Introduction

Information:

On 22 November 2016, the EU approved the content of International Financial Reporting Standard 9 — Financial Instruments. The standard applies to reporting periods for the period beginning on or after 1 January 2018.

The package of amendments under IFRS 9 contains, inter alia, new principles for the classification and measurement of financial instruments depending on the so-called ‘business model’. In addition, IFRS 9 introduces a new model of accounting for impairment, i.e. the expected credit losses (ECL) model. This model is an amendment to the guidelines of IAS 39 and the response to the criticism concerning the historical losses model.  The new principles mean that upon the initial recognition of financial assets without impairment, entities will have to recognise the loss as at day 1 in the amount of the 12-month expected credit loss (or expected credit losses over the life of a financial asset in the case of trade receivables). The standard also introduces amendments related to hedge accounting.

We provide IFRS 9 and other services throughout Poland in regional offices in Warsaw, Łódź and Poznań, Opole, Wrocław, Katowice, Lublin, Gdańsk and Zielona Góra.