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

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.