HKFRS/IFRS9 Implementation: Challenges for financial institutions
In July 2014, the International Accounting Standards Board (IASB) issued the final version of its new standard for Financial Instruments, IFRS 9. Subsequently in September 2014, the Hong Kong Institute of Certified Public Accountants also issued the same standard, HKFRS9 (2014) Financial instruments, so as to maintain convergence with IFRS.
The standard fundamentally changes the way businesses classify, measure and recognize impairment losses on their financial instruments. An effective implementation of HKFRS/IFRS 9 has many potential benefits. Similarly, a low caliber implementation runs the risk of undermining confidence in an institution’s financial results.
For institutions to successfully implement HKFRS/IFRS 9, they will have to undertake a large multi-disciplinary project combining the skills of finance, risk and IT which will present a significant challenge for companies, auditors and prudential regulators.
Read more about our insights in the publication below.
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