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There are a number of IFRS standards that are relevant to financial instruments. This e-learning module will introduce the participants to the similarities and differences in hedge accounting under IAS 39 and IFRS 9.
- IFRS 9: what you need to know in two pages - PwC
IFRS 9 has three classification categories for debt...
- IFRS 9: what you need to know in two pages - PwC
IAS 39 and IFRS 9 are both accounting standards issued by the International Accounting Standards Board (IASB) that govern the recognition and measurement of financial instruments. However, there are key differences between the two standards.
IFRS 9 has three classification categories for debt instruments: amortised cost, fair value through other comprehensive income (‘FVOCI’) and fair value through profit or loss (‘FVPL’).
IFRS 9 replaces the rules based model in IAS 39 with an approach which bases classification and measurement on the business model of an entity, and on the cash flows associated with each financial asset.
What are the differences between IAS 39 and IFRS 9? Learn about IAS 39 IFRS 9 here and understand why there are 2 standards dealing with the same issue.
Under IFRS 9, the hedge ratio can be adjusted to reflect the new economic relationship, with only the ineffective part rebalanced through P&L. Flexibility will be much improved under IFRS 9 thanks to the ability to hedge aggregated exposures.
4 lis 2020 · Findings provide evidence that both IAS 39 and IFRS 9 are value relevant and that the second one adds more infromation than that previously supplied by the first one. The paper contributes to the literature by providing the first evidence of the usefulness of the new accounting standard on financial instruments.
