Problem-

The IASB is in the process of undertaking a comprehensive review of accounting for financial instruments, and has issued a new financial instruments standard referred to as IFRS 9 Financial Instruments. IFRS 9 (AASB 9) was issued to replace IAS 39 (AASB 139) Financial Instruments: Recognition and Measurement. IFRS 9 (AASB 9) is applicable to annual reporting periods beginning on or after 1 January 2013, although early adoption is permitted.

Required:

Discuss critically the shortcomings and criticisms of IAS 39 (AASB 139) which have given rise to IFRS 9 (AASB 9). How will the application of IFRS 9 (AASB 9) impact on the accounting for financial instruments in financial reports? Your discussion should be illustrated and informed by reference to two listed companies (ASX or other sources for the most recent years), that are either using IAS 39 (AASB 139) or that have decided to early adopt IFRS 9 (AASB 9). Your discussion should also consider the views of a range of researchers and accounting users, and be appropriately referenced from authoritative sources.

Additional information-

This problem belongs to Accounting and it discuss about writing a 2000 word report on the shortcomings and criticisms of IAS 39 (AASB 139) and the reasons that have given rise to the IFRS 9 (AASB 9) and how the application of IFRS 9 (AASB 9) can impact accounting for financial instruments in financial reports.

Word limit- 2000.