IFRS 9: ‘Financial Instruments’ is now complete

Recognition and Measurement’ by publishing IFRS 9 ‘Financial Instruments (2014)’

Following several years of development, the IASB has finished its project to replace IAS 39 ‘Financial Instruments: Recognition and Measurement’ by publishing IFRS 9 ‘Financial Instruments (2014)’. This special edition of IFRS News takes you through the requirements of the new Standard. It covers all of the individual chapters that make up the Standard but focuses in particular on the chapters added in July 2014 dealing with:

  • expected credit losses
  • the revised classification and measurement requirements.

“IFRS 9 (2014) fundamentally rewrites the accounting rules for financial instruments. A new approach for financial asset classification is introduced, and the now discredited incurred loss impairment model is replaced with a more forward-looking expected loss model. This is all in addition to the major new requirements on hedge accounting that we reported on at the end of 2013.

While IFRS 9’s mandatory effective date of 1 January 2018 may seem a long way off, we strongly suggest that companies should start evaluating the impact of the new Standard now. As well as the impact on reported results, many businesses will need to collect and analyse additional data and implement changes to systems. This special edition of IFRS News will help you to do so by outlining the new Standard’s requirements, and the benefits and challenges that it will bring.”

Andrew Watchman
Global Head – IFRS

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