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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.


Recent development 

The International Accounting Standards Board (IASB) issued the completed version of IFRS 9 in 2014 and the standard has been effective since 2018. To help the IASB assess the effects of a new Standard after it has been effective for some time, the IASB started carrying out the Post-implementation Review (PIR) of IFRS 9 in 2021 and issued the Request for Information (RFI) on the classification and measurement requirements on 30 September 2021. The RFI seeks feedback on applying the classification and measurement requirements of IFRS 9 and related disclosures. The IASB will use the feedback on the RFI to determine whether any further action is required. 


The Hong Kong Institute of Certified Public Accountants (Institute) has conducted various forms of outreach activities to solicit feedback from local stakeholders and submitted its comment letter to the IASB on this RFI on 13 January 2022. The submission and the comment letters received are available at the Institute’s website. 


Upcoming activities


The IASB has completed its PIR of the classification and measurement requirements in IFRS 9 and published the project report and feedback statement in December 2022. Feedback from stakeholders and research undertaken as part of the PIR show that the requirements set out in IFRS 9 are working as intended and provide useful information to the users of financial statements. In response to feedback on this PIR, the IASB has initiated a standard-setting project to make narrow-scope amendments to IFRS 9 and an Exposure Draft is expected to be published in Q1 of 2023. The IASB also decided to add a project on amortised cost measurement to its research pipeline. In addition, the IASB began the PIR on impairment in H1 of 2022 and aims to publish a RFI in H2 of 2023.



Click below for more information

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



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




Useful references issued by other organisations
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif Deloitte
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif EY
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif KPMG
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif PwC



Aplus articles

February 2022: A review of the classification and measurement of financial instruments

December 2019: HKFRS 9 – Key application challenges for corporates and practical tips
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif Feb 2014: Major Overhaul of hedge accounting included in HKFRS 9 Financial Instruments amendments
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif Nov 2014: HKFRS 9 (2014) Financial Instruments completes comprehensive IASB response to financial crisis
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif May 2015: HKFRS 9 Financial Instruments

May 2016: Implementing HKFRS 9's new impairment model 

file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif July 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 the Institute.

Last updated: January 2023