Financial Instruments

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The time to act is now

The IASB issued the final version of the IFRS 9 Financial Instruments standard, replacing IAS 39 and all previous versions of the standard.

The standard includes a model for classification and measurement, an expected credit loss impairment model and a revised approach to hedge accounting. Mandatory adoption of IFRS 9 will begin for annual reporting periods on or after January 1, 2018.

IFRS 9 affects nearly all businesses and may require significant adjustments to your systems, processes and data.

How PwC can help

For many businesses, the new requirements will be complex, and having a transition plan will be key. We realise that change is never easy, but it is important. Call us today to find out how we can help you develop and implement your plan to ensure compliance and effective stakeholder communication by 2018. 




IFRS 9 introduces a new 3-stage relative credit risk model, details of which are outlined in this document. The timing and measurement of impairments is certain to be different under the new approach and may result in earlier recognition of losses. Within this document we summarize some of the more significant differences compared to IAS 39 and the Basel III Framework.


Classification and measurement

The classification and measurement component of IFRS 9 redefines how an entity classifies its financial instruments – at, amortized cost, fair value or fair value through OCI. Key considerations, described in this brochure, include a business model test, examining if payments consist of solely principal and interest and frequency of sales.


Hedge accounting

Less stringent quantitative testing requirements and a broader scope means IFRS 9 will generally be a welcomed change for those with hedging activities and may allow new opportunities to apply hedge accounting. This document includes the key differences related for hedging instruments.


Additional Material

In Brief - Basel Committee guidance on accounting for expected credit losses - first impressions
IFRS 9: In depth - Expected credit losses
IFRS 9: In depth - Expected credit loss disclosures for banking
IFRS 9: In depth - Classification and measurement
Practical guide – General hedge accounting