IFRS 9 requires that financial assets are classified on the basis of the business model within which they are held and their contractual cash flow characteristics. It is therefore imperative that the Boards of banks and FLCs clearly articulate their business models and document them adequately. Further, senior management should ensure that operations are carried out as per Board approved business models and there is supporting evidence to demonstrate the same. Deviations from the business model and changes in the business model should be done in exceptional circumstances, in accordance with the requirements of IFRS 9. The nature, justification and impact of such deviations or changes should be recorded and approved at the Board level. Where material, such deviations should also be disclosed in the notes to the financial statements.