March 2016


The Grant Thornton International Ltd IFRS Team has published Get ready for IFRS 9 – The impairment requirements, the second issue in a series of publications intended to help you prepare for IFRS 9 (2014) Financial Instruments.

IFRS 9 (2014) fundamentally rewrites the accounting rules for financial instruments. While IFRS 9’s mandatory effective date of January 1, 2018 may seem a long way off, companies really need to start evaluating the impact of the new standard now. As well as the impact on reported results, many companies will need to collect and analyze additional data and implement changes to systems.

Under IFRS 9, recognition of impairment no longer depends on a reporting entity first identifying a credit loss event. IFRS 9 instead uses more forward-looking information to recognize expected credit losses. The second issue in the series of publications has been written to assist companies in understanding the impairment requirements under IFRS 9 and to provide practical insights related to these requirements. This edition includes the following sections:

  • Scope of the new impairment requirements;

  • The general (or three-stage) impairment approach;

  • Simplified model for trade receivables, contract assets and lease receivables;

  • Purchased or originated credit-impaired financial assets;

  • Presenting credit losses;

  • Disclosures; and

  • Practical insight – next steps.