IFRS (International Financial
The International Accounting Standards Board (IASB) issued the final version of IFRS 9 Financial Instruments on 24 July 2014. IFRS 9 brings together the classification and measurement, impairment and hedge accounting phases of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement and is expected to be effective for annual periods beginning on or after 1 January 2018.
Accounting for dynamic risk management, commonly referred to as macro hedging, does not form part of IFRS 9 and is a separate project.
IFRS 9 introduces principles-based requirements for classification and measurement. Also, the IASB has addressed the key concern that arose as a result of the financial crisis that the incurred loss model in IAS 39 contributed to the delayed recognition of credit losses, by issuing the new impairment requirements that are based on a more forward-looking expected credit loss model. The hedge accounting requirements in IFRS 9 were developed with a view to providing better information about the management activities that involve hedging.
EY thought leadership
Classification and measurement
- Applying IFRS: IFRS 9 for non-financial entities
- Applying IFRS: Classification of financial instruments under IFRS 9
- IFRS Developments Issue 86: IASB issues IFRS 9 Financial Instruments – classification and measurement
- Comment letter: Limited amendments to IFRS 9 Proposed amendments to IFRS 9 (2010) (March 2013)
Financial Instruments – impairment
- IFRS updates and challenges for UK banks (July 2016)
- EY IFRS 9 impairment banking survey (September 2016)
- The Basel Committee Guidance on credit risk and accounting for expected credit losses
- Applying IFRS: ITG discusses IFRS 9 impairment issues at December 2015 ITG meeting
- IFRS Developments Issue 112: ITG discusses IFRS 9 impairment issues
- Applying IFRS: Impairment of financial instruments under IFRS 9 (December 2014)
- IFRS Developments Issue 105: The ITG discusses IFRS 9 impairment implementation issues
- Basel Committee proposes guidance on accounting for expected credit losses
- IFRS Developments Issue 87: IASB issues IFRS 9 Financial Instruments – expected credit losses
- IFRS Developments Issue 74: IASB completes redeliberations on expected credit loss model; sets 2018 effective date
Financial instruments – hedging
- IFRS Developments Issue 109: Next steps for the accounting for dynamic risk management project
- Thought Center webcast: Hedge Accounting for non-financial entities (January 2014)
- Applying IFRS: Hedge accounting under IFRS 9
- IFRS Developments Issue 68: The IFRS issues IFRS 9 (2013) - hedge accounting is now complete
- IFRS Developments, Issue 62: Amendments to IAS 39 - continuing hedge accounting after novation
Financial instruments – other
- IFRS Developments Issue 77: IASB issues a discussion paper on accounting for macro hedging
- Applying IFRS: Credit valuation adjustments for derivative contracts
- IFRS changes impacting the banking industry. An update for the CFO (May 2013)
- Applying IFRS, Offsetting financial instruments: clarifying the amendments (May 2012)
Feedback on these materials is welcome.