Normative Requirements implied by IFRS9
The new normative requirement IFRS 9 « Financial instruments » will apply as of 1st January 2018, in replacement of the norm IAS39 "Financial instruments : Accounting and Evaluation”.
The norm implies a full review of accounting process and evaluation of assets and liabilities, calcul of impairment and the general model of hedge accounting.
IFRS9 covers 3 phases: Classification & Measurement of Financial Assets, Impairment and Hedge accounting.
To begin with, a full review of Financial Instruments concepts and regulatory reporting needs to be implemented. Afterwards you need to go through three phases.
- Phase 1 : Classification & Measurement of Financial Assets
- Phase 2 : Impairment
- Hedge accounting is the third phase of the IFRS 9 project.
Implementation of the norm into the information system has to be started as soon as possible.