IFRS 9 Financial Instrument

IFRS 9, Financial Instruments
– Financial assets and financial liabilities are classified on initial recognition. This classification drives subsequent measurement of the instruments.
– Financial assets are classified as either measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss.
– Reclassifications are permitted only if there is a change in the entity’s business model for holding the financial asset.
– The financial statements should reflect the general pattern of deterioration or improvement in the credit quality of financial instruments within the scope of IFRS 9.
The impairment model in IFRS 9 is based on the premise of providing for expected losses.