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Wiley IFRS: Practical Implementation Guide and Workbook, 3rd Edition by Liesel Knorr, Graham Holt, Abbas A. Mirza

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Chapter 40
FINANCIAL INSTRUMENTS (IFRS 9)

INTRODUCTION AND PURPOSE

The International Accounting Standards Board (IASB) issued IFRS 9 Financial Instruments in November 2009. This is the first installment of a phased replacement of the existing standard IAS 39, Financial Instruments: Recognition and Measurement. This Standard introduces new requirements for the classification and measurement of financial assets and is effective from January 1, 2013, with early adoption permitted.
New requirements for classification and measurement of financial liabilities, derecognition of financial instruments, impairment, and hedge accounting are to be added to IFRS 9 in 2011.
Early adoption of the standard is a major step for any entity as an early adopter of IFRS 9 continues to apply IAS 39 for other accounting requirements for financial instruments that are not covered by IFRS 9, that is, classification and measurement of financial liabilities, recognition and derecognition of financial assets and financial liabilities, impairment of financial assets, and hedge accounting.
In some jurisdictions, the new standards will have to be adopted before they can be applied and in others there will be some restrictions on early adoption. It would seem wise to wait until the whole of the new standard has been finalized.
The aim of the revision of IAS 39 is to remove inconsistencies between US GAAP and IFRS and to improve IFRS in accounting for financial instruments.
This will enable comparisons to be ...

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