IFRS 9, "Financial instruments", is concerned with the classification, recognition and measurement of financial assets and liabilities. IFRS 9 was published in November 2009, followed by a number of amendments, the last of which was published on 16 December 2011. It has not yet been adopted into European law.
This standard replaces the sections of IAS 39, "Financial instruments: recognition and measurement", concerned with the classification and measurement of financial instruments. In the future, under IFRS 9, financial assets will be assigned to the following categories at the time of initial recognition:
- Financial assets measured at fair value
- Financial assets measured at amortised cost
The provisions of IAS 39 dealing with the impairment of financial assets and accounting for hedging relationships continue to apply. New drafts in these areas are expected in 2012.
The IFRS 4 would force the insurance industry to apply volatile measurement rules. The current version of IFRS 9 would considerably complicate the classification of assets at "amortised cost". This would also have major effects on the VIG business model. The new standard would also lead to competitive distortions within economic sectors. Further detailed discussions are also being held with the IASB concerning IFRS 9.
The new provisions are applicable to financial years beginning on or after 1 January 2015. The effects of IFRS 9 on the presentation, net assets, financial position and results of operations of the Group are being monitored continuously by the Vienna Insurance Group Managing Board.