The adoption of AASB 9 should be viewed as three very distinct projects: impact of changes to classification and measurement; impact of moving to a predictive impairment model; and opportunities to apply the more relaxed hedging rules.
Entities need to be across the changes they need to make, in order to be able to prepare their financial statements using the new accounting standard. The changes required can be complex and have effects beyond just the accounting treatment.
Adoption of AASB 9 involves the preparer making a number of choices as to how to apply the standard, including making a decision as to which transition route to employ. As the choices made will affect the way the performance of a business is measured and reported, it is vital to consider not only the commercial and practical issues, but also the tax implications of these changes.
Below are just a few of the areas where complex issues typically arise on the adoption of AASB 9:
• Complexity of classification and measurement of financial assets
• Restrictions on types of financial assets that can be recorded at amortised cost
• Impacts of the new requirements to record more assets at fair value
• Impacts of a fundamental change in the impairment model for bad debts
• Opportunities to much more easily achieve hedge accounting.
Webinar Learning Outcomes:
At the end of this webinar, attendees will be able to:
• Explain how reported results will be impacted;
• Explain which financial assets need to be recorded at fair value;
• Explain which processes and systems will need changing;
• Explain whether the standard be adopted early;
• Explain which wider business planning activities will be affected.
Preparers and auditors of financial reports.
Kevin Frohbus is an Associate Director in IFRS Advisory for BDO Australia. Kevin is an IFRS advisory specialist with over 20 years’ experience in financial reporting and accounting. Kevin has served in all manner of roles and occupations that support the development of global accounting standards and improve the overall quality of financial reports, including Partner, Associate Director, Technical Director and Head of Risk Management at four separate international advisory firms. Kevin’s technical excellence in IFRS is complimented by a measured and practical approach to applying the standards. He is highly personable and pragmatic – a quality that is often commented on and sought after by clients.
You will be provided with:
• PowerPoint presentation slide deck
• Supporting documentation
• Webinar Recording to view multiple times for up to 6 months
• An opportunity to ask questions to the presenter
AASB 9 Financial Instruments significantly changes the financial reporting landscape for how entities account for financial instruments.