How is IFRS 9 different from IAS 39?

The main difference between the two accounting standards is that the new standard (IFRS 9) requires a recognition of credit loss allowances on initial recognition of financial assets, whereas previously under IAS 39, impairment is recognized at a later stage, when a credit loss event has occurred.

Does IFRS 9 replace IAS 32?

IAS 32 is a companion to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 9 Financial Instruments. IAS 39 was progressively replaced by IFRS 9 as the IASB completed the various phases of its financial instruments project.

What does Efrag stand for?

European Financial Reporting Advisory Group
European Commission. European Financial Reporting Advisory Group (EFRAG)

Does IFRS 9 replace IAS 36?

As a result of the issue of IFRS 9, IAS 36 is amended to: Exclude financial instruments accounted for in accordance with IFRS 9, rather than IAS 39. Refer to IFRS 9 for the impairment of financial assets not within the scope of IAS 36.

What does FASB stand for in accounting?

Financial Accounting Standards Board
Established in 1973, the Financial Accounting Standards Board (FASB) is the independent, private- sector, not-for-profit organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally …

How does IFRS 9 work?

IFRS 9 is effective for annual periods beginning on or after 1 January 2018 with early application permitted. IFRS 9 specifies how an entity should classify and measure financial assets, financial liabilities, and some contracts to buy or sell non-financial items.

What IFRS 9 covers?

IFRS 9 is an International Financial Reporting Standard (IFRS) published by the International Accounting Standards Board (IASB). It contains three main topics: classification and measurement of financial instruments, impairment of financial assets and hedge accounting.

Is IAS 36 impairment of assets?

The core principle in IAS 36 is that an asset must not be carried in the financial statements at more than the highest amount to be recovered through its use or sale. If the carrying amount exceeds the recoverable amount, the asset is described as impaired.

Is IAS 39 still in effect?

IAS 39 requirements for classification and measurement, impairment, hedge accounting and derecognition are withdrawn for periods starting on or after 1 January 2018 when IAS 39 is largely superseded by IFRS 9 Financial Instruments.