This presentation looks at IFRS 9 and FASB reporting in terms of credit losses for financial instruments. The IFRS 9 is in full effect January 1, 2018 for those companies that report under IASB.

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© 2014 IBM Corporation
IFRS # 9 – Financial Instruments
Reporting
Presenter: Paul Young, CPA, CGA – Proven Practice Adviser – Risk
Analytics, FOPM/FPM and Close, Consolidate and Reporting
Date: February 13, 2017

2. © 2012 IBM Corporation
Agenda
September 9,
2014
• What is IFRS 9?
• IFRS 9 and FASB
• Filing Date
• IFRS 9 and IFRS 39 Flow
• IFRS 9 / Algorithmics
• IFRS 9 / Cognos Disclosure Management

3. © 2012 IBM Corporation
Author / Bio
September 9,
2014
• Paul Young, CPA, CGA
• SME – Financial Performance Management (TM1, Cognos Controller and
Cognos Disclosure Management, OpenPages, Algorithmics, Cognos
Integrated Server, Cognos Command Center and Datawatch)
• Industry Experience
• 15+ years in Corporate Reporting, Budget & Forecasting, Costing,
Business Process Management, Internal Audit and Controls, Risk
Management, Financial Analysis, Costing
• 11+ years in financial solutions (FOPM, FPM, Risk, Office of the
Finance, Risk Management)
• 8+ years teaching Advance Finance, Advance Accounting, Public
Finance and Advance Management Information Systems
• Blogger in areas like Finance Analysis, Government policies, market
segment

4. © 2012 IBM Corporation
What is IFRS – 9
September 9,
2014
• The International Accounting Standards Board (the Board) completed the final element
of its comprehensive response to the financial crisis with the publication of IFRS 9
Financial Instruments in July 2014. The package of improvements introduced by IFRS 9
includes a logical model for classification and measurement, a single, forward-looking
‘expected loss’ impairment model and a substantially-reformed approach to hedge
accounting

5. © 2012 IBM Corporation
IFRS 9 and FASB (Financial Accounting Standards Board)
September 9,
2014
Until June 2012, the FASB and IASB jointly deliberated an expected-loss
impairment model, which was broadly similar to the impairment approach in
IFRS 9, Financial Instruments, issued by the IASB in 2014. In response to
feedback from U.S. constituents on the joint model, however, the FASB decided
to develop an alternative expected credit loss model. Accordingly, the FASB’s
new credit impairment approach differs from that under IFRSs. Although both
impairment models are based on expected credit losses, the FASB’s impairment
model would require entities to recognize current expected credit losses for all
assets, not just those for which there has been a significant increase in credit
risk since initial recognition.

6. © 2012 IBM Corporation
Filing Date - January 1, 2018 (IFRS) and Canada (October 31,
2017)
September 9,
2014
Souce - http://itincanadaonline.ca/index.php/c-level-insight/1694-canadian-
lenders-face-huge-analytics-task-in-upcoming-ifrs-9

7. © 2012 IBM Corporation
IFRS 9 / 39 Calculation Flow
September 9,
2014
Classification
• Calculation – Market Value – Financial Statement
• Reporting
• Other Comprehensive Reporting (OCI)
• Notes to Financial Statement
• Filings to Regulators (Basel Reporting, SEC and Government
• Reporting tool
• XBRL
• Template
• Testing Market Value
• Verification
• Credit loss

8. © 2012 IBM Corporation
Algorithmics / Solution – IFRS 9 – Financial Instrument Calculation
September 9,
2014
Source - http://www-03.ibm.com/software/products/en/algofinamode

9. © 2012 IBM Corporation
Cognos Disclosure Management
September 9,
2014
• IFRS 9
• Template Reporting
• Notes to the financial statement
• IFRS 9 schedule by financial instrument type
• XBRL Filing
Source - http://www-
03.ibm.com/software/products/en/cognos-disclosure-
management

10. © 2012 IBM CorporationSeptember 9,
2014
• Additional Sources
• Paul Young (email: paul.young@ca.ibm.com)
• IBM Close, Consolidating and Reporting, Risk and Planning Analytics
• http://www.ibm.com/analytics/us/en/business/financial-reporting/
• http://www-03.ibm.com/software/products/en/planning-analytics
• http://www.ibm.com/analytics/us/en/business/governance-risk-
compliance/
• Reporting Pain Points -
http://www.slideshare.net/paulyoungcga/reporting-challenges-for-
accounting-and-finance-january-2017