IFRS 9 “Financial Instruments”: Background, Development and Expected Impact

Abstract

This work is concerned with the complete version of IFRS 9 “Financial Instruments”. First, the requirements and issues of the preceding Standard IAS 39 “Financial Instruments: Recognition and Measurement” are presented. The second chapter offers a detailed analysis of the milestones in the development of IFRS 9 (i.e. Discussion Papers and Exposure Drafts), providing insight into the debate that led to the final content. The third chapter moves on to describing the final version of IFRS 9, its requirements and guidance. The final chapter assesses the extent to which IFRS 9 improves financial instruments accounting and its expected implications on businesses (especially banks).