IFRS 9: FUTURE FINANCIAL INSTRUMENT

(SIGNIFICANT FOR BANKS AND FINANCIAL INSTITUTIONS)

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CURRENT STATUS

  • IFRS 9 has been issued for financial assets
  • Standards relating to financial liability, impairment, derecognition and hedging will be issued in a phased manner
  • Impact of IFRS 9 on banks are significant

HELD TO MATURITY CLASSIFICATION

  • Banks have to invest in government securities to comply with RBI’s prudential norms
  • As per current RBI rules, such investments are accounted for at ‘amortized cost’. More >