Companies reporting under international accounting standards (IFRS), or their Hong Kong equivalents (HKFRS), need to be ready to transition to the new financial instruments standard by 1 January 2018. IFRS 9, “Financial Instruments”, replaces IAS 39, “Financial Instruments: Recognition and Measurement” and addresses the classification and measurement of financial assets and liabilities. It also includes a new expected credit loss model, which replaces the incurred loss impairment model used for financial assets today.
However, one often overlooked aspect of IFRS 9 is the substantially-reformed approach to hedge accounting.
China and Hong Kong Corporate Treasury Leader
Tel: + 2289 2313