IFRS 9 provides guidance on the accounting for financial instruments. Prior to the issuance of IFRS 9, IAS 39 provided the guidance for financial instruments. The global financial crisis of 2008 exposed deficiencies of the accounting for financial instruments in IAS 39, and created pressures for the IASB to improve the accounting for financial instruments. Consequently, the IASB issued IFRS 9 in 2014 to replace IAS 39. The IASB made several major changes in the accounting for financial instruments in IFRS 9. One major change is the impairment model for financial assets. Required Explain how the impairment model in IFRS 9 addresses the criticisms of the impairment model in IAS 39.

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IFRS 9 applies a single impairment model to all financial instruments subject to impairment testing ... View the full answer