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- IFRS 9 introduces new impairment rules in order to respond to G20’s complaint about the complexity and the lack of efficiency of the IAS 39 standard. The main issue was a delayed recognition of credit losses on loans and other financial instruments. This new Standard is mandatory from January 1th 2018. This thesis reviews the implementation of this new regulatory requirement and the way in which institutions are preparing for the application of the new Standard. We will start with an overview of the IFRS 9 standard by explaining the latter and what are the key steps in its implementation. We will then put into practice the various theoretical points in a case study. More precisely, we will apply the calculation of the expected credit loss, which is the main topic of this new requirement, in its entirety by basing our calculations on a concrete example namely, a private bank in Luxembourg. We will conclude this thesis by citing the impacts that this new regulation will have on entities by basing our calculation on three different banks. The case study will show that the implementation of the new IFRS 9 impairment requirements is rising the credit loss allowances of many banks and financial institutions. However, this growth will vary by entity, depending on its portfolio. The case study also demonstrates that the IFRS 9 loan loss allowances increase timely with the raise of the probabilities of default when the credit standing deteriorates. Finally, the impact assessment will show that the impact can be less significant than predicted by the European Banking Authority (EBA).