• Service: Audit, IFRS
  • Date: 4/4/2014

Banking – Challenges ahead in accounting for funding valuation adjustments 

Market practice for pricing derivatives is evolving. Having accepted the overnight index swap rate as the new normal for discounting collateralised derivatives, the market has shifted its attention to uncollateralised positions – and this newsletter highlights some of the key points to consider when including funding value adjustments in fair value.

Meanwhile, the IASB has tentatively decided that IFRS 9 Financial Instruments will be effective for annual periods beginning on or after 1 January 2018. It expects to issue the remaining chapters of IFRS 9 in mid-2014.

How does your bank compare? We have a new benchmarking section in which we look at how banks have categorised loans measured at amortised cost for the purposes of disclosure of the fair value hierarchy under IFRS 13 Fair Value Measurement.

Our IFRS Newsletter: The Bank Statement discusses these topics in more detail. Please feel free to contact me if you wish to discuss this or any of your needs further.

IFRS Newsletter: Banking - issue 13, Q1 2014

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

© 2015 KPMG IFRG Limited is a UK company, limited by guarantee. All rights reserved. KPMG IFRG Limited, registered in England No 5253019. Registered office: 8 Salisbury Square, London, EC4Y 8BB


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