By Elysys
July 3, 2014
IFRS 9 now finalised

In July 2014 the International Accounting Standards Board has published the final version of IFRS 9, which will replace IAS 39 Financial Instruments: recognition and Measurement. IFRS 9 is effective for annual periods beginning on or after 1 January 2018, but it is available for application earlier.

Essentially it affects the way financial assets - including embedded derivatives - are classified and measured. The aim of the standard is to provide a rule-based approach to the reporting process, with a single impairment model, thus enabling the users of financial statements to understand more easily the relevant financial asset information. The intention of the standard is to base the rules on the business model and the nature of the related cash flows, thus providing simplicity to the reporting entity and clarity to the reader of the financial statement.

IFRS will become increasingly important as a choice of accounting practice application, even for entities that are not obliged to comply with it, e.g. family offices. At Elysys we have recognised that from the early days and ensured that our solution satisfies IFRS requirements, with minimal effort required by the users at the end of the relevant accounting period to make the necessary adjustments. Contact us to find out more about NAVInvest and IFRS compliance.

Topics: family office software, portfolio accounting software