accounting for carbon credits. While preserving the original focus on the accounting treatment of voluntary carbon credits (VCCs) and compliance carbon credits (CCCs), it expands...