IFRS 9 Financial Instruments / NZ IFRS 9
|
|
| Regulator |
IASB / XRB |
| Jurisdiction |
Global |
| Status |
live |
| Applicability |
Platform |
IFRS 9, issued by the International Accounting Standards Board (IASB) and effective from 1 January
2018, replaced IAS 39. In New Zealand, it is adopted as NZ IFRS 9 by the External Reporting Board
(XRB); in Australia, it is AASB 9. All registered banks and licensed deposit takers in both
jurisdictions are required to apply IFRS 9 in their financial statements.
IFRS 9 has three major components:
Classification and measurement — financial assets are classified into amortised cost, fair value
through other comprehensive income (FVOCI), or fair value through profit or loss (FVTPL) based on
the business model and the cash flow characteristics test (SPPI). Most bank loans are held at
amortised cost.
Impairment — the expected credit loss (ECL) model replaces the IAS 39 incurred loss model.
Loans are staged: Stage 1 (performing, 12-month ECL), Stage 2 (significant increase in credit risk
since origination, lifetime ECL), Stage 3 (credit-impaired, lifetime ECL on a cash-flow basis).
Stage transitions are triggered by significant deterioration events (e.g. 30 days past due rebuttable
presumption, downgrade below internal threshold). Day 1 ECL is recognised at origination for Stage 1.
Provisions must be posted to the general ledger and included in regulatory capital calculations.
Hedge accounting — simplified requirements for qualifying hedging relationships. The bank's
interest rate hedging programme is the primary application.
Compliance register
This register maps every material obligation under IFRS 9 to the platform control or institutional
process that satisfies it. It is the static traceability layer for the Totara compliance report —
dynamic data (module build status, test evidence, control test dates) is overlaid at runtime.
Scope legend
| Symbol |
Meaning |
| 🤖 Automated |
Platform enforces or performs the obligation. Primary control mode is GATE, AUTO, CALC, or ALERT. Human action is not required in the normal case. |
| 📊 Evidenced |
Platform captures the evidence trail automatically. Human compliance decision sits on top. Primary control mode is LOG. |
| 🏛 Institutional |
Obligation is met by a process entirely outside the platform — external audit, board sign-off, accounting policy. Platform may generate evidence inputs but does not own the process. |
| N/A |
Obligation does not apply to this deployment configuration. |
Build legend
| Symbol |
Meaning |
| ✅ |
Module built and deployed |
| 🔨 |
Module planned — not yet built (build_status: Not started) |
| ❌ |
Uncontrolled gap — no module attributed |
Classification and measurement
| Ref |
Obligation |
Scope |
Policy |
Platform controls |
Build |
| IFRS9 s.4 — Classification |
Classify financial assets under business model and SPPI test; document classification rationale at origination |
🏛 Institutional |
REP-004 |
Classification decisions are accounting policy matters requiring CFO / external auditor sign-off; MOD-001 records assets at origination; classification mapping is a configuration decision |
— |
| IFRS9 s.5 — Measurement |
Measure financial assets at amortised cost, FVOCI, or FVTPL consistently with classification; apply effective interest rate method |
🤖 Automated |
REP-004 |
MOD-001 (LOG) — every posting recorded as a ledger entry; MOD-080 (AUTO) — statutory financial statements produced from the Snowflake analytical layer; provision entries in GL sourced from validated model |
🔨 |
Impairment — Staging
| Ref |
Obligation |
Scope |
Policy |
Platform controls |
Build |
| IFRS9 s.5.5.3 — Stage allocation |
Allocate all financial instruments to Stage 1, 2, or 3 at each reporting date based on change in credit risk since origination; apply 30-day DPD rebuttable presumption for Stage 2 |
🤖 Automated |
CRE-006 |
MOD-030 (AUTO) — staging criteria applied consistently to all loans, no subjective stage assignment; criteria are code, not agent discretion |
🔨 |
| IFRS9 — Stage triggers |
Detect and process stage transition events continuously; triggers include days past due, rating downgrade, forbearance, and early warning indicators |
🤖 Automated |
CRE-006 |
MOD-065 (AUTO) — tracks loan stage transitions (current → arrears → default) and triggers the impairment events that feed the ECL engine; MOD-030 processes staging criteria |
🔨 |
| IFRS9 — Collateral |
Maintain register of pledged collateral linked to each exposure; reflect net exposure in ECL calculation |
📊 Evidenced |
CRE-006 |
MOD-030 (LOG) — maintains the register of pledged collateral linked to each exposure, including current valuation and haircut; MOD-030 (CALC) — recalculates net exposure continuously as utilisation changes |
🔨 |
Impairment — ECL calculation
| Ref |
Obligation |
Scope |
Policy |
Platform controls |
Build |
| IFRS9 — 12-month ECL |
Calculate 12-month ECL for Stage 1 instruments at each reporting date; day 1 ECL recognised at origination |
🤖 Automated |
CRE-006 |
MOD-031 (CALC) — ECL calculated at loan level daily, no quarterly manual assessment; day 1 ECL computed at origination |
🔨 |
| IFRS9 — Lifetime ECL |
Calculate lifetime ECL for Stage 2 and Stage 3 instruments; forward-looking macro-economic scenarios incorporated |
🤖 Automated |
CRE-006 |
MOD-031 (CALC) — lifetime ECL applied for Stage 2 and Stage 3 instruments with macro-economic scenario weightings |
🔨 |
| IFRS9 — GL posting |
Post provision movements as journal entries to the GL; no manual provision entries |
🤖 Automated |
CRE-006, REP-004 |
MOD-031 (AUTO) — provision entries in GL sourced from validated model, no manual provision entries; MOD-030 (AUTO) — IFRS 9 provision movements posted to GL automatically |
🔨 |
| IFRS9 — Capital link |
Stage 3 exposure and ECL provisions flow into RWA and capital calculations without manual re-entry |
🤖 Automated |
CRE-006 |
MOD-030 (CALC) — Stage 3 exposure feeds credit risk capital calculation, fully automated link; MOD-033 depends on MOD-031 for ECL stage data |
🔨 |
| IFRS9 — Model governance |
ECL model in model inventory; backtested and validated against actual losses; performance monitored |
📊 Evidenced |
CRE-006 |
MOD-031 (LOG) — ECL model in model inventory, backtested and validated against actual losses; MOD-028 (LOG) — model version logged against every decision |
🔨 |
Financial reporting
| Ref |
Obligation |
Scope |
Policy |
Platform controls |
Build |
| IFRS9 — Statutory statements |
IFRS 9 impairment disclosures included in statutory financial statements; provision movements, stage analysis, sensitivity disclosures |
🏛 Institutional |
REP-004 |
MOD-080 (AUTO) — statutory financial statements produced from Snowflake analytical layer; MOD-031 and MOD-030 provide the provision inputs; external audit and board sign-off are institutional |
🔨 |
| IFRS9 — Prudential reporting |
IFRS 9 provision figures reconciled with regulatory capital returns; no split between accounting and regulatory provisioning |
🤖 Automated |
REP-004, REP-002 |
MOD-031 (AUTO) — provision entries sourced from the same validated model as the prudential returns; MOD-036 builds regulatory returns from the same engine |
🔨 |
Hedge accounting
| Ref |
Obligation |
Scope |
Policy |
Platform controls |
Build |
| IFRS9 — Hedge documentation |
Designate qualifying hedging relationships; maintain contemporaneous documentation at inception; test effectiveness |
🏛 Institutional |
CLQ-004 |
Hedge designation and effectiveness testing are treasury / accounting policy functions; MOD-035 (CALC) — IRRBB model monitors the underlying interest rate risk |
— |
| Obligation |
Owner |
Platform evidence input |
| Accounting policy decisions on classification, measurement, and ECL methodology |
CFO / external auditors |
MOD-031 and MOD-030 provide the quantitative basis |
| External audit of IFRS 9 provisions and disclosures |
External auditors |
MOD-031 (LOG) — model validation and backtesting records; MOD-002 — immutable ledger |
| Board approval of ECL methodology and macro-economic scenarios |
Board / Audit Committee |
MOD-031 outputs feed the board impairment committee |
| Hedge designation documentation and effectiveness testing |
CFO / Treasury |
MOD-035 provides the interest rate sensitivity data |
Coverage summary
| Area |
Total obligations |
Platform automated 🤖 |
Platform evidenced 📊 |
Institutional 🏛 |
N/A |
| Classification and measurement |
2 |
1 |
0 |
1 |
0 |
| Impairment — staging |
3 |
2 |
1 |
0 |
0 |
| Impairment — ECL calculation |
5 |
4 |
1 |
0 |
0 |
| Financial reporting |
2 |
1 |
0 |
1 |
0 |
| Hedge accounting |
1 |
0 |
0 |
1 |
0 |
| Total |
13 |
8 (62%) |
2 (15%) |
3 (23%) |
0 |
All attributed modules are currently build_status: Not started — the compliance position will
update as modules are built and deployed.
| Policy |
Title |
| CRE-006 |
Impairment & Provisioning Policy |
| REP-004 |
Financial Statements Policy |
| CLQ-004 |
Interest Rate Risk in the Banking Book (IRRBB) Policy |
| REP-002 |
Prudential Reporting Policy |
See D02 Credit Risk for the full risk domain.
Official documentation
Policies referencing this standard
- CRE-006 — Impairment & Provisioning Policy
- DT-005 — Model Risk Management Policy
- DT-013 — Model Validation & Audit Policy
- REP-004 — Financial Statements Policy
Compiled 2026-05-22 from source/entities/regulations/industry-ifrs-9.yaml