The introduction of new requirements in IFRS 9 Financial
Instruments will be a significant change to the financial
reporting of banks. It will impact many stakeholders including
investors, regulators, analysts and auditors. Given the importance
of banks in the global capital markets and the wider economy, the
effective implementation of the new standard has the potential to
benefit many. Conversely, a low-quality implementation based on
approaches that are not fit for purpose has the risk of undermining
confidence in the financial results of the banks.
The International Accounting Standards Board (IASB) published
the final version of IFRS 9 Financial Instruments in July 2014.
IFRS 9 replaces IAS 39 Financial Instruments: Recognition and
Measurement, and is effective for annual periods beginning on or
after January 1, 2018. Earlier application is permitted. The new
standard aims to simplify the accounting for financial instruments
and address perceived deficiencies
