ACCOUNTING TREATMENT OF DERIVATIVES UNDER IFRS 9 STANDARDS
Keywords:
IFRS 9, derivatives, hedge accounting, fair value, financial instruments, recognition, classification, risk management, financial reporting.Abstract
This paper provides a comprehensive analysis of how derivatives are accounted for under the International Financial Reporting Standard 9 (IFRS 9), which replaced IAS 39 in 2018. It explores the principles guiding recognition, classification, and measurement of derivative financial instruments, along with the implications of hedge accounting provisions introduced by IFRS 9. The article highlights the challenges entities face in applying fair value measurement, managing volatility in profit and loss, and ensuring compliance with disclosure requirements. Additionally, the study investigates how IFRS 9 enhances transparency and risk representation in financial statements, while also addressing limitations in its practical application across industries.
References
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