IFRS stands for International Financial Reporting Standards. IFRS are a set of accounting standards that are used by companies and organizations all over the world. They provide a common framework for reporting financial information, which helps to ensure that investors and other stakeholders have access to reliable information.
IFRS 9: Financial Instruments is the IASB's standard that specifically addresses securitisation. It provides guidance on how to account for securitisation transactions, including the measurement of assets and liabilities, the recognition of income and expenses, and the disclosure of information.
Here are some of the applications of IFRS 9 in securitisation:
- To ensure that securitisation transactions are accounted for in a consistent manner
- To provide investors with reliable information about securitisation transactions
- To help to reduce the risk of financial reporting errors
- To facilitate the cross-border trading of securitisation securities
IFRS 9 is an important part of the global securitisation framework. It helps to ensure that securitisation transactions are accounted for in a consistent manner and that investors have access to reliable information. This helps to promote transparency and efficiency in the securitisation market.