Don`t Get Caught on the Hop. Be Prepared for the New IFRS 9 Standard

 

The new principle IFRS 9 Accounting for financial instruments was published by IASB in order to replace IAS 39 Financial Instruments: Recognition and Measurement. The new standard focuses on classification/ measurement and impairment of financial instruments.

 

Have you already thought about the features requested by a system to cover the IFRS 9 requirements?

 

Tagetik software for IFRS9

 

The ideal solution is requested to include all the calculations necessary to determine the impairment of financial instruments. It is important to cover the overall process, including the disclosure requirements stated from both IFRS 9 and IFRS 7 (Financial Instruments: Disclosures).
Furthermore, reporting should provide comparisons among old and new approaches to better understand the impacts of the IFRS 9 adoption.

 

Besides the financial reporting for disclosure purposes, the solution should provide:

  • detailed financial information, needed to analyze the effect of the impairment at a granularity level that may vary depending on the analysis perspective
  • the possibility to dialogue with the accounting information such as the general ledger or the different subledger systems.

 

Tagetik is tackling the topic by working on a starter kit that follows a modular approach that can retrieve input data, calculate the needed information for both the phase of classification and measurement, and the phase of stage allocation. Calculations of impairment of financial instruments are embedded into the solution, together with the disclosure layer.

 

Solutions for IFRS 9 standards are in a development phase, and it is important to share ideas and interpret the possible evolution of the application of IFRS 9. A lot of topics are still open (for example in the product roadmap), Tagetik plans to include other interesting optional features, as SPPI test, EIR and CAEIR calculation.

 

Learn more about how Tagetik can help you to tackle the new standard


Tagetik software for IFRS9

Share this post!