IFRS 9 Financial Instruments

15 June 2018

BDO has published another “IFRS in practice” publication which sets out practical information about the application of key aspects of IFRS, including industry specific guidance. This publication provides you with necessary information and an in-depth presentation on IFRS 9 Financial Instruments.

IFRS 9 was developed by the International Accounting Standards Board to replace IAS 39 Financial Instruments: Recognition and Measurement. The IASB completed IFRS 9 in July 2014, by publishing a final standard which incorporates the requirements of all three phases of the financial instruments projects, being:

  • Classification and Measurement,
  • Hedge Accounting.

The IAS 39 requirements related to recognition and derecognition were carried forward unchanged to IFRS 9, nevertheless the classification and measurement of the financial instrument and impairment testing changed significantly.

The IASB’s project was initially carried out as a joint project with the US Financial Accounting Standards Board. However, the FASB ultimately decided to make more limited changes to the classification and measurement of financial instruments, and to develop a more US specific impairment model for financial assets.

This IFRS in Practice sets out practical guidance and examples about the application of key aspects of IFRS 9.The upcoming changes in IFRS regulation for financial instruments are substantive and need to be applied for accounting periods starting after 31st December 2017. Please speak to your BDO contact if you would like to discuss any aspects of the publication or contact the BDO Audit office for further information.

This issue of “IFRS in practice” publication as well archive issues can be downloaded from BDO’s Global website: https://www.bdo.global/en-gb/services/audit-assurance/ifrs/ifrs-in-practice