FD Intelligence

Quick guide to IFRS 9 Financial Instruments (2014)

Read our summary of the new IFRS 9 accounting standard and what it means for your financial reporting and systems. 

Following several years of development, the International Accounting Standards Board (IASB) has finished its project to replace IAS 39 Financial Instruments: Recognition and Measurement by publishing IFRS 9 Financial Instruments (2014).

IFRS 9 (2014) fundamentally rewrites the accounting rules for financial instruments. It introduces a new approach for financial asset classification and replaces the now-discredited incurred loss impairment model with a more forward-looking expected loss model. This is in addition to the major new requirements on hedge accounting (PDF) [ 5320 kb ] that we reported on at the end of 2013.

While IFRS 9’s mandatory effective date of 1 January 2018 may seem a long way off, we strongly suggest that companies start evaluating the impact of the new accounting standard now. As well as the impact on reported results, many businesses will need to collect and analyse additional data and implement changes to systems.

Our special edition of IFRS News outlines the new IFRS 9 (2014) requirements (PDF) [ 1308 kb ], and the benefits and challenges that it will bring. 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
  • revised classification
  • measurement requirements.

For more information about how this new standard will impact your business, contact your usual Grant Thornton contact or Jake Green, Director of Financial Reporting, at jake.green@uk.gt.com.