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IFRS 9 is an International Financial Reporting Standard (IFRS) published by the International Accounting Standards Board (IASB). It addresses the accounting for financial instruments . It contains three main topics: classification and measurement of financial instruments, impairment of financial assets and hedge accounting .
The IASB and FASB made joint efforts to devise a common impairment model, but the FASB eventually decided to propose an alternative scheme in January 2011. [5] The IASB issued a new exposure draft in January 2013, [5] which later led to the adoption of IFRS 9 in July 2014, [6] effective for annual periods beginning on or after January 1, 2018. [7]
Starting in 2018, this treatment will be overridden by IFRS 9, according to which, for equity instruments, the revaluation gain or loss will be recognized under Other Comprehensive Income whether it be due to normal market fluctuations or impairment. Further, the revaluation gains or losses on equity instruments from Other Comprehensive Income ...
According to IFRS 9, if a financial asset is held with the intention of collecting contractual cash flows on specified dates, and those cash flows are solely payments of principal and interest, then the asset should be measured at amortized cost. Accordingly, a loan receivable is measured at amortized cost using the effective interest method.
International Federation of Accountants [9] Ray J. Ball described the expectation by the European Union and others that IFRS adoption worldwide would be beneficial to investors and other users of financial statements, by reducing the costs of comparing investment opportunities and increasing the quality of information. [10]
IFRS 9: IAS 40: Investment Property 2000 January 1, 2001: IAS 41: Agriculture: 2000 January 1, 2003: IFRS 1: First-time Adoption of International Financial Reporting Standards 2003 January 1, 2004: IFRS 2: Share-based Payment: 2004 January 1, 2005: IFRS 3: Business Combinations: 2004 April 1, 2004: IFRS 4: Insurance Contracts: 2004 January 1 ...
It was released by the International Accounting Standards Board (IASB) in 2003, and was replaced in 2014 by IFRS 9, which became effective in 2018. It was adopted by the European Union in 2004. [1] In 2005, the EU also introduced the fair value and hedging provision of the amended version of IAS 39. [2] [3]
In finance, bad debt, occasionally called uncollectible accounts expense, is a monetary amount owed to a creditor that is unlikely to be paid and for which the creditor is not willing to take action to collect for various reasons, often due to the debtor not having the money to pay, for example due to a company going into liquidation or insolvency.