This newsletter looks at IFRS and regulatory matters affecting accounting by banks
It provides updates on IFRS developments that directly impact banks, and considers the potential accounting implications of regulatory requirements.
The new credit loss frameworks under IFRS and US GAAP are conceptually similar, in that they are both ‘expected’ and forward-looking, as opposed to the ‘incurred’ loss frameworks applicable today. However, there are significant differences that dual reporters need to consider carefully when designing their accounting and governance solutions.
“Global banks with reporting obligations under both IFRS and US GAAP face the challenge of implementing two expected credit loss frameworks.”
Reza van Roosmalen and Brandon Isaacs, KPMG Accounting
Advisory Services in the US
This newsletter explores some issues to consider in deciding whether to centralise implementation efforts for the two frameworks.
In anticipation of the effective date of IFRS 9 Financial Instruments of 1 January 2018 and the new presentation requirements introduced by the standard, we look at how banks currently present interest on financial instruments at fair value through profit or loss in profit or loss.
There’s more news in our regular sections on IFRS 9 and the IASB’s activities, including IFRS Interpretations Committee discussions on the modification or exchange of financial liabilities that do not result in derecognition under IFRS 9.