IFRS 9 and Electronic Payments: Getting the Cut-off Right

Electronic payments can cross a reporting date even when a payment instruction has already been approved and submitted. The accounting treatment depends on when the financial asset or liability qualifies for derecognition, rather than simply when an entry appears in the payments system.

This webinar examines the IFRS 9 amendments effective for annual reporting periods beginning on or after 1 January 2026, focusing on financial payments awaiting settlement. Participants will explore the settlement date principle and the optional exception for financial liabilities settled through electronic payment systems. The session explains the three conditions relating to cancellation, access to cash and settlement risk, together with the evidence required to support accounting conclusions.

The webinar distinguishes outgoing payments from incoming receipts and explains why the early derecognition exception for financial liabilities cannot automatically be applied to receivables. Practical examples involving payment batches, weekends, bank processing deadlines and rejected transfers will illustrate common financial reporting and cut-off risks.

Accountants and auditors will also examine how to document accounting policy elections for individual payment systems, apply them consistently, reconcile cash and payable balances, and review transactions around reporting dates. The session addresses transition requirements and practical internal controls, helping participants connect technical accounting guidance with payment records, bank evidence and defensible financial reporting conclusions.

Key Topics Discussed:

• Overview of IFRS 9 amendments relating to financial assets and liabilities settled through electronic payment systems

• Understanding the settlement date principle and its application to financial transactions

• Optional early derecognition exception for financial liabilities settled through electronic payment systems

• Examining the three eligibility conditions: cancellation, access to cash and settlement risk

• Distinguishing the accounting treatment of outgoing payments and incoming receipts

• Understanding why early derecognition exceptions for financial liabilities do not automatically apply to receivables

• Assessing payment timing and reporting cut-off risks around weekends, bank processing deadlines and rejected transfers

• Evaluating supporting evidence from payment systems and banks

• Documenting and consistently applying accounting policy elections for individual payment systems

• Reconciling cash and payable balances around reporting dates

• Reviewing transactions awaiting settlement and identifying potential financial reporting errors

• Understanding transition requirements and implementation considerations

• Strengthening internal controls over electronic payments and financial reporting procedures