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