The Grant Thornton International Ltd IFRS team has published Get ready for IFRS—Classifying and measuring financial instruments, the first issue in a series of publications intended to help you prepare for IFRS 9.

IFRS 9 (2014) fundamentally rewrites the accounting rules for financial instruments. While IFRS 9 was mandatory effective date of January 1, 2018 may seem a long way off, companies really need to start evaluating the impact of the new Standard now. As well as the impact on reported results, many businesses will need to collect and analyze additional data and implement changes to systems.

The first issue in the series of publications has been written to assist companies in understanding the requirements for classifying and measuring financial instruments under IFRS 9 and to provide practical insights related to these requirements. This edition includes the following sections:

  • overview of classification and measurement requirements;
  • the business model test;
  • contractual cash flows characteristics test;
  • classification and measurement;
  • classification of financial liabilities; and
  • practical insight –next steps.