The approach in IAS 39 to the impairment of financial assets was flawed because it did not

Question:

The approach in IAS 39 to the impairment of financial assets was flawed because it did not allow financial institutions to recognize the true losses they expected on loans at the time they had made the loans. How does the final version of IFRS 9 address this?
Discuss.
Notes
1. IAS 32 Financial Instruments: Disclosure and Presentation, IASC, revised 1998.
2. IAS 32 Financial Instruments: Presentation, IASC, 2005, para. 4.
3. Ibid., para. 11.
4. Ibid., para. 16.
5. Ibid., para. 28.
6. Ibid., para. 42.
7. IFRS 7 Financial Instruments: Disclosure, IASB, 2005.
8. S. Fearnley and S. Sunder, 'Bring back prudence', Accountancy, vol. 140 (1370), 2007, pp. 76-77.