Overview of IFRS 9 and the New Impairment Model

A IFRS 9 Financial Instruments is the IASB’s replacement of IAS 39 Financial Instruments: Recognition and Measurement. The Standard includes requirements for recognition and measurement, impairment, derecognition and general hedge accounting.

IFRS 9 issued in 2014 supersedes all previous versions and is mandatorily effective for periods beginning on or after 1 January 2018 with early adoption permitted (subject to local endorsement requirements). For a imited period, previous versions of IFRS 91 may be adopted early, provided the relevant date of initial application is before 1 February 2015 (again, subject to local endorsement requirements).

The new standard is based on the concept that financial assets should be classified and measured at fair value, with changes in fair value recognized in profit and loss as they arise (“FVPL”), unless restrictive criteria are met for classifying and measuring the asset at either Amortized Cost or Fair Value Through Other Comprehensive Income (“FVOCI”).

This eBook caries value insights on;

  • IFRS 9 classification and measurement

  • IFRS 9 impairment

  • Three stages of impairment

  • Twelve-month versus lifetime expected credit losses

Bramasol is the leader in SAP Treasury, Leasing, Revenue Recognition and Office of the CFO Solutions. As the Office of the CFO moves from recording the past and documenting the present, to driving innovation and strategy, Treasury plays a key role in the management of cash, risk and driving innovation. Bramasol is a leader in SAP finance solution delivery.

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