IFRS 9 - Financial Instruments much awaited amendment is finally out on November 19, 2013. The entities which need to deal with the financial instruments in line with IFRS, are probably aware of multiple standards covering this really titanic topic: IAS 39, IFRS 9, IFRS 7, IAS 32 and partially IFRS 13.
The new standard - IFRS 9 - is still under development.
Let's see what are the 3 main changes brought in the amended IFRS 9:
- Mandatory effective date of IFRS 9 (1 January 2015) was removed. It means that you can apply old IAS 39 after 31-12-2014
- Financial Liabilities (Own Debt) at Fair Value has new requirements for the accounting and presentation of changes in the fair value when own debt is measured at fair value
- New hedge accounting rules!
New hedging rules were long-awaited, because the older rules in IAS 39 are really strict and hard to apply.
Further post will explain Hedge Accounting in brief..Stay glued:)
