Implementing an IFRS 9 Solution: Challenges Faced by Financial Institutions

As part of the response to the last financial crisis, the International Accounting Standards Board (IASB) recently issued IFRS 9 to resolve the weaknesses of IAS 39. Under IAS 39, incurred loss resulted in credit loss recognition that was “too little, too late.”

Improvements under IFRS 9 include a logical model for the classification and measurement of financial instruments, a forward-looking expected credit loss impairment model, and a substantially reformed approach to hedge accounting.

This white paper provides an overview of the new standard and analyses the major challenges financial institutions will face in ensuring compliance.