IFRS 9

The introduction of IFRS 9 Financial Instruments marked a significant paradigm shift in how financial institutions account for financial instruments, particularly credit losses. Moving from an ‘incurred loss’ model to a forward-looking ‘expected credit loss’ (ECL) approach, IFRS 9 aimed to enhance financial stability by mandating earlier recognition of potential losses. While the global rationale […]

The introduction of IFRS 9 Financial Instruments marked a significant shift in accounting for banks and financial institutions globally, moving from an “incurred loss” model to a more prudent “Expected Credit Loss” (ECL) model. In the United Arab Emirates, the Central Bank of the UAE (CBUAE) plays a crucial and active role in ensuring robust […]

The International Financial Reporting Standard 9 (IFRS 9), introduced globally to replace the older “incurred loss” model of IAS 39, represents one of the most significant shifts in modern financial accounting. It mandates a forward-looking Expected Credit Loss (ECL) model, requiring banks to provision for potential loan losses from the moment a loan is originated. […]

The financial services sector in the United Arab Emirates (UAE) operates under a strong mandate for adopting global financial best practices. The transition to the International Financial Reporting Standard 9 (IFRS 9) has been one of the most significant regulatory shifts, fundamentally changing how banks and financial institutions in the UAE account for and manage […]

In the dynamic world of global finance, accounting standards serve as crucial guideposts, promoting transparency and stability. One such standard, International Financial Reporting Standard 9 (IFRS 9), ushered in a paradigm shift for how financial institutions recognize and measure financial instruments. While universally lauded for its forward-looking approach to credit risk, its implementation in East […]

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 […]