Published Paper Details:

International Financial Reporting Standard-9 (IFRS 9): Financial instruments came in to force on 1st January 2018. IFRS 9 consists of three phases, dealing separately with the classification and measurement of financial instruments, impairment and hedging. This paper aims to study on classification and measurement of financial instruments and its impact. The findings of the study indicate that the classification and measurement of financial instruments of the new standard are based on the business model and supported by the cash-flow characteristics where the previous accounting standard was built on pre-defined asset class categories. It necessarily leads to the fact that the implementations of IFRS 9 raise the issue of fair value measurement with the changing effect in profit and loss. As a result the risk of income volatility will rise but ultimately the provision of minimizing credit losses will strengthen the financial position of the firm.