The New Impairment Model Under IFRS 9 and CECL

As part of the response to the last financial crisis, the International Accounting Standards Board (IASB) finalised it's new standard - IFRS 9 - in July 2014.

The package of improvements introduced by IFRS 9 includes a logical model for classification and measurement, a single, forward-looking 'expected loss' impairment model and a substantially-reformed approach to hedge accounting.

This title focuses specifically on the second part of the package of improvements. It discusses the new requirements for measuring the impairment of financial assets and highlights the challenges faced by institutions in implementing the new accounting requirements.

The book features contributions from a number of industry experts. The topics they cover include:

- The FASB's current expected credit loss (CECL) model for impairment

- The challenges faced by institutions in implementing the new requirements, and options for overcoming them

- Business impacts of the new requirements on financial institutions - ranging from loan origination, renewal and pricing to earnings and capital management

- How institutions can prepare themselves for these impacts

Why should you purchase a copy?

Anyone involved in the implementation process can apply techniques from the book directly, borrow ideas, and benchmark their own approaches.

Readers not involved in direct implementation but affected by subsequent impacts will be better prepared for the changes.

Auditing and consulting firms and other service providers will learn how to design better products and services for clients.

Regulators and those working at supervisory bodies will gain a better understanding of industry practices and business implications.

Academics will be able to better frame their research efforts and to construct more practical and relevant research topics.