The New Impairment Model Under IFRS 9 and CECL

As part of the response to the last financial crisis, the International Accounting Standards Board finalised its new standard – IFRS 9 – in July 2014. The package of improvements introduced by IFRS 9 includes a logical model for classification and measurement, a single, forward-looking ‘expected loss’ impairment model and a substantially reformed approach to hedge accounting.

This title focuses specifically on the second part of the package of improvements. It discusses the new requirements for measuring the impairment of financial assets and highlights the challenges faced by institutions in implementing the new accounting requirements.