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IFRS 9 is effective for annual periods beginning on or after 1 January 2018 with early application permitted. IFRS 9 specifies how an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items.
requirements in IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 relating to: • changes in the basis for determining contractual cash flows of financial assets, financial liabilities and lease liabilities;
IFRS 9 'Financial Instruments' issued on 24 July 2014 is the IASB's replacement of IAS 39 'Financial Instruments: Recognition and Measurement'. The Standard includes requirements for recognition and measurement, impairment, derecognition and general hedge accounting.
IFRS 9 has three classification categories for debt instruments: amortised cost, fair value through other comprehensive income (‘FVOCI’) and fair value through profit or loss (‘FVPL’).
IFRS 9 includes the following simplifications for impairment of trade receivables, contract assets and lease receivables: Situation. Proposed Approach. Trade receivables and contract assets of one year or less or those without a significant financing component.
IFRS 9 is an International Financial Reporting Standard (IFRS) published by the International Accounting Standards Board (IASB). It addresses the accounting for financial instruments. It contains three main topics: classification and measurement of financial instruments, impairment of financial assets and hedge accounting.
In November 2009 the IASB issued IFRS 9 (2009), the first milestone in the project to replace IAS 39. This standard required the classification and measurement of financial assets into only two categories: amortised cost, and fair value through profit or loss (‘FVPL’).
IFRS 9 contains an option to designate, at initial recognition, a financial asset as measured at FVTPL if it would eliminate or significantly reduce an ‘accounting mismatch’. This can arise when measuring assets or liabilities, or recognising the gains and losses on them, on different bases.
Gain useful insights and practical examples when navigating IFRS 9 impairment requirements for trade receivables; Learn how to disclose the new adoption of accounting standards in interim financial statements.
IFRS 9 Financial Instruments introduces a new classification model for financial assets that is more principles-based than the requirements under IAS 39 Financial Instruments: Recognition and Measurement.