White Paper

Implementing an IFRS 9 Solution: Challenges Faced by Financial Institutions

Company: Moody's Analytics

Moody's Analytics case study

Category: Market Risk

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.

Categories related to Market Risk