• Service: Audit, IFRS
  • Date: 7/5/2013

Some welcome reliefs for banks, but implementation challenges ahead 

The banking industry has recently had some welcome news in the area of hedge accounting – the IASB’s provision of a limited-scope relief for a widespread issue resulting from derivative novations, and the decision to allow an accounting policy choice over which general hedging model to use once IFRS 9 Financial Instruments becomes effective.

However, with only months left before issuing their first financial statements under IFRS 13 Fair Value Measurement, banks face a number of implementation challenges. The magnitude of these challenges will be largely dependent on a bank’s existing approach under IAS 39/IFRS 9, as well as the nature of the business and of the financial instruments held. It will be important for banks to monitor evolving practice in complicated areas and areas with only limited guidance.

Meanwhile, identifying crossovers and synergies between the IASB’s proposals on expected credit losses and the credit risk parameters in the Basel capital framework is high on the agenda for many banks.

Our IFRS Newsletter: The Bank Statement discusses these topics in detail.

IFRS Newsletter: Banking - issue 10, Q2 2013

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The banking newsletter provides updates on IFRS developments that directly impact banks.

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