IFRS 9 resources

Financial instruments continue to form part of the Financial Reporting Council's (FRC's) top-ten areas of challenge as evidenced in its Annual Review of Corporate Reporting 2022/23.  

Similar to the prior year, the FRC raised questions about expected credit loss (ECL) provisions, with most queries relating to smaller financial institutions. Other challenges related to unclear accounting treatment and policies and the basis on which cash and overdraft balances were offset.

For their forthcoming reporting the FRC expects companies to ensure that:

  • the nature and extent of material risks arising from financial instruments (including inflation and rising interest rates) and related risk management are adequately disclosed, including:
    • the methods used to measure exposure to risks and any changes from the previous period.
    • any hedging arrangements put in place to fix interest rates or hedge against the effects of inflation.
  • the approach and significant assumptions applied in the measurement of ECL, and concentrations of risks, where material, are disclosed.
  • in making ECL assessments, historical default rates are reviewed and adjusted for forecast future economic conditions.
  • accounting policies are provided for all material financing (including factoring and reverse factoring) and hedging arrangements, and any changes in the arrangements.
  • the effect of refinancing and changes to covenant arrangements is explained.
  • cash and overdraft balances have been offset only when the qualifying criteria have been met. 
  • information about banking covenants is provided unless the likelihood of any breach is considered remote.

This page includes a comprehensive collection of all of our resources on IFRS 9.  It includes links to:

IFRS 9 resources

Deloitte comment letter on amendments to the classification and measurement of financial instruments Image

Deloitte comment letter on amendments to the classification and measurement of financial instruments

19 Jul, 2023

We have commented on the IASB’s Exposure Draft ‘Amendments to the Classification and Measurement of Financial Instruments – Proposed amendments to IFRS 9 and IFRS 7’.

EFRAG (European Financial Reporting Advisory Group) (dk green) Image

EFRAG draft comment letter on the request for information on the post-implementation review of IFRS 9 (impairment)

19 Jul, 2023

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's request for information (RFI) seeking comments from stakeholders to identify whether the impairment requirements in IFRS 9 'Financial Instruments' provide information that is useful to users of financial statements; whether there are requirements that are difficult to implement and may prevent the consistent implementation of the standard; and whether unexpected costs have arisen in connection with applying or enforcing the standard.

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Educational material on applying IFRSs to climate-related matters updated

04 Jul, 2023

The IFRS Foundation has released an updated version of its publication that shows how existing IFRS requirements require companies to consider climate-related matters when their effect is material to the financial statements.

Need to know — IASB seeks views on the post-implementation review of the IFRS 9 impairment requirements Image

Need to know — IASB seeks views on the post-implementation review of the IFRS 9 impairment requirements

27 Jun, 2023

This Need to know outlines the Request for Information (RFI) Post-implementation Review of IFRS 9 — Impairment, published by the International Accounting Standards Board (IASB) in May 2023.

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UKEB publishes its draft comment letter on the IASB’s proposed amendments to the classification and measurement of financial instruments

05 Jun, 2023

The UK Endorsement Board (UKEB) has published its draft comment letter relating to the International Accounting Standards Board (IASB) Exposure Draft (ED) 2023/2 'Amendments to Classification & Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7)'.

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IASB publishes second request for information on the post-implementation review of IFRS 9

30 May, 2023

The International Accounting Standards Board (IASB) has issued a request for information (RFI) seeking comments from stakeholders to identify whether the impairment requirements in IFRS 9 'Financial Instruments' provide information that is useful to users of financial statements; whether there are requirements that are difficult to implement and may prevent the consistent implementation of the standard; and whether unexpected costs have arisen in connection with applying or enforcing the standard.

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We comment on three IFRS Interpretations Committee tentative agenda decisions

18 May, 2023

We have published our comment letters on IFRS Interpretations Committee tentative agenda decisions related to IFRS 9, IFRS 17, and home and home loans to employees, as published in the March 2023 'IFRIC Update'.

Deloitte comment letter on tentative agenda decision on guarantee over a derivative contract Image

Deloitte comment letter on tentative agenda decision on guarantee over a derivative contract

18 May, 2023

We have commented on the IFRS Interpretations Committee's publication in the March 2023 IFRIC Update of the tentative agenda decision not to take onto the Committee’s agenda the request about whether, in applying IFRS 9, an entity accounts for a guarantee written over a derivative contract as a financial guarantee contract or a derivative.

Deloitte comment letter on tentative agenda decision on premiums receivable from an intermediary Image

Deloitte comment letter on tentative agenda decision on premiums receivable from an intermediary

18 May, 2023

We have commented on the IFRS Interpretations Committee's publication in the March 2023 IFRIC Update of the tentative agenda decision (TAD) not to take onto the Committee’s agenda the request about how an entity that issues insurance contracts (insurer) applies the requirements in IFRS 17 and IFRS 9 to premiums receivable from an intermediary.

Need to know — Reporting in uncertain times: Impact of recent events in the banking sector Image

Need to know — Reporting in uncertain times: Impact of recent events in the banking sector

11 May, 2023

This Need to know addresses key financial reporting matters associated with the recent events in the banking sector for entities that apply IFRS Accounting Standards.

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Online workshop on the post-implementation review of IFRS 9

11 May, 2023

On 30 June 2023, the International Accounting Standards Board (IASB), the European Acounting Association (EAA), and the European Financial Reporting Advisory Group (EFRAG) will offer a joint virtual research workshop.

EFRAG (European Financial Reporting Advisory Group) (dk green) Image

EFRAG draft comment letter on the IASB’s proposed amendments to classification and measurement of financial instruments

05 May, 2023

The EFRAG has issued a draft comment letter on the IASB’s proposed amendments to the classification and measurement of financial instruments. Overall, the EFRAG welcomes the IASB’s proposed amendments, particularly the clarifications to the general solely payments of principal and interest (SPPI) requirements, which the EFRAG says would provide a good basis for evaluating whether contractual cash flows of financial assets with ESG-linked or similar features meet SPPI requirements.

Need to know — IASB proposes amendments to the classification and measurement requirements of financial instruments Image

Need to know — IASB proposes amendments to the classification and measurement requirements of financial instruments

05 Apr, 2023

This Need to know discusses IASB/ED/2023/2 Amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7) that was published to address matters identified during the post-implementation review of the classification and measurement requirements of IFRS 9 Financial Instruments.

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ESMA publishes 27th enforcement decisions report

29 Mar, 2023

The European Securities and Markets Authority (ESMA) has published further extracts from its confidential database of enforcement decisions taken by European national enforcers. This batch deals with decisions in relation to IFRS 10/IFRS 16/IAS 1, IFRS 8, IAS 38 (two decisions), IFRS 16, IFRS 15, IAS 36/IAS 1, IAS 1, IFRS 7, IFRS 9 (two decisions), and IAS 32/IFRS 9.

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IASB proposes amendments regarding the classification and measurement of financial instruments

21 Mar, 2023

The International Accounting Standards Board (IASB) has published an exposure draft 'Amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7)' to address matters identified during the post-implementation review of the classification and measurement requirements of IFRS 9 'Financial Instruments'. Comments are requested by 19 July 2023.

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FRC publishes IFRS 9 banking audit methodology thematic

28 Feb, 2023

The Financial Reporting Council (FRC) has published the results of its thematic review of the Big 4 audit firms' methodology and guidance around IFRS 9 'Financial Instruments'.

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Webinar on call for papers on IFRS 9 hedge accounting requirements

31 Jan, 2023

On 8 February 2023, the IASB is offering a live webinar for academics to explain what academic research it is interested in receiving to inform its forthcoming post-implementation review of the hedge accounting requirements in IFRS 9 (and related new disclosure requirements in IFRS 7).

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Call for papers on IFRS 9 hedge accounting requirements

14 Dec, 2022

The IASB and 'Accounting & Finance' are calling for papers for a special issue of the journal on the topic of the application and impact of the hedge accounting requirements in IFRS 9 (and related new disclosure requirements in IFRS 7). Authors of selected papers will be invited to present their work at an on-line research workshop with the special issue editors and IASB staff/board members in October 2023.

Governance in brief — FRC sets out key matters for 2022/23 reporting season Image

Governance in brief — FRC sets out key matters for 2022/23 reporting season

07 Dec, 2022

The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting setting out key matters for 2022/23 reporting season.

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FRC publishes findings on the quality of corporate reporting in 2021/2022

28 Oct, 2022

The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting 2021/2022. The report sets out the FRC’s expectations of areas of corporate reporting that require improvement and highlights the ten most frequently raised topics where improvements to reporting quality are needed.

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