The Bank Statement – Q2 2016

The Bank Statement – Q2 2016

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

Related content

Illuminated window on a modern building

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 22 to read about the developments in Q2 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.

How banks may be affected by IFRS 16

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.

Trends for the leverage ratio

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.

Basel III leverage ratio – one year on

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.

IFRS 9 developments and IASB projects

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.

© 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.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform