HKFRS 9 Financial Instruments

 

  


Technical Resources

 

This webpage contains pronouncements, guides and articles that are relevant to
HKFRS 9 Financial Instruments.

 

Effective Date

Financial periods beginning on or after 1 January 2018.

 

Affected standards

Supersedes HKAS 39 Financial Instruments: Recognition and Measurement.

 

Why do we need a new standard

HKFRS/IFRS 9 was developed to make financial reporting for financial instruments more relevant and understandable. The reforms introduced by HKFRS 9 are consistent with requests from the G20, the Financial Stability Board and Others.

 

HKFRS 9 brings together the classification and measurement,impairment and hedge accounting phases of the IASB’s project to replace HKAS 39 Financial Instruments: Recognition and Measurement.

 

HKFRS 9 is built on a logical, single classification and measurement approach for financial assets that reflects the business model in which they are managed and their cash flow characteristics.

 

Built upon this is a forward-looking expected credit loss model that will result in more timely recognition of loan losses and is a single model that is applicable to all financial instruments subject to impairment accounting.

 

In addition, HKFRS 9 addresses the so-called ‘own credit’ issue, whereby banks and others book gains through profit or loss as a result of the value of their own debt falling
due to a decrease in credit worthiness when they have elected to measure that debt at fair value.

 

HKFRS 9 also includes an improved hedge accounting model to better link the economics of risk management with its accounting treatment.

 

 

 

Click below for more information


file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif
Additional references issued by Standard Setters and Regulators 
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gifUseful references issued by other organisations
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif
 

 
 

Focus:



Additional references issued by Standard Setters and Regulators
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gifHKICPA Standard Setting Department
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gifIASB
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif

IAASB

 

Useful references issued by other organisations
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gifDeloitte
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gifEY
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gifKPMG
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gifPwC

 

  

Aplus articles
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gifFeb 2014: Major Overhaul of hedge accounting included in HKFRS 9 Financial Instruments amendments
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gifNov 2014: HKFRS 9 (2014) Financial Instruments completes comprehensive IASB response to financial crisis
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gifMay 2015: HKFRS 9 Financial Instruments
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif

May 2016: Implementing HKFRS 9's new impairment model 

file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gifJuly 2016: Why the new requirements for classifying financial instruments, do, matter

 
 
 

 

Frequently used resources




Technical enquiries

 Click here to submit questions on standards issued by HKICPA.
  
 

 

 

 

 

 

Last updated: October 2017