Adoption & Implementation
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IFRS 9: Financi al Instru ments. This standard replaces IAS 39 Recognitio n and Measurem ent and introduces a logical
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approach for the classificatio n of financial assets, which is driven by cash flow characteris tics and the business model in which an asset is held and applicable to business in all industry segments in general.
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Our specialists are able to explain you the new “Expected Credit Loss” model for financial assets impairmen t, the impact of the business model on accounting and the consequen ces of fewer categories for assets.
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There are a number of decisions and choices to be made at the transition to the new standard but some good news: hedge accounting rules have been eased. Banks and ďŹ nancial institutions are most affected but all
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other corporates need to consider the new requireme nts as well. Our service on IFRS 9 follows the three main aspects of the standard; Classifi cation and measur ement of financi al assets
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Applyi ng the expect ed credit loss model to financi al assets Calcula tion of impair ment. Classification and measurement: IFRS 9 will require financial assets to be measured
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• at amorti sed cost or •f a i r v a l u e t h r o u g h o t h
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e r c o m p r e h e n s i v e i n c o m e ( F T
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V O C I ) o r • fair value throug h profit and loss (FTVPL ) Fair value changes will be routed through profit or loss for FVTPL
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financial instrument s or taken to OCI with no recycling for FVTOCI financial instrument s. FVTOCI depends on the business model for certain assets but an irrevocable election at initial recognitio n for other assets.
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There are no much complex ities involved in classiďŹ c ation but the entities need to exercise this with utmost caution at this stage. Impairment: IAS 39 followed an incurred loss model
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where impairmen t is calculated based on the existing conditions whereas as part of IFRS 9, the IASB has introduced a new expected -loss impairmen t model that will require more timely recognitio n of expected
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credit losses. Specifically , the new standard requires entities to account for expected credit losses from when financial instrument s are first recognized and to recognize full lifetime expected losses on a more timely basis.
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Moving to an expected credit loss model is a significant challenge, particularly for banks and other ďŹ nancial institutions . There are a number of decisions and choices to be made at the transition to the new standard. Our experts
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can help you in all the stages of this standard and help you through a smooth transition.
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SIMPLIFYING FINANCIAL COMPLEXITIES, SINCE 1999 We commenced operations in the year 1999 and since the time of inception, we have always focused on one thing and that is creating and sustaining values through everlasting relationships. Driven by a strong determination to meet any challenge faced by our clients,
w e s t e e r t h e o r g a n i z a t
ion’s growth by offering practical solutions in the areas of ďŹ nance and consulting. Our extensive experience in working with clients from different sectors, regions and technologically superior systems will give your business the required pace and strategic direction to go beyond.
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ember of HLB International, a leading network of independent professional accounting firms and business advisers. Formed in 1969, HLB International (HLBI) ranks among the top 12 international accounting networks, serving clients through its member firms. The network comprises member firms in over 150 countries that collectively have more than 25,000 staff including partners
a c r o s s 7 0 0 + o f fi c e s . W i t
h HLBI’s global care approach, you get quality professional services that adhere to international standards. If you have a global presence or plan to expand your operations to other countries, you can be sure of seamless and costefficient support from our member firms across the world.
AU DI T l TA X l CO NS UL TI N G
Our Experts S U M E S H K R I S H N A P A R T N
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E R
A thorough profession al with 20 years of experience in the Audit and Advisory services including IFRS implement ations, risk managem ent, quality assurance and forensic
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accountin g domain. Sumesh holds a Master’s Degree in Commerce and is a Certified Managem ent Accountan t from IMA. He possesses in-depth knowledge and experience in the developm ent of
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accountin g systems, ďŹ nancial planning and managem ent consultanc y projects that HLB Hamt undertake s. N I T H I N N K
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D I R E C T O R
Fellow Member of ICAI has 13 years of experience in accounting and auditing profession. He has managed clients in different industry verticals and well experienced in IFRS related
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projects and advisory services. Prior to his position in HLB Hamt, he had worked in an international clothing brand and F&B chain in UAE where he gained experience in the retail industry. In addition to accounting and auditing profession, Nithin has experience in business consulting with emphasis on business valuation, IFRS compliance and systems designs.
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A S H T O N M A D I Y I K O S E N I O R A U D I
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T O R
Ashton is a trained and qualified Accountant based at our Dubai Office in our Audit and Assurance department with +10 years’ experience in banking, insurance and manufacturing. Ashton also involved in many IFRS implementation projects especially in real estate,
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banking financial institutions
and
He is a member of the Association of CertiďŹ ed Chartered Association (ACCA) and holds an MBA from Anglia Ruskin University in Cambridge from United Kingdom.
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