IFRS 9
With the intention of convergence in accounting standards between the IASB and FASB, certain accounting standards are in the process of review and/or new issuance. In particular, a major overhaul of the accounting requirements relating to financial instruments is expected in the near future. The impact will be far-reaching, affecting financial institutions, corporates and the public sector.
In response to the expected changes, we have established a centralised IFRS implementation team, with a focus on the practical implementation of the amended accounting standards at our clients. The primary objective of the centralised IFRS implementation team is to win non-audit engagements to assist banks and corporates to implement the amended standards. We are able to assist clients through all phases of their IFRS implementation projects including:
- Structuring and managing their IFRS implementation projects
- Technical accounting elections and treatments
- Model design and build
- System configuration
- Process design and implementation
Although we have always housed specialist skills in the different areas of accounting within A&A, Capital Markets and the audit and consulting businesses, the centralised IFRS implementation team harnesses these skills to the best advantage of our clients and the firm.
We have built this capacity through pulling together these specialist functions under the single management team to ensure focused and consistent delivery to our clients.
The initiatives that the centralised IFRS implementation team is currently driving and the forthcoming communication to look out for:
The pending replacement of IAS 39 - Financial Instruments: Recognition and Measurement with IFRS 9 is of particular interest to us and our clients. We are currently positioning ourselves, as a firm, to respond to the requirements of our clients when the new standard is issued in the middle of this year.
The proposed replacement project has been introduced through a series of exposure drafts that cover the various aspects of the new standard in various phases. These being:
- Classification and Measurement
- Impairment Methodology
- Hedge Accounting
- Fair Value Measurement
Over the course of the coming weeks, we will be providing overviews of each of these, as well as other pertinent topics, highlighting the main principles and what the likely impact will be on our various clients.
In the meantime, should you or your client have any questions relating to the new accounting standards, please do not hesitate to contact the appropriate representative of the centralised IFRS implementation team.