Can IFRS 9 - Financial Instruments impact your company’s existing leverage ratio?
Ramanujam Narayan
CEO, CFO at Contetra| Helping CFOs to Save Time & Costs with ERP Implementations & Re-implementations, Process Optimizations| Enabling FIN leaders with IndAS/IFRS /GAAP Advisory, Batch Training & Contractual Resourcing
While it is a general perception in the financial world that IFRS 9 – Financial Instruments could result in volatility in reported income of many companies (on account of assets being measured at fair value, and resulting change being reflected in the statement of profit and loss) – there is another significant impact of this standard on the “leverage” ratio on the financial statements of many companies.
In this article, get interesting insights on the following:
1.How one of the biggest Indian conglomerates aspires to become a debt-free company?
2.How the Steel Industry is impacted by a Major Wave of Deleverage?
3.How a major entertainment conglomerate’s Debt Equity ratio was adversely impacted after adopting IFRS 9?
Read this blog to understand the implications of IFRS 9 on debt-equity ratios, so that you are in a better position to assess the following:
-Whether such class of Preference shares exist in your organization?
-Whether you have classified it accordingly?
- If classified correctly, whether you have been accounting for it appropriately?
-Did such a reclassification impact your company’s leverage ratio?
Continue Reading Further for Detailed Case Studies & Examples on IFRS 9 at:
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