2016-09-16

Application of IFRS 9 Financial Instruments for Québec Financial Institutions

The Autorité des marchés financiers requires Québec-chartered financial institutions to rigorously apply IFRS 9 Financial Instruments, which replaces IAS 39 and introduces a new classification model, an expected loss impairment approach, and revised hedge accounting. The Authority mandates that institutions limit the use of practical expedients to avoid significant biases, ensuring credit risk assessments reflect forward-looking indicators rather than relying solely on the 30-day past-due rebuttable presumption. Furthermore, institutions must leverage their specialized knowledge and internal controls to measure expected credit losses without undue cost or effort while aligning with Basel Committee on Banking Supervision guidance.

Canada

Autorite des marches financiers Quebec

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