IFRS 9: Improvement or Detriment to Reporting of Financial Instruments?

The objective of this research paper is to analyze whether the implementation of IFRS 9 has enhanced the ability of users to account for their financial instruments. In replacing IAS 39, the new standard aimed to decrease complexity, while improving understandability and comparability for users. This report will aim to uncover whether the new standard enhances the stakeholders ability to understand and apply the accounting of financial instruments. We look to accomplish this by examining specific qualitative characteristics from the IFRS Framework.The areas of focus will be on the adaptations from IAS 39 to IFRS 9, which are: changes in scope, classification, measurement and the impairment methods. Changes in the accounting for hedged instruments will not be explored in this report. The analysis will seek to determine if IFRS 9 improves comparability of financial assets and liabilities of different companies across different industries. This report is also designed to shed light on the impact of IFRS 9 to financial reporting. Ultimately, we want to uncover whether IFRS 9 has improved the financial reporting landscape as compared to IAS 39.