IFRS 9
IFRS 9 Financial Instruments brings fundamental change to financial instrument accounting as it replaces IAS 39 Financial Instruments: Recognition and Measurement. Our specialists explain the new expected credit loss model for financial asset impairment, the impact of the business model on accounting and the consequences of fewer categories for assets. There are a number of decisions and choices to be made at transition to the new standard but some good news: hedge accounting rules have been eased. Banks and financial institutions are most affected but corporates need to consider the new requirements as well.
The video is presented by Gail Tucker, Financial Instruments Specialist in PwC's Global Accounting Consulting Services and John Mc Donnell, partner in PwC's Banking Assurance & Advisory Services.
IFRS9
The video is presented by Gail Tucker, Financial Instruments Specialist in PwC's Global Accounting Consulting Services and John Mc Donnell, partner in PwC's Banking Assurance & Advisory Services.
Our guidance on IFRS 9 follows the three main aspects of the standard; classification and measurement of financial assets, applying the expected credit loss model to financial assets and hedge accounting.
- Classification and measurement
- Impairment
- Hedging
Classification and measurement
IFRS 9 will require financial assets to be measured at amortised cost or fair value. Fair value changes will be in profit or loss or taken to OCI with no recycling. Fair value through OCI is a consequence of the business model for some assets but an irrevocable election at initial recognition for other assets. This may be the least complex area of the new standard but it there will be significant impacts. Our specialists share their insights in our suite of publications, videos and tools.
