Financial instruments is one of the least converged areas. IFRS unified classification and impairment in IFRS 9; US GAAP keeps a category-based model (ASC 320/321/325) and a separate impairment standard (ASC 326, CECL).
| Area | US GAAP (ASC 320/321) | IFRS 9 |
|---|---|---|
| Driver | Category / intent (held-to-maturity, available-for-sale, trading) | Business model + SPPI test → amortized cost / FVOCI / FVTPL |
| Equity investments | Generally FV through net income (ASC 321) | FVTPL, or an irrevocable FVOCI election (no recycling) |
| Reclassification | Limited | On a change in business model |
| Area | US GAAP (ASC 326, CECL) | IFRS 9 |
|---|---|---|
| Day-one loss | Lifetime expected credit losses at initial recognition | 12-month ECL first |
| Staging | Single pooled estimate | Three stages — move to lifetime ECL after a significant increase in credit risk (SICR) |
| Stage-3 interest | — | Interest on net (of allowance) carrying amount |
CECL recognizes a larger loss earlier and uniformly; IFRS 9 ramps via staging. Both are a major change from the old incurred-loss model.
An educational reference and original synthesis — not investment advice, and not a substitute for the standard or for professional accounting guidance. For authoritative measurement detail, consult IFRS 9 / ASC 320 / ASC 321 / ASC 326 directly.