The fundamentals of IFRS 9
Updated: January 21, 2025
Summary
IFRS 9 is a crucial accounting standard that centers around financial instruments. This includes equity investments in company shares with accounting options like fair value through profit or loss. Additionally, debt investments such as bonds are covered, with accounting treatment choices of fair value through profit or loss, amortised cost, and fair value through other comprehensive income.
TABLE OF CONTENTS
Introduction to IFRS 9
IFRS 9 is a complex accounting standard that focuses on financial instruments. This chapter provides an overview of IFRS 9 and its importance in accounting practices.
Equity Investments
This chapter discusses equity investments in shares of a company and the two accounting options available: fair value through profit or loss and fair value through other comprehensive income.
Debt Investments
Debt investments such as bonds with interest elements are explained in this chapter, detailing the accounting treatment options of fair value through profit or loss, amortised cost, and fair value through other comprehensive income.
FAQ
Q: What is IFRS 9?
A: IFRS 9 is a complex accounting standard that focuses on financial instruments.
Q: Why is IFRS 9 important in accounting practices?
A: IFRS 9 is important in accounting practices because it provides guidelines for accounting treatment of financial instruments.
Q: What are the two accounting options available for equity investments?
A: The two accounting options available for equity investments are fair value through profit or loss and fair value through other comprehensive income.
Q: How are debt investments such as bonds with interest elements treated under IFRS 9?
A: Debt investments such as bonds with interest elements can be treated under IFRS 9 using options like fair value through profit or loss, amortised cost, and fair value through other comprehensive income.
Get your own AI Agent Today
Thousands of businesses worldwide are using Chaindesk Generative
AI platform.
Don't get left behind - start building your
own custom AI chatbot now!