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.
The original version of IFRS 9 would have made it considerably more difficult for insurance companies to classify assets at "amortised cost". The new standard would have led to competitive distortions within economic sectors.
The IASB published a draft of amendments to IFRS 9 "Financial instruments" in November 2012 that include in particular the introduction of a new measurement category for debt instruments, "fair value through other comprehensive income". The intent is to make it possible to recognise debt instruments at fair value through other comprehensive income in the future. The proposal would allow insurance companies with financial assets recognised at fair value through other comprehensive income to show information at amortised cost in the income statement, while reporting the assets at fair value in the balance sheet. Moreover, debt instruments recognised at fair value through other comprehensive income would be subject to the same impairment model as assets recognised at amortised cost.
The IASB further amended the standard during completion of the various phases of its comprehensive project on financial instruments in order to produce a full replacement for IAS 39 Financial instruments "Recognition and measurement".
The IASB also deferred the date of mandatory initial application of IFRS 9 Financial instruments to reporting periods beginning on or after 1 January 2015. Early application is permitted. 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.
