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.
The new leasing standard, IFRS 16, will bring many more transactions on lessees’ balance sheets from 1 January 2019. Banks should start to address the impacts of the new standard now, particularly given its interaction with the two other major, forthcoming standards, IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers.
“The impact of IFRS 16 on banks will not be limited to their role as lessees. Banks acting as lessors will also need to consider the challenges that will be faced by their clients.”
Charlotte Lo, Banking Accounting Advisory, KPMG in the UK
Giorgio Vergani, Accounting Advisory Services, KPMG in Italy
We look at some of the key impacts of IFRS 16 for banks.
We look at ten large European banks reporting under IFRS to see what information they have disclosed and how their leverage ratio has changed over the last three years.
We consider how a bank’s accounting may affect the exposure measure, which is used in the calculation of the leverage ratio. The Basel Committee is currently consulting on further revisions to the detailed calculations of the leverage ratio.
The Global Public Policy Committee – which comprises representatives from BDO, Deloitte, EY, Grant Thornton, KPMG and PwC – has issued guidance on the implementation of IFRS 9’s impairment requirements for systemically important banks. There’s more on this and other developments in our regular section on IFRS 9 and the IASB’s activities.
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