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The new IFRS9 regulation introduces changes to trade credit risk accounting. Find out the essential information for your business, practical tips and proposed solutions.

Trade credit risk accounting in the new world of IFRS9

From January 2018, companies reporting under the International Financial Reporting Standards (IFRS) will be required to upgrade their current credit risk provisioning processes to comply with the requirements of the new ‘expected credit loss impairment principles’.

Apart from the direct impact on how businesses calculate bad debt provisions, the new standard also increases the disclosure requirements that companies will have to include in their financial statements in the future. In order to comply with the requirements, businesses will need to adopt a more dynamic approach to credit risk management. Moreover, it is likely that the new practices will require companies to modify not only accounting policies but also credit management systems.

 

How can businesses improve their performance and comply with the IFRS9 Impairment standard?

A series of articles provide essential information about the main changes and challenges of IFRS9, and propose solutions and practical tips to businesses.

 

Read more about IFRS9 and how it impacts business