IFRS 9 (International Financial Reporting Standard 9) is an accounting standard issued by the International Accounting Standards Board that governs how companies classify, measure, and account for financial instruments such as loans, investments and derivative products.
It replaced the older standard IAS 39 and is used by companies that follow IFRS worldwide.
Key Areas
Classification & measurement
Financial assets are classified based on:
- Business model (how the asset is managed)
- Cash flow characteristics
Impairment (expected credit loss model)
This is the biggest change from IAS 39. Instead of waiting for losses to occur, IFRS 9 requires companies to estimate future losses in advance using the Expected Credit Loss (ECL) mode
- Recognize losses earlier
- Applies to loans, receivables and some investments
- Uses a 3-stage approach: - Stage 1: Performing assets (12-month ECL)- Stage 2: Increased credit risk (lifetime ECL)- Stage 3: Credit-impaired assets
Hedge Accounting
Aligns accounting more closely with risk management:
- More flexible than IAS 39
- Allows companies to better reflect hedging strategies in financial statements
While many organisations have been “compliant” with IFRS 9 for years, the landscape in 2026 has introduced new complexities. It is no longer just about having a model; it is about the accuracy, integration and agility of that model in a volatile economy.
Factsheet
Designed to cover financial instrument handling, IFRS 9 came into force in 2018. However, many firms still do not have the tools to streamline their processes and simplify compliance. We have the knowledge to identify and implement solutions that reduce the operational cost of meeting requirements.
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