Accounting for Financial Assets and Financial Liabilities According to IFRS 9

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Abstract

The most controversial accounting standards during the last decade, IAS 39 “Financial instruments: recognition and measurement” and its American equivalents FAS 133 “Accounting for derivative instruments and hedging activities” and FAS 157 “Fair value measurements” have regained their place as the global focus of the public debate since the beginning of the current crisis. Following the strong criticism received lately, the standard-setters have started several projects aimed at reviewing the accounting issues that have emerged from the crisis. So far, the result consists of the publication of IFRS 9 “Financial Instruments” issued by IASB and an exposure draft on financial instruments issued by FASB. This paper aims at analyzing the new rules, concepts and principles introduced by IFRS 9. In addition, it attempts to identify some possible consequences of its application.

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