What is IFRS9? and changes in Impairment process?

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Accepted Answer

IFRS9 is an international financial reporting standard that sets out guidelines for accounting for financial instruments.

IFRS9 introduces a new expected credit loss model for the impairment of financial assets.
Under the new model, financial assets are classified into three stages based on credit risk, with different impairment processes for each stage.
The impairment process involves estimating expected credit losses over the life of the financial asset.
IFRS9 requires entities to consider reasonable and supportable information that is relevant and available without undue cost or effort.
The standard aims to address the shortcomings of the previous incurred loss model by requiring earlier recognition of credit losses.

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