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Highlight IFRS

IFRS 9 establishes principles for reporting financial assets and liabilities that reflect an entity's financial performance in a timely manner. It requires financial assets to be classified into three categories: amortized cost, fair value through other comprehensive income, or fair value through profit or loss. IFRS 9 also introduces an expected credit loss model for impairment of financial assets and replaces the incurred loss model in IAS 39. Under the expected credit loss model, companies must estimate expected losses over the life of a financial asset based on historical data, current conditions, and forecasts.

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31 views16 pages

Highlight IFRS

IFRS 9 establishes principles for reporting financial assets and liabilities that reflect an entity's financial performance in a timely manner. It requires financial assets to be classified into three categories: amortized cost, fair value through other comprehensive income, or fair value through profit or loss. IFRS 9 also introduces an expected credit loss model for impairment of financial assets and replaces the incurred loss model in IAS 39. Under the expected credit loss model, companies must estimate expected losses over the life of a financial asset based on historical data, current conditions, and forecasts.

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IFRS 9

HIGHLIGHTS FOR

FINANCIAL INSTRUMENTS

Mohamed Samir Rashed


CMA , IFRS
LINKEDIN FINANCIAL CONTENT CREATOR
Mohamed Samir
MARCH 2023
THE CONTENT

1- OVERVIEW

2- THE MAIN OBJECTIVE

3- CLASSIFICATION AND
MEASUREMENT

4- ECL MODEL

5- IMPAIRMENT

Mohamed Samir Rashed CMA , IFRS


Mohamed Samir
1
OVERVIEW

Mohamed Samir Rashed CMA , IFRS


Mohamed Samir
IFRS 9 is a set of international
financial reporting standards
that govern the classification
and measurement of financial
assets and liabilities, the
impairment of financial
assets, and hedge accounting.

It was issued by the


International Accounting
Standards Board (IASB) in
July 2014 and became
effective on January 1, 2018.

2
THE MAIN
OBJECTIVE OF IFRS 9

Mohamed Samir Rashed CMA , IFRS


Mohamed Samir
The main objective of IFRS 9

The main objective of IFRS 9 is to


establish principles for the financial
reporting of financial assets and
liabilities that reflect the financial
performance of an entity in a more
timely and accurate manner than
previous standards.
IFRS 9 replaces the earlier
IAS 39 standard and
introduces several significant
changes in the classification
and measurement of financial
assets and liabilities, the
recognition and
derecognition of financial
instruments, and the
impairment of financial
assets.
3
CLASSIFICATION
AND
MEASUREMENT

Mohamed Samir Rashed CMA , IFRS


Mohamed Samir
Classification and Measurement of
Financial Assets and Liabilities:

Under IFRS 9, financial


assets are classified into
three categories:
1. Amortized cost
2. Fair value through other
comprehensive income
(FVOCI)
3. Fair value through profit
or loss (FVTPL)
4
ECL MODEL

Mohamed Samir Rashed CMA , IFRS


Mohamed Samir
ECL MODEL
The ECL model requires companies to
estimate the expected credit losses
over the life of the financial asset.
This estimation should take into
account historical data, current
market conditions, and reasonable
and supportable forecasts. The
standard also requires companies to
disclose the methodology and
assumptions used in estimating the
ECL.
5
IMPAIRMENT

Mohamed Samir Rashed CMA , IFRS


Mohamed Samir
The impairment losses

The impairment losses are


recognized in the profit and
loss account or in other
comprehensive income for
FVOCI assets. The loss
recognized is the difference
between the asset's
carrying amount and its
estimated recoverable
amount.
THANK YOU FOR READING

Mohamed Samir Rashed


CMA , IFRS

Mohamed Samir
LINKEDIN FINANCIAL CONTENT CREATOR

ABOUT THE AUTHOR

BECHALOR`S DEGREE IN ENGLISH


COMMERCE.
IS A CHIEF ACCOUNTANT
CMA HOLDER
IFRS DIPLOMA HOLDER
HAS MORE THAN 20 PUBLISHED
BOOKS AND ARTICLES ABOUT THE
FINANCIAL CAREER
Mohamed Samir Rashed
CMA , IFRS

Mohamed Samir

For contact
[email protected]
follow me for more financial information

Mohamed Samir CMA , DIPIFR

@MohamedSamirRa
Mohamed Samir Rashed

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