Author : Muzammal Rahim

The global financial system thrives on stability, and accounting standards like International Financial Reporting Standard 9 (IFRS 9) are designed to bolster it. Introduced in the wake of the 2008 financial crisis, IFRS 9 mandates a forward-looking “Expected Credit Loss” (ECL) model, requiring banks to provision for potential loan losses much earlier than before. The […]

For many South African businesses and financial institutions, the adoption of IFRS 9 Financial Instruments in 2018 initially felt like a daunting compliance exercise. Replacing the ‘incurred loss’ model of IAS 39 with a forward-looking ‘expected credit loss’ (ECL) approach introduced significant complexity. However, years on, it’s increasingly clear that IFRS 9 has moved beyond […]

The introduction of IFRS 9 Financial Instruments marked a seismic shift in global financial reporting, nowhere more evident than in the credit-intensive South African banking sector. Replacing the old “incurred loss” model of IAS 39, the new Expected Credit Loss (ECL) model requires financial institutions to proactively provision for potential future credit losses, fundamentally reshaping […]

1. The Financial Revolution: From “Incurred” to “Expected” For decades, the standard way businesses accounted for potential customer defaults—or bad debts—was using the old Incurred Loss Model (under IAS 39). This approach was fundamentally reactive: a provision for a loss was only made once a trigger event occurred, such as a missed payment, a legal […]

The financial landscape across the globe is constantly evolving, driven by new regulations, technological advancements, and shifting economic paradigms. In Saudi Arabia, a nation deeply rooted in Islamic principles, the financial sector operates under a unique blend of modern regulations and Sharia compliance. One significant development impacting this sector is the implementation of International Financial […]

Accounting standards rarely stir public debate, but in the dynamic banking sectors of East Africa, one regulation – IFRS 9 Financial Instruments – has emerged as a silent, yet powerful, force. Replacing the older “incurred loss” model, IFRS 9 mandates a forward-looking approach to credit provisioning, requiring banks to anticipate potential losses rather than reacting […]

The implementation of International Financial Reporting Standard 9 (IFRS 9) has introduced a paradigm shift in the way financial assets are classified, measured, and, most crucially, impaired. For banks across East Africa, this standard is a double-edged sword, simultaneously strengthening financial resilience through risk-aversion while posing a complex challenge to maintaining traditional growth models. IFRS […]

The Kingdom of Saudi Arabia’s financial sector is a cornerstone of its ambitious Vision 2030, aiming for a diversified, thriving economy. In this dynamic landscape, a crucial, yet often overlooked, factor strengthening the sector’s backbone is IFRS 9 Financial Instruments. Far from being a mere accounting update, IFRS 9 has profoundly reshaped how Saudi banks […]

Saudi Arabia’s financial system is changing quickly under Vision 2030. To make banks stronger and safer, the Saudi Central Bank (SAMA) gives rules that all banks must follow. One important rule is about how banks check for a Significant Increase in Credit Risk (SICR). This is part of the IFRS 9 standard. What is SICR? […]

Saudi Arabia’s banking and financial sector is growing quickly under Vision 2030. The Saudi Central Bank (SAMA) has set strict rules to make the financial system stronger and more transparent. One key rule is IFRS 9, which helps banks manage credit risk better. A main part of IFRS 9 is the idea of Significant Increase […]