Effective for accounting periods beginning on or after 1 January 2018
The IASB introduced a new standard for financial instruments: IFRS 9, in response to the widespread criticism of IAS 39 and its alleged role in contributing to the financial crisis of 2007/2008. Especially classification and measurement of financial assets under IAS 39 received the most criticism during the financial crisis. Therefor the IASB decided to introduce a whole new standard: IFRS 9 Financial Instruments.
IFRS 9 Financial Instruments includes:
- Classification and measurement
- Hedge Accounting
Hedge Accounting will not be discussed in this memo.
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