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Expect the unexpected

ICAEW's Secret Chief Accountant returns to FS Focus to explain the challenges of preparing for the new IFRS 9 Financial Instruments. The road to implementation in 2018 is rife with uncertainty. However this isn't stopping anymore.

Ask a Secret Chief Accountant (SCA) what’s disturbing their sleep and the question “what is significant?” is likely to be high on the list. That is “significance” in the context of the new IFRS 9 impairment model, rather than deeper contemplations on the meaning of life.

Under the new International Financial Reporting Standard (IFRS) for financial instruments, firms are expected to make a provision for lifetime expected losses when there is a “significant increase in the credit risk” compared with the initial recognition associated with a financial asset