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IFRS 9 summary and timeline

A summary of IFRS 9 Financial Instruments, including information on current proposals and a timeline of past amendments, announcements, exposure drafts and consultations.


Looking for the standard?

Practical guidance on this standard is now on our main IFRS 9 Financial Instruments page, with links to eIFRS, the full text standard, eBooks and other resources.

IFRS 9 was issued in November 2009, and subsequently reissued to incorporate new requirements in October 2010, November 2013 and July 2014. IFRS 9 is now complete and when effective will replace IAS 39.

Measurement of financial assets

The new standard uses a single approach to determine whether a financial asset is measured at amortised cost or fair value; the approach in IFRS 9 is based on how an entity manages its financial instruments (its business model) and the contractual cash flow characteristics of the financial assets. Gains and losses on those financial assets classified as measured at fair value are either recognised in profit or loss or in other comprehensive income. The final issue of IFRS 9 in July 2014 made limited amendments to the previous IFRS 9 classification rules, such that:

  • Debt instruments meeting given criteria must be measured at amortised cost unless designated as measured at FVTPL.
  • Debt instruments meeting other given criteria must be measured at FVTOCI unless designated as measured at FVTPL.
  • All other debt instruments are measured at FVTPL.
  • All equity instruments are measured at FVTPL unless they are not held for trading and an entity has elected to measure them at FVTOCI, in profit or loss except where an entity has elected to recognise gains and losses on an equity investment in other comprehensive income.

Measurement of financial liabilities

The standard does not change the basic accounting model for financial liabilities under IAS 39. Two measurement categories continue to exist: fair value through profit or loss and amortised cost. IFRS 9 requires gains and losses on financial liabilities designated as at fair value through profit or loss to be split into the amount of change in the fair value that is attributable to changes in the credit risk of the liability, which is presented in other comprehensive income, and the remaining amount of change in the fair value of the liability, which is presented in profit or loss. Amounts presented in other comprehensive income are not subsequently reclassified to profit or loss. This requirement to recognise own credit risk-related fair value gains and losses in other comprehensive income may be applied by entities in isolation without applying the other requirements of IFRS 9 at the same time.

Derivatives and hedge accounting

All derivatives are measured at fair value with gains and losses recognised in profit or loss, unless hedge accounting is applied. Embedded derivatives are only separated from the host contract where that contract is not an asset within the scope of IFRS 9. Otherwise the entire hybrid contract is accounted for as one instrument.

Derecognition and hedge accounting

The standard also provides rules for the derecognition of both financial assets and liabilities, and the reclassification of financial assets. Reclassification of financial liabilities is not allowed.

Additions to the standard in November 2013 put in place a new model for hedge accounting that closely aligns the relevant accounting treatment with risk management activities. The new model:

  • replaces the IAS 39 hedge effectiveness test with an objectives-based test that focuses on the economic relationship between the hedged item and hedging instrument;
  • allows that a risk component is designated as the hedged item for non-financial items as well as financial items;
  • allows the designation of more groups of items as the hedged item;
  • allows items such as the time value of an option to be accounted for as a cost of hedging;
  • introduces more extensive and meaningful disclosure requirements.


On completion of the standard in July 2014, guidance on impairment was incorporated into IFRS 9. The new requirements are based on an expected loss impairment model, which replaces the incurred loss model of IAS 39. Under this new model, expected credit losses are accounted for from the date when financial instruments are first recognised. Entities are required to recognise 12-month expected credit losses, or, where credit risk has increased significantly since initial recognition, lifetime expected credit losses.

Current proposals

When a financial liability is exchanged or modified, it is derecognised and a new liability recognised if the new contractual terms are substantially different from the old contractual terms. A quantitative 10% test is applied to assess whether this is the case. As part of the next cycle of annual improvements the Board proposes to amend IFRS 9 to clarify which fees and costs are included in this 10% test.


Date Update
12 October 2017 IASB issues Prepayment Features with Negative Compensation (amendments to IFRS 9)
To be applied retrospectively for years beginning on or after 1 January 2019.
21 April 2017 IASB proposes minor amendments to IFRS 9 to aid implementation
Press release issued on 21 April 2017 announcing amendment proposals.
12 September 2016 IASB issues Applying IFRS 9 with IFRS 4 amendments to IFRS 4
Applicable when IFRS 9 is first applied (overlay approach) or for annual periods beginning on or after 1 January 2018 (deferral approach).
24 July 2014 IASB reissues IFRS 9 Financial Instruments
Effective for annual periods starting on or after 1 January 2018
19 November 2013 IASB issues IFRS 9 Financial Instruments (Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39)
Effective date of IFRS 9 removed.
16 December 2011 IASB issues Mandatory Effective Date and Transition Disclosures (amendments to IFRS 9)
Amended effective date to 1 January 2015 (later removed).
28 October 2010 IASB reissues IFRS 9 including requirements on financial liability accounting
Originally effective for annual periods starting on or after 1 January 2013 (date later removed).
12 November 2009 IASB issues IFRS 9 Financial Instruments covering classification and measurement of financial assets
Originally effective for annual periods starting on or after 1 January 2013 (date later removed).