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IFRS 9 Financial instruments

IFRS 9 Financial Instruments sets out the requirements for recognising and measuring financial assets, financial liabilities, and some contracts to buy or sell non-financial items. The standard was published in July 2014 and is effective from 1 January 2018.

Full text standard

Unaccompanied version of IFRS 9
The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

This unaccompanied version does not include additional content that accompanies the full standard, such as illustrative examples, implementation guidance and bases for conclusions.

IFRS 9 summary and timeline

Looking for the synopsis? Our IFRS 9 summary and timeline are now on a separate page, featuring information on current proposals and a timeline of IASB updates.

Which version of the standard?

Financial Reporting Faculty members have unlimited online access to the consolidated edition of IFRS and amendments through the IASB's eIFRS service. Please log into eIFRS to access electronic versions of the standards. Or find out more about how to join the faculty.

The ICAEW Library also offers members and students access to the print versions of the latest IFRS Blue and Red Books. Contact us by telephone on +44 (0)20 7920 8620, by web chat or by email at library@icaew.com


ICAEW guides and support

Factsheets

IFRS 9 Financial Instruments – Hedge accounting πŸ”’
Financial Reporting Faculty, 8 August 2019
This factsheet outlines the hedge accounting requirements of IFRS 9 Financial Instruments, comparing them with those of IAS 39. It also contains practical tips to help with implementation.

IFRS 9 Financial Instruments – Overview πŸ”’
Financial Reporting Faculty, 19 October 2018
This factsheet outlines the key requirements of IFRS 9 in respect of classification and measurement of financial instruments, including impairment of financial assets, and compares those requirements with those of its predecessor, IAS 39 Financial Instruments: Recognition and Measurement. Its focus is on how IFRS 9 will affect non-financial sector entities. 

Debt for equity swaps πŸ”’
Financial Reporting Faculty, 5 June 2018
This factsheet explains how to account for 'debt for equity swaps' in accordance with IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments. These requirements will usually result in a profit (or, less commonly, a loss) when debt is renegotiated on terms which provide for an issue of equity instruments. In addition, the factsheet considers the impact of company law for UK companies extinguishing debt with equity.

Annual factsheets

These exclusive factsheets, produced annually by the Financial Reporting Faculty for its members, highlight all new and modified requirements for preparers of IFRS accounts. Each annual edition focuses primarily on new requirements with mandatory application for preparers with periods beginning on or after 1 January of that year.

2019 IFRS accounts πŸ”’
Financial Reporting Faculty, 27 June 2019

2018 IFRS Accounts πŸ”’
Financial Reporting Faculty, 6 August 2018

2017 IFRS Accounts πŸ”’
Financial Reporting Faculty, 30 April 2018

2016 IFRS Accounts πŸ”’
Financial Reporting Faculty, 30 January 2017

Articles

The final countdown πŸ”’
Helen Shaw, By All Accounts, July 2017
In the second section of this article from the Financial Reporting Faculty's magazine, Helen Shaw, a director at Deloitte, highlights some issues non-financial sector entities will need to consider as the effective date of IFRS 9 draws ever nearer.

Making sense of macro hedging πŸ”’
Gabriela Martinez, By All Accounts, July 2015
An overview of the IASB's project on macro hedging by Gabriela Martinez, a director at PwC.

The hedge maze – Finding the Way πŸ”’
Jane Hurworth, By All Accounts, July 2014
Jane Hurworth, executive director at EY, outlines some of the practical implications of the IASB's new general hedge accounting model. Executives from HSBC and Shell also give their view.

Webinars

IFRS Update June 2018 πŸ”’
Financial Reporting Faculty, 19 June 2018
This webinar provides a summary of new and revised standards applicable in 2018 and beyond. It looks at the lessons we can learn from those already implementing IFRS 9 and IFRS 15, the impact of IFRS 16 on 2018 financial statements, IFRS 17 for those who are not insurers, and other IFRS amendments and new IFRICs.

IFRS 9 Financial Instruments - the final countdown πŸ”’
Financial Reporting Faculty, 23 November 2017
This webinar for Financial Reporting Faculty members has been specifically designed for those in the non-financial sector. It covers the standard’s key requirements before focusing on practical issues and implementation challenges.

Applying IFRS 9 impairment model in practice πŸ”’
Financial Reporting Faculty, 25 May 2016 
The move from IAS 39’s incurred loss model to IFRS 9’s expected loss model has been widely heralded as a step in the right direction. But applying the standard in practice is proving challenging for many banks. This Financial Reporting Faculty webinar looks at some of the issues they are facing.

The impact of IFRS 9 on the banking sector πŸ”’
Financial Reporting Faculty, 21 April 2015
This webinar for Financial Reporting Faculty members in the banking sector provides a overview of the changes that will take effect when the new standard becomes effective in 2018.

IFRS 9 Financial Instruments: What non-financial sector entities need to know πŸ”’
Financial Reporting Faculty, 2 December 2014
This webinar for Financial Reporting Faculty members in the non-financial sector provides a clear, concise overview of the changes that will take effect when the new requirements become mandatory.

Financial instruments - an update on replacing IAS 39 πŸ”’
Financial Reporting Faculty, 28 January 2014
This webinar guides Financial Reporting Faculty members through the changes set to take place when IFRS 9 Financial Instruments becomes mandatory.


eBooks

Access to eBooks is only available to ICAEW members and ACA students – please log in to view these titles.

IFRS 2018: Interpretation and application of IFRS standards πŸ”’
PKF (2018)
This Wiley guide has been fully updated to help practitioners apply and comply with the latest international financial reporting standards. It provides detailed guidance along with illustrative examples. The chapter on financial instruments covers:

  • Recognition, measurement and derecognition of financial instruments
  • Financial liabilities
  • Subsequent measurement of financial liabilities
  • Embedded derivatives
  • Financial instruments measured at amortised cost
  • Fair valuation gains and losses
  • Impairment of financial instruments
  • Hedge accounting
  • Effective date and transition requirements of IFRS 9
  • Disclosures

If you have any difficulties using these eBooks, please see our Help and support advice or contact library@icaew.com.


Example accounts

IFRS model accounts and disclosure checklists
Online disclosure checklists, general IFRS illustrative statements and compliance questionnaires collected by the ICAEW Library.

Company Reporting (Croner-i)

The ICAEW Library can provide examples of real-life company reports to help keep you up-to-date with reporting practices and benchmark your financial reporting compliance. Company Reporting analyses current IFRS disclosures from public companies, organised by industry sector. It also provides detailed monthly Common Practice reports on specific issues.

Contact us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com to get any documents from Company Reporting.


External resources

Some guides and comparisons that we link to may pre-date the latest amendments to this standard. While these resources contain useful information, please treat them with appropriate caution.

IFRS 9 Thematic Review: Review of Interim Disclosures in the First Year of Application
FRC, November 2018
Report summarising the FRC's findings with excerpts of published interim accounts illustrating good examples of disclosure, main issues where disclosures could be improved, and key points to consider. The report discusses non-banking entities, as well as classification and measurement, impairment, judgements and estimation uncertainty for banks.

PwC's Demystifying IFRS 9 for corporates series
Video series from PwC looking at a range of issues, including intra-group loans, financial liabilities and hedge accounting.

IFRS 9: Financial instruments (PwC hub)
Series of publications from PwC offering guides and commentary on IFRS 9, including practical guides focusing on industry sectors such as real estate, banking, pharmaceuticals and football.

Disclosures required in interim financial statements on the initial adoption of IFRS 9
PwC, July 2018
Bulletin highlighting who may be impacted and suggested disclosures.

IFRS 9 disclosures by banks in 2018 interim reporting and transition documents
PwC, July 2018
Guide explaining the applicable guidance, what it means in practice when looking at the appropriate extent of disclosure, and other factors that may be relevant.

Impairment of financial instruments under IFRS 9
EY, April 2018
Guide giving an overview of IFRS 9 impairment requirements and detailed discussion covering measurement of expected credit losses, determining significant increases in credit risk, expected credit loss calculations, modified financial assets, financial assets measured at fair value, trade receivables, revolving credit facilities, intercompany loans, presentation, and disclosures.


Further reading

Manuals and handbooks

The ICAEW Library stocks the latest IFRS handbooks and manuals. You can browse all our books on IFRS 9 and financial instruments or request any of the following popular titles by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

International GAAP 2019
EY, Wiley, 2019
Comprehensive reference guide to interpreting and implementing IFRS, featuring detailed analysis of technical accounting issues accompanied by worked examples and illustrations taken from the actual financial statements of companies that report under IFRS.
Request this book

Manual of accounting: IFRS for the UK 2019
PwC, Tolley, 2018
Practical guidance on the standards and the accounting requirements of UK law applicable to UK users of IFRS. This manual was published in November 2018 and includes key updates from amendments, annual improvements and the revised conceptual framework issued in March 2018.
Request this book

Insights into IFRS 2018–19
KPMG, Thomson Reuters, 2018
Manual providing practical guidance with an emphasis on the real-life application of IFRS, with examples based on actual questions that have arisen in practice around the world. This book deals with standards issued by the IASB as at 1 August 2018.
Request this book

iGAAP 2018: Financial instruments – IFRS 9 and related standards (Volume B)
Deloitte, Croner-i, 2018
Practical and comprehensive guidance for entities currently reporting under IFRS and those considering whether to move to IFRS in the near future specifically covering IAS 32, IFRS 1, IFRS 7, IFRS 9 and IFRS 13. This manual deals with standards issued by the IASB as at 1 September 2017.
Request this book

iGAAP 2018: A guide to IFRS reporting (Volume A)
Deloitte, Croner-i, 2018
Practical and comprehensive guidance for entities currently reporting under IFRS and those considering whether to move to IFRS in the near future. This manual deals with standards issued by the IASB as at 1 September 2017.
Request this book

GAAP 2018: UK reporting - IFRSs (Volume C)
Deloitte, Croner-i, 2018
Comprehensive manual explaining how to apply IFRS, focusing on practical implementation issues with commentary and analysis of issues specific to UK companies. This volume deals with standards issued by the IASB as at 1 September 2017.
Request this book

Wiley IFRS 2018: Interpretation and application of IFRS standards
PKF, Wiley, 2018
Reference manual providing full coverage of the latest standards and thorough guidance for implementation, featuring practical tools and insight from a practitioner's perspective.
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Accounting for financial instruments: A guide to valuation and risk management
E.Camilleri, Routledge, 2017
This book is about the accounting and regulatory framework associated with the acquisition and disposal of financial instruments; how to determine their value; how to manage the risk connected with them; and ultimately compile a business valuation report.
Request this book 

Articles

The ICAEW Library subscribes to over 160 current journals and magazines, as well as offering access to 1,800 key UK and international business, management and trade titles online. You can browse articles on IFRS 9 and financial instruments or request any of the selected articles below by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

Looking ahead to IFRS 9
T.Clifford, FS Focus, July/August 2016
Banks will need new data and techniques for forecasting expected credit losses when the revised IFRS 9 is introduced from 2018. This article assesses the implications for risk reporting.

IFRS 9: ready or not
D.Burke, Accountancy, April 2016
IFRS 9 compliance needs careful consideration and planning to meet the expectations of auditors. The first in a series of articles about the coming changes to IFRS 9, this article covers Stage 2 transfer criteria and disclosures.

IFRS 9: questions for insurers
K.Griffith, FS Focus, January 2016
Explains some of the questions that companies need to consider as they prepare for the new accounting standard. There is a choice over when insurers can adopt but the decision might not be straightforward. It is unlikely that UK insurance groups will qualify for deferral, but companies who do may choose to adopt the new standard in 2018 anyway.

Find out more about how you can borrow books from the ICAEW Library or get articles and documents sent to you by email, post or fax.


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