Two-year delay for IFRS 9
The effective date of IFRS 9 Financial Instruments has been pushed back two years to allow the standard to be completed and endorsed
GLOBAL STANDARD SETTERS have delayed the effective date of the unfinished IFRS 9 by two years to 1 January 2015.
Last week’s board meeting decided that the delay will make transition to the Financial Instruments standard simpler, allowing for one swift change rather than the planned multi-stage process.
Two key components – hedge accounting and the expected loss model – remain unfinished, and the effective date for IFRS 9 implementation, initially set in 2009, was deemed no longer realistic.
A number of jurisdictions have yet to endorse the standard and companies typically demand several years to make the transfer. However, early adoption will remain an option, and countries like Australia may choose this route.