On January 1, 2018, the International Financial Reporting Standard 9 (IFRS 9) will go into effect, and will impact financial institutions around the globe. Portfolio and Loan clients, in particular, should be aware of how these changes will affect their operations.
What exactly is IFRS 9?
Essentially, IFRS 9 is new global legislation that attempts to mitigate some of the perceived deficiencies in accounting standards that contributed to the financial crisis of 2008.
How does this affect me?
There are several changes in the new standard, but the ones that apply most directly to your reporting include the following:
· Assets may need to be reclassified (Amortized Cost, FVPL, FVOIC)
· Accounting Rules for reclassification may need to be added
· The overall portfolio may need to be reclassified in some cases
· Accounting Rules for other transactions in Portfolio may need to be changed
· You may need to adjust your approach to tracking Impairment (and Expected Loss) for loans
So what should I do about it?
Be proactive. Start by reading THIS to help you fully understand the nuances of the changes. Contact MIMICS directly if you need assistance with IFRS 9.
How can MIMICS help with IFRS 9?
MIMICS would be happy to help you with adjusting to IFRS 9. Areas MIMICS may be able to assist with include:
· Updating your system to the latest version of the system, including updated IFRS 9 classifications
· Assisting with batch reclassification of assets
· Assisting with setting up new Accounting Rules or adjusting existing Rules
· Updating your system to help track Impairment
Please note that, depending on your exact needs, some charges may apply.
Let us know via a support request or email sales@mimics.com if you need IFRS 9 assistance. Thank you!