Have you ever wondered what it would be like to walk down the ‘Yellow Brick Road’? Read this article to find out more about the six key challenge areas and how to best deal with them in the lead-up to go-live in 2018.
Over the past few years we have seen that IFRS 9 programmes have been through many changes, in terms of priorities as well as in terms of ownership and governance. The programme has been through its ups and downs, each phase having its own specific hurdles to overcome. This dynamic flow of the programme is depicted by a yellow-dotted line we call the Yellow Brick Road, a metaphoric reference to the story of The Wizard of Oz.
First time reporting under IFRS 9 is less than a year away. Sooner still, the parallel run will be the next moment to determine how stable, accurate and efficient the IFRS 9 figures and disclosures can be produced. It will be the first true test of the outcomes and the supporting accounting and reporting processes. We expect that a lot of ‘hidden’ issues will arise and these will add-up to a significant amount of work that will still need to be done before go-live in 2018. We have grouped these issues into the following six key challenge areas:
Although, in this article, we focus primarily on (large) banks, this article is also relevant to other Financial Institutions (e.g. insurance companies or smaller banks).