Q: What is IFRS 9?
A: IFRS 9 is the International Financial Reporting Standard that replaces the IAS 39.
Q: When does it take effect?
A: It already has. It went into effect January 1, 2018.
Q: Why are they doing this?
A: IFRS 9 was created to simplify and tighten up some of the reporting aspects of IAS 39, particularly with concern to deferment of credit losses on loans and receivables until too late in the credit cycle.
Q: Who all is affected by this change?
A: Banks, credit unions and other financial institutions that issue loans or manage instruments of debt. Many major world markets require IFRS 9, the exceptions being: U.S. (no current plans to adopt), Japan (adoption voluntary, not required) and China (converge at an undetermined future date).
Q: How does this affect us on a daily, operational level?
A: Moving forward, everything will need to be reported according to IFRS 9 standards. This includes classifying both clients by risk level, re-classification of assets according to IFRS 9 categories and more. HERE is a detailed list.
Q: Is my software able to handle these changes?
A: MIMICS has developed the IFRS 9 Option to accommodate these requirements. Contact Us for a free assessment of your specific needs or to see a demonstration.