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IFRS News special edition on IFRS 9

Armen Hovhannisyan Armen Hovhannisyan

IFRS 9 (2014) fundamentally rewrites the accounting rules for financial instruments, introducing a new approach for financial asset classification and replacing the now discredited incurred loss impairment model with a more forward-looking expected loss model.

The IASB decided to replace IAS 39 in response to strong criticisms of that Standard in the aftermath of the global financial crisis of 2007/8. The first key milestone was reached in November 2009 with the publication of new classification and measurement requirements for financial assets (IFRS 9 (2009)). At that time it appeared that the remaining requirements would follow quickly. Perhaps unsurprisingly, given the complex and often controversial nature of the subject matter, the completion of IFRS 9 has however taken almost five more years.

This special edition of IFRS News outlines the new Standard’s requirements. It covers all of the individual chapters that make up the Standard but focuses in particular on the chapters added in July 2014 dealing with:

  • expected credit losses
  • the revised classification and measurement requirements