IFRS 9 - The blurring lines between accounting, risk management and the business
3 November 2015
IFRS 9 replaces IAS 39 with a unified standard and will materially influence banks' financial statements with impairment calculations the area most affected. The regulation is the International Accounting Standards Board's (IASB) response to the financial crisis to improve the accounting and reporting of financial assets and liabilities.
The impact is substantial across the global financial industry
The new reporting standard will need to be implemented by all financial institutions listed on eligible regulated exchanges in Europe, the Middle East and in Asia Pacific.
But IFRS 9 is not a simple upgrade from IAS 39. Banks need to consider the the wider infrastructure it will be sitting on, and review the data flow from source to accounting, including balance sheet and risk management activities. The deepening integration of the key finance-related functiosn, from source, e.g. leanding, through to risk, finance nad treasury means that IFRS0 will have a widespread impact across the business.