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In a very brief wording, IFR9 IFRS9 affects more than just financial institutions. Any entity could have significant changes to its financial reporting as the result of this standard. That is certain to be the case for those with long-term loans, equity investments, or any non vanilla financial assets. It might even be the case for those only holding shortterm receivables. It all depends. Possible consequences of IFRS9 include:
• More income statement volatility. IFRS9 raises the risk that more assets will have to be measured at fair value with changes in fair value recognized in profit and loss as they arise.
• Earlier recognition of impairment losses on receivables and loans, including trade receivables. Entities will have to start providing for possible future credit losses in the very first reporting period a loan goes on the books – even if it is highly likely that the asset will be fully collectible.
• Significant new disclosure requirements—the more significantly impacted may need new systems and processes to collect the necessary data.
N.B. (Answer is subtructed from PWC published article).
