Company: Moody's Analytics
Published: 14 June 2016
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.