International Financial Reporting Standard
IFRS 9 is an International Financial Reporting Standard (IFRS) issued by the International Accounting Standards Board (IASB). This new standard is endorsed by the European Union in November 2016 and has a mandatory effective date for annual periods beginning on or after 1 January 2018, with earlier adoption permitted. IFRS 9 will replace the accounting for financial instrument under IAS 39, as this was very complicated and difficult for companies to apply correctly. The new requirements include a new approach to hedge accounting and aligns more closely with risk management, and so should help users of financial statement in their decision-making. Although the general accounting mechanisms will largely remain unchanged, the reforms of IFRS 9 encompass an array of changes that will influence your hedge accounting process in different ways.