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Get ready for FRS 109 - the impairment requirements

FRS 109 ‘Financial Instruments’ fundamentally rewrites the accounting rules for financial instruments. It introduces a new approach for financial asset classification; a more forward-looking expected loss model; and major new requirements on hedge accounting.

With FRS 109 becoming mandatorily effective in Singapore from 1 January 2018, companies now really need to evaluate the impact of the new Standard. As well as the impact on reported results, many businesses will need to collect and analyse additional data and implement changes to systems.

This is the second in a series of publications designed to get you ready for FRS 109. In this issue, we bring you up to speed with the Standard’s new expected credit loss impairment model.

If you would like to view the first issue in the series, which focuses on IFRS 9's classification and measurement requirements, click here.