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IFRS 9, Financial Instruments (2014) [Completed]

Effective date: Annual periods beginning on or after January 1, 2018. Earlier adoption permitted.

Transitional provisions:

Annual periods beginning on or after January 1, 2018. Earlier adoption is permitted.

Last updated:

November 2018

Reach out to our IFRS 9 Specialist

Kerry Danyluk


IFRS 9, as amended, introduces a logical approach for the classification of financial assets, which is driven by cash flow characteristics and the business model in which an asset is held.  This single, principle-based approach replaces existing rule-based requirements that are generally considered to be overly complex and difficult to apply.  The new model also results in a single impairment model being applied to all financial instruments, thereby removing a source of complexity associated with previous accounting requirements.

IFRS 9, as amended, introduces a new, expected-loss impairment model that will require more timely recognition of expected credit losses. Specifically, the new Standard requires entities to account for expected credit losses from when financial instruments are first recognized and to recognize full lifetime expected losses on a more timely basis.


Other developments

March 2016

On March 10, 2016, the OSFI released its draft guideline IFRS 9 Financial Instruments and Disclosures, which provides guidance to federally regulated entities on the application of IFRS 9, Financial Instruments, and in particular, the implementation of the expected loss framework under IFRS 9. The draft guideline also incorporates a number of OSFI's existing accounting and disclosure guidelines related to financial instruments. OSFI is inviting comments on the draft guideline until May 6, 2016.

January 2015

On January 30, 2015, Highlight Summary I.29 dated February 2015, was issued adding IFRS 9 to the “IFRSs Issued but Not Yet Effective” section of the CPA Canada Handbook, Part 1. Of note, new IFRSs only become part of Canadian GAAP once they have been issued in the CPA Canada Handbook. 

July 2014

On July 25, 2014, the IASB completed the final elements of its comprehensive response to the financial crisis by issuing a new version of IFRS 9, Financial Instruments, which includes (i) revisions to its classification and measurement model and (ii) a single, forward-looking ‘expected loss’ impairment model. The version of IFRS 9 issued in 2014 supersedes all previous versions and is mandatorily effective for periods beginning on or after January 1, 2018 with early adoption permitted. For a limited period, previous versions of IFRS 9 may be adopted early if not already done so, provided the relevant date of initial application is before February 1, 2015.

November 2013

On November 19, 2013, the IASB announced the completion of a package of three further amendments to the accounting requirements for financial instruments set out in IFRS 9 (2009). The amendments: (i) bring into effect a substantial overhaul of hedge accounting that will allow entities to better reflect their risk management activities in the financial statements; (ii) allow the changes to address the so-called ‘own credit’ issue that were already included in IFRS 9 to be applied in isolation without the need to change any other accounting for financial instruments; and (iii) remove the January 1, 2015 mandatory effective date of IFRS 9, to provide sufficient time for preparers of financial statements to make the transition to the new requirements. Following these amendments, IFRS 9 continues to be available if entities choose to apply it and entities currently have a choice about which parts of IFRS 9 they apply. Entities can choose to apply: only the own credit requirements; only the classification and measurement requirements for financial assets; the classification and measurement requirements for financial assets and financial liabilities; or the classification and measurement requirements for financial assets and financial liabilities and the hedge accounting requirements.

December 2011

In December 2011, the IASB approved the deferral by two years of the effective date of IFRS 9 (2009), being from January 1, 2013 to January 1, 2015. The amendments approved by the IASB in December 2011 also provide relief from the requirement to restate comparative financial statements for the effect of applying IFRS 9. This relief was originally only available to companies that chose to apply IFRS 9 prior to 2012. Instead, additional transition disclosures will be required to help investors understand the effect that the initial application of IFRS 9 has on the classification and measurement of financial instruments.

November 2009

On November 12, 2009, the IASB issued IFRS 9 (2009).


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