This newsletter looks at IFRS and regulatory matters affecting accounting by 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.
Portfolio valuation adjustments for derivative portfolios have become increasingly sophisticated over recent years. One of the newest and potentially largest adjustments is for the cost of regulatory capital – so-called KVA.
“The ultimate test of a KVA is whether it genuinely reflects the price at which a willing counterparty would enter into a transaction.”
Colin Martin, KPMG in the UK
We delve deeper into the detail of KVA and why it is more complex than it seems at first glance.
The Basel Committee on Banking Supervision recently published proposals on the interaction between IFRS 9 Financial Instruments and the Basel regulatory capital requirements for banks.
This article discusses the proposals and their possible implications.
This quarter, our regular ‘How do you compare?’ article looks at disclosures of fair value for financial instruments that are measured at amortised cost.
There’s more news in our regular sections on IFRS 9 and the IASB’s activities, including confirmation of the EU’s endorsement of IFRS 9.
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