Effective from 1 January 2018, IFRS 9 Financial Instruments is one of the most complex and revolutionary standards even for non-financial institutions.
If you postponed implementation of IFRS 9 till the last moment, then it is your time. The standard IAS 39 no longer applies and the financial statements for the year ended 31 December 2018 need to be prepared under IFRS 9.
The most significant change relates to the provisioning method under the Expected Credit Losses model (ECL). The standard requires banks and other companies to recognise ECL and to update the amount of ECL recognised at each reporting date to reflect changes in the credit risk of financial assets based on the general and simplified approach. Both approaches are forward-looking and eliminate the threshold for the recognition of ECL, so that it is no longer necessary for a “trigger event” to have occurred before credit losses are reported.
Whether its during an audit or we are engaged to prepare financial statements under IFRS on behalf of our clients we assist entities in developing their own procedures and methodology for the implementation of the IFRS 9 standard addressing classification, measurement and impairment.
We have designed and tailored appropriate financial reporting solutions for medium and small size companies to assist with the preparation of the financial statements under International Financial Reporting Standards IFRS.
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