IFRS 9: Financial instruments


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.

Spotlight on the new challenges of IFRS 9

This video looks at the main challenges introduced by the new IFRS 9 and their practical implications.


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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

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.


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Moving to an expected credit loss model is a major challenge, particularly for banks and other lendors. Our specialists share their insights and clarify the complicated requirements this long anticipated area of IFRS 9. If you're looking for an overview or a deep dive on a technical issue, our suite of publications, videos and frequently asked questions should help you.    




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Hedge accounting under IFRS 9 will be more attractive than under current guidance. And it may be easier to comply with the requirements although easier' is a relative term. Hedge accounting is still optional but a wider range of instruments qualify as hedging instruments, effectiveness testing is simplified and more things can be hedged. Interested? Our specialists share their insights on how hedge accounting under IFRS 9 will work.


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IFRS 9 publications

IFRS 9 Diagnostic


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PwC's IFRS 9 diagnostic tool

A clarifying assessment of your readiness for transition to IFRS 9

We have launched IFRS 9 for Corporates Diagnostic Tool, which can help you face the challenges of transitioning to IFRS 9.  

The IFRS 9 Diagnostic tool is effectively an online self-assessment tool that provides you with an indication of your readiness for transition to IFRS 9.  It considers the key areas of difference from IAS39 including classification and measurement, impairment, hedge accounting and disclosures, together with the project management, systems and process and controls considerations.

The objective of the tool is to highlight areas for consideration and to identify areas where action is needed to move a transition project forward.  The tool is offered fee of charge, without any further obligation.

Please visit IFRS 9 for Corporates Diagnostic Tool online for more information, and to start your self assessment.

View the IFRS 9 for Corporates Diagnostic Tool

Contact us

Sandra Thompson
Partner, IFRS specialist
Tel: +44 (0) 20 7212 5697

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