The
new standard IFRS 9 Financial Instruments will replace the older standard IAS 39 in January
2018 and it practically means that if you are affected, you need to start getting ready NOW.
Why?
Because your
comparative period starts in January 2017 and you will need to restate the numbers for 2017 in line with the new standard.
New
IFRS 9 will be effective in many jurisdictions, including the European
Union and UK, Australia, Canada, Singapore and Hong Kong, etc.
China
also launched a working draft in August 2016 that is consistent with the
IFRS 9. Even the US capital market also accepts the IFRS reporting of
those
foreign companies.
The
IFRS 9 will enormously affect the financial institutions, but not only them. And, it takes a LOT of hard work!
According
to the Deloitte’s survey, the implementation project will probably take 3 years in some institutions.
That’s a LOT!
In
this article, you will learn about:
- The
biggest weaknesses in the older standard IAS 39,
- The
main changes introduced by IFRS 9,
- Key
points for the successful implementation of IFRS 9 into your business.
This
article was written by Mr. Wang Jun Spark and I just need to add that
even if you don’t work in the financial institution (like a bank), you
should still keep your eyes open.
The
reason is that many IFRS 9 rules affect also trading companies, leasing companies and many other businesses.
Now,
if you feel this article could help your colleague or friend, please share it.
And,
we would love to read about your own IFRS 9 implementation challenges,
whether you work in a bank, some other financial institution or in the
non-financial institution with IFRS 9 impact. Please leave us a comment
below this article. Thank you!
Take
care!
Silvia,
IFRSbox.com
