IFRS 9 Financial Instruments

Assisting with adoption and implementation.

IFRS 9 Financial Instruments significantly changes the financial reporting landscape for how entities account for financial instruments.

Entities need to be across the changes they need to make, in order to be able to prepare their financial statements using the new accounting standard. The changes required can be complex and have effects beyond just the accounting treatment.

Adoption of IFRS 9 involves the preparer making a number of choices as to how to apply the standard, including making a decision as to which transition route to employ. As the choices made will affect the way the performance of a business is measured and reported, it is vital to consider not only the commercial and practical issues, but also the tax implications of these changes.

Our experts in this area can help you establish the impacts of this new standard and advise on what actions you should be taking.


Impacts of IFRS 9 Adoption

The effect of adopting the new financial instruments standard raises many questions such as:

  • How will reported results be impacted?
  • Which financial assets need to be recorded at fair value?
  • Which processes and systems will need changing?
  • Should the standard be adopted early?
  • Which wider business planning activities will be affected?
  • Should this trigger an assessment of the entity’s risk management strategy (including hedging and hedge accounting)?
  • What staff training will be required?
  • How will current agreements be affected?


IFRS 9 – Industry Heat Map

As a guide the heat map below considers the relative level of impact and complexity when adopting IFRS 9.

red circleRed denotes a high level of potential impact and complexity.
amber circleAmber denotes a medium level of potential impact and complexity.
green circleDark teal denotes a low level of potential impact and complexity.



Receivables that fail SPPI* test

Measurement of unlisted equity investments

Impairment of short term receivables

Impairment of long term receivables



green circleamber circlegreen circlegreen circlered circle


green circleamber circleamber circlegreen circlered circle


red circlered circleamber circlegreen circlegreen circle

Building and construction

red circleamber circleamber circleamber circlered circle

Residential real estate construction

red circleamber circleamber circleamber circlered circle


green circleamber circleamber circleamber circlered circle


red circlered circlegreen circlegreen circlered circle

Professional Services

green circlegreen circleamber circlegreen circlegreen circle

*Soley payments of principal and interest

Steps to Implementation

The adoption of IFRS 9 should be viewed as three very distinct projects:

  • Classification & Measurement 
  • Impairment
  • Hedging

More information on IFRS 9 can be found under Accounting Standards Training and IFRS Publications.

Contact our team

Our Financial Reporting Insights keeps you up to date with the latest New Zealand and global developments in financial and sustainability reporting.