IFRS 9 Financial Instruments
IFRS 9 came into effect for accounting periods beginning on or after 1 January 2018 and we are immediately seeing the significant impact that the standard is having on banks and other financial institutions:
- The forward-looking expected credit loss model;
- The new classification and measurement requirements for financial assets; and
- The application of the new hedge accounting requirements to more broadly align with risk management practices.
Already, however, the standard is being subject to proposed amendments following implementation issues and regulatory changes being made in the financial services sector.
Non-financial companies are not, however, immune to the effects of the new standard, albeit they will be impacted to a lesser extent.
Applying IFRS 9
In collaboration with our highly experienced financial services team, we can assist your organisation to understand and implement IFRS 9 with an offering of transitional support, expected credit loss modelling, disclosure support, impact reviews, bespoke training, and contract reviews.