I will do international financial reporting standards

Introduction:

IFRS 9 Financial Instruments1 (IFRS 9) was developed by the International Accounting Standards Board (IASB) to replace IAS 39 Financial Instruments: Recognition and Measurement (IAS 39). which incorporates the requirements of all three phases of the financial instruments projects, being:

Classification and Measurement;

Impairment; and Hedge Accounting.

Classification and measurement of Financial Instruments:

IFRS 9 requires an entity to classify financial assets on the basis of the entitys business model for managing the financial assets.

Impairments:

The introduction of new requirements for the accounting for ECL in IFRS 9 Financial Instruments is a significant change to the financial reporting of the entity. It will impact many stakeholders, including investors, regulators, analysts and auditors.

Under ECL approach and as per IFRS 9: It is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, an entity always accounts for ECL, and changes in those ECL..