Wiley International Trends in Financial Reporting under IFRS: Including Comparisons with US GAAP, Chinese GAAP, and Indian GAAP

APPENDIX A

FINANCIAL INSTRUMENTS (IFRS 9)

1. OBJECTIVE

1.1 This Standard replaces International Accounting Standard (IAS) 39, Financial Instruments: Recognition and Measurement, and is being introduced in a phased manner. In November 2009, the International Accounting Standards Board (IASB) issued International Financial Reporting Standard (IFRS) 9, Financial Instruments, and introduced new classification and measurement requirements for financial assets to replace the classification and measurement requirements previously included in IAS 39. The first phase deals with the classification and measurement of financial assets effective from January 1, 2013, with an option for early adoption.

1.2 In October 2010, the IASB issued a revised version of IFRS 9 in which it added requirements for classification and measurement of financial liabilities. The requirements for impairment of financial assets measured at amortized cost and hedge accounting would be introduced in the next two phases.

1.3 IFRS 9 is effective for annual periods beginning on or after January 1, 2013, with early application permitted. IFRS 9 requires retrospective application (subject to some transitional provisions). However, entities that apply IFRS 9 in advance of its effective date for reporting periods beginning before January 1, 2012, can choose not to restate the comparative periods.

1.4 An entity opting for early adoption may choose to enjoy the exemption given in the transitional provision and not to restate ...