Author : Muzammal Rahim

The International Accounting Standards Board (IASB) has recently taken proactive steps to address the accounting challenges posed by renewable electricity contracts, aiming to ensure financial statements accurately reflect their impact on companies. Understanding the Proposal Renewable electricity contracts, including power purchase agreements (PPAs), play a vital role in securing access to renewable energy sources. However, […]

In the realm of banking and financial management, the Risk-Adjusted Return On Capital (RAROC) stands as a vital metric, offering insight into the efficiency and profitability of financial assets while considering the associated risks. Under the International Financial Reporting Standard 9 (IFRS 9), understanding RAROC becomes even more crucial due to its emphasis on expected […]

In the ever-evolving world of financial reporting, ensuring accurate and timely recognition of asset quality is paramount. IFRS 9, the international standard for financial instruments, plays a crucial role in this regard. This article delves deep into the concept of Significant Increase in Credit Risk (SICR) and its implications for the transition from Stage 1 […]

The United Arab Emirates (UAE) has established itself as a global financial hub. With its strategic location, strong infrastructure, and commitment to innovation, the UAE attracts significant foreign investment. However, this growth also brings heightened risks of money laundering and terrorist financing. To combat these threats and maintain its financial integrity, the UAE enforces strict […]

As a holding company, managing multiple subsidiaries and investments can be complex. IFRS 9, the new financial reporting standard, can help streamline your financial operations and provide a clearer picture of your group’s financial health. IFRS 9 Benefits for Holding Companies IFRS 9 offers several benefits for holding companies, including: Improved risk management IFRS 9’s […]

The International Financial Reporting Standard 9 (IFRS 9) has brought about significant changes in financial instrument accounting, offering numerous benefits to entities worldwide. Here are ten advantages of adopting IFRS 9: 1. Simplified Classification IFRS 9 streamlines the classification of financial assets, reducing categories from four to three, which simplifies accounting processes. 2. More Accurate […]

The International Financial Reporting Standard 9 (IFRS9) has been a significant milestone in financial reporting, aiming to enhance transparency, consistency, and comparability in financial statements. Since its inception, IFRS 9 has had a profound impact on financial institutions, altering the way they classify and measure financial instruments, particularly in terms of impairment calculations. Overview of […]

It’s Friday! Time to ditch the tie (metaphorically, at least) and loosen up a bit. But before you completely clock out and mentally swap your spreadsheets for pool floats, let’s chat briefly about IFRS 9 – that sometimes-confusing accounting standard for financial instruments. We know, “accounting standards” isn’t exactly the most exciting way to spend […]

The transition to IFRS 9 has brought a wave of questions and concerns for institutions navigating its complexities. Here, we tackle some of the most frequently asked questions about this critical standard: Challenge #1: Mastering the Expected Credit Loss (ECL) Model Question: How do I ensure my ECL calculations are accurate and consistent with IFRS […]

Financial institutions, brace yourselves! IFRS 9 isn’t going anywhere, and its forward-looking approach to expected credit loss (ECL) can be a double-edged sword. While it fosters transparency, those complex ECL calculations can leave you in a cold sweat. But fear not, there’s a hero in this story: Estimator9! ♀️ IFRS 9: The Necessary Evil? Kinda. […]