The Bank Statement – Q1 2016

The Bank Statement – Q1 2016

This newsletter looks at IFRS and regulatory matters affecting accounting for banks.

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The Bank Statement is KPMG’s IFRS newsletter for the banking sector, updated each quarter

The Bank Statement is KPMG’s quarterly banking newsletter.

It provides updates on IFRS developments that directly impact banks, and considers the potential accounting implications of regulatory requirements.

Download Issue 21 to read about the developments in Q1 2016. Previous issues can be found on our IFRS Newsletters web page.

And visit our IFRS for Banks and IFRS – Financial instruments hot topics pages for more on these and other related developments.

The headaches of impairment

With less than two years until IFRS 9 Financial Instruments becomes effective, most banks are engaged in the heavy lifting phase of their implementation projects: replacing their ‘old-style’ impairment models based on the measurement of incurred losses with new ones able to measure expected credit losses.

Estimating expected credit losses requires a view on possible future economic conditions and how these conditions will impact credit quality.

 

“ITG discussions raised expectations about model sophistication a number of notches.”

Jonathan Bingham, Financial Services, KPMG in the UK

 

We look at some of the emerging practices in this complex area.

Disclosing the impacts of IFRS 9

We look at the 2015 accounts of eight major European banks reporting under IFRS to see what information they have disclosed about the likely impact of IFRS 9.

Client clearing for OTC derivatives

When a clearing member of LCH.Clearnet elects to convert a collateral-to-market contract into a settled-to-market contract, it may need to consider accounting implications.

We discuss some of the latest developments in a fast-moving area that may need input from operations and legal specialists as well as accountants.

IFRS 9 developments and IASB projects

The EU’s endorsement of IFRS 9 is now expected in H2 2016. There’s more
news on this and other developments in our regular sections on IFRS 9 and the IASB’s activities.

© 2016 KPMG IFRG Limited is a UK company, limited by guarantee. All rights reserved. KPMG IFRG Limited, registered in England No 5253019. Registered office: 15 Canada Square, London, E14 5GL, UK.

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