The Reference Group discussed the presentation of impairment (including impairment reversals) and debt write-offs (including recoveries from debt write-offs). Impairment and write-off are different events and are presented separately in the Statement of Financial Performance (SoFPer) to reflect their nature, where an entity presents expenses by nature.

The presentation of impairment and impairment reversals can be presented as a net amount as these represent movements in the same estimate.

Debt write-offs and recoveries from debt write-offs are presented separately as the recoveries of debts previously written off represents a subsequent event to the initial write-off.

Materiality must be applied to determine the line items to present on the face of the SoFPer.

The Reference Group also discussed the amendments to IFRS 9, Financial Instruments relating to the classification of financial instruments with ESG-linked features. The additional guidance on the assessment of the “solely payments of principal and interest” test was found to be useful by the Group. Access the presentation here.