• IFRS Advisory - Natural Resources

Application of IFRS 9 to the natural resources sector

04 September 2019

The origins of IFRS 9 Financial Instruments stem from the global financial crisis and is a very significant standard for the banking sector. Whilst the impact on IFRS 9 is not as great on nonfinancial entities, those in the natural resources sector should not ignore its impacts.

The key features of IFRS 9 to be considered by those in the natural resources sector include:

  • Moving from an incurred loss model to a predicted loss model
  • The strict rules as to which financial assets can be recorded at amortised cost
  • Investments in unlisted shares to be recorded at fair value
  • Simplified hedge accounting rules

See the full report here.

For more information on BDO's global IFRS advisory practice - Click Here

Video Series

Disaggregation of Revenue - Mining By Wayne Basford

Disaggregation of Revenue - Oil & Gas By Susan Oldmeadow - Hall

IFRS 9 - Loans to Associates & JV Issues - By Wayne Basford

Impacts of IFRS 15 on Revenue Recognition in Mining - By Susan Oldmeadow-Hall

IFRS Issues For The Natural Resources Sector - What Does Control Mean? By Wayne Basford