International Financial Reporting Standards 9
25 October 2023
IFRS 9 (International Financial Reporting Standards 9) is a global accounting standard developed by the International Accounting Standards Board (IASB) that addresses the classification and measurement of financial instruments, as well as how to account for impairment of financial assets.
IFRS 9 introduced a new approach to accounting for credit losses on financial assets, such as loans and trade receivables. The concept of Expected Credit Loss (ECL) is a central feature of IFRS 9's impairment model. ECL represents the amount of loss that an entity expects to incur on a financial instrument over its lifetime due to default events.