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IFRS9, Financial Instruments: Classification andMeasurement
IFRS 9 will in the future replace the current part of IAS 39 relating to classification and
measurement. There are very significant differences with respect to the current standard,
in relation to financial assets, including the approval of a new classificationmodel based on
only two categories, namely instruments measured at amortised cost and thosemeasured
at fair value, the disappearance of the current “held-to-maturity investments” and
“available-for-sale financial assets” categories, impairment analyses only for assets
measured at amortised cost and the non-separation of derivatives embedded in financial
asset contracts.
In relation to financial liabilities, the classification categories proposed by IFRS 9 are
similar to those currently contained in IAS 39 and, therefore, there should not be any very
significant differences except, in the case of the fair value option for financial liabilities, for
the requirement to recognise changes in fair value attributable to own credit risk as a
component of equity.
There will also be major changes in relation to hedge accounting, since the approach of
IFRS 9 is very different from that of the current IAS 39 in that it attempts to align hedge
accountingwith economic riskmanagement.
The Group is currently analysing the future impact of the adoption of this standard and
foreseeably it will not have amaterial impact on the consolidated financial statements
Amendments to IAS 36 – Recoverable Amount Disclosures for Non-Financial
Assets
The IASB proposes to restrict the current disclosure of the recoverable amount of an asset
or cash-generating unit to periods in which an impairment loss has been recognised or
reversed, i.e. it eliminates the current requirement of disclosure when there has been no
impairment or reversal. It also introduces new disclosure requirements for when the
recoverable amount has been calculated as fair value less costs of disposal and an
impairment loss has been recognised or reversed. The following disclosures are now
required:
• The level of the IFRS 13 hierarchywithinwhich the fair value has beenmeasured.
• For fair value measurements categorised within Level 2 or Level 3, a description of the
valuation techniques and key assumptions used, as well as the current and previous
discount rates.
The entry into force of these amendments will not have a significant impact for the Group.
Amendments to IAS 39 - Novation of Derivatives and Continuation of Hedge
Accounting
The purpose of these amendments is to ease the requirements to discontinue hedge
accounting when a derivative must be novated with a central clearing counterparty or an
entity acting in a similar capacity as a consequence of legal requirements. The
amendments state that the novation of a hedging instrument should not be considered an
expiration or termination giving rise to the discontinuation of hedge accounting when the
hedging derivative is novated:
