Talking Trade Finance

New ITFA Guide to IFRS 9 for the Trade Receivables and Supply Chain Finance Industry

Posted by Simon Cook on Jun 3, 2019 3:44:43 PM

ITFA has published "A guide to accounting and legal issues under IFRS 9 for the trade receivables and supply chain finance industry."

These are ITFA's first set of guidelines on the standards aimed solely at the trade and supply chain finance industry, since the International Accounting Standards Board (IASB) issued IFRS 9, which came into force on January 1, 2018.

The Guide looks at the following credit risk mitigation products and techniques:

  • Non-payment insurance
  • Unfunded sub-participations
  • Funded sub-participations with transfer of an ownership interest
  • Funded sub-participations without such a transfer
  • Novation and assignment, in the context of IFRS 9 and how to treat assets in the books of a financial institution

The publication is the latest in ITFA's range of publications focused on issues in trade finance.

The Sullivan team advising ITFA in relation to the drafting and publication of the guide was led by trade & export finance partner Geoffrey Wynne with managing associate Hannah Fearn in London.

Further information is available here.

Topics: ITFA, IFRS 9, Supply chain finance

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Talking Trade Finance is here to provide you with all of the latest updates in the Trade & Export Finance Industry.

The material on this site is for general information only and is not legal advice. No liability is accepted for any loss or damage which may result from reliance on it. Always consult a qualified lawyer about a specific legal problem.

Meet the Editor


Simon Cook is a partner in the Trade & Export Finance Group in Sullivan’s London office. He has experience in a wide variety of banking and finance transactions, including structured trade and commodity finance, project finance, warehouse finance, supply chain finance, ECA finance and borrowing-base facilities. He advises on transactions across emerging markets for both lenders and borrowers notably in the oil, telecoms, soft commodities and metals sectors in Africa and the Middle East, where he was based for four years. Simon also acts for industry bodies and is a member of ITFA’s Africa Regional Committee.


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