Financial instruments
IFRS 9 sets out the requirements for recognising classifying, measuring, impairing and hedging financial instruments.
In Brief
- IFRS 9 Financial Instruments is mandatory for annual periods starting on or after 1 January 2018
- The standard has progressively replaced IAS 39, setting out clearer and simplified requirements for recognition, classification and measurement of financial instruments (including impairment and hedge accounting)
- Domestic equivalents are AASB 9 Financial Instruments and NZ IFRS 9 Financial Instruments
Overview
IFRS 9 Financial Instruments, simplifies the complex requirements of its predecessor, IAS 39/ AASB 139/ NZ IAS 39 Financial Instruments: Recognition and Measurement The revisions also sought to address issues highlighted by the 2008 global financial crisis including:
- the timeliness of recognition of expected credit losses
- the complexity of multiple impairment models
- own credit risk.
The standard retains some of the principles in IAS 39. However, significant changes have been made in three key areas:
- classification and measurement of financial assets
- impairment
- hedge accounting.
IFRS 9 is mandatory for annual periods starting on or after 1 January 2018.The equivalent local standards are AASB 9 Financial Instruments and NZ IFRS 9 Financial Instruments.
Go to the XRB website to access NZ IFRS 9Changes to consider
Related downloads
- Why corporates should take note of IFRS 9 impairment implementation issues (pdf, 0.4 mb)
- Why hedge accounting may finally make sense (pdf, 0.5 mb)
- Practical challenges of the new IFRS 9 impairment model for lenders (pdf, 0.7 mb)
- Five questions you should be asking about the hedging guidance in AASB 9 (pdf, 0.8 mb)
- Perspective article: “Why the use of options as hedging instruments is more appealing under AASB 9" (pdf, 0.1 mb)
- Perspective article: “Practical challenges of applying the IFRS 9 impairment model to trade and lease receivables" (pdf, 0.1 mb)