IFRS 9

CFA Level II
#1

In the curriculum there are a bunch of rules that diffentiate this from the old… In my opinion, the curriculum doesn’t do a very good job at segregating all these specific rules.

So… with that said, what are the main points that we should know about IFRS 9? Besides the following:

The major changes made by phase one of IFRS 9 are:

  • A business model approach to classification of debt instruments

  • Three classifications for financial assets: Fair value through profit or loss (FVPL), Fair value through other comprehensive income (FVOCI), and amortize cost.

  • Reclassifications of debt instruments are permitted only when the business model changes. The choice to measure equity investments at FVOCI or FVPL is irrevocable.

Thanks!

#2

You’ve neatly summarized the changes. I guess that’s about all there is that has changed from '13 to 14. Financial Assets Classification diagram on pg 125 is also helpful in understanding the new concepts.