In 2014, the IASB issued IFRS 9: Financial Instruments, which replaced IAS 39 Financial Instruments: Recognition and Measurement. IFRS 9 supersedes all previous standards and is mandatory for periods beginning on or after 1 January 2018. Early adoption permitted.
The forward-looking expected credit loss (ECL) model which result in more timely recognition of loan losses, is a single model that is applicable to all financial instruments subject to impairment accounting.
The standard also includes an improved hedge accounting model to better link the economics of risk management with its accounting treatment.
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