In July 2014, the IASB issued the new IFRS 9 accounting standard that legislates financial instrument classification, measurement, impairment and hedge accounting  and which will replace the IAS 39 accounting standard.  The IFRS 9 application range involves all debt and equity financial instruments that were already included in the IAS 39 scope. The new standard will come into force as of 01/01/2018.

The IFRS 9 will have a number of new aspects compared to the current IAS 39 standard:

• new Business Model concept;
• new binding rules for classifying financial instruments in terms of the SPPI test (“Solely Payments of Principal and Interest”);
• new balance categories;
• new ways to measure financial instruments;
• new ways to calculate impairment.

These new entries in IFRS 9 will have a significant impact on Financial Institute Balances, especially in terms of a potentially considerable increase in Economic Statement volatility.

Furthermore, these new entries will also have heavy consequences on organisational procedures and company information technology systems.

In this context, CAD IT, thanks to its expertise and consolidated experience in developing IT solutions for financial instrument management, has defined its own Finance Area evolutionary strategy in order for it to be IFRS 9 compliant.

The software release is expected to be available in the second half of 2016.

To optimise the quality of its offer, CAD IT has organised a work group with leading Italian financial institutions in order to compare the impacts of the new regulation as well as the relative solutions.