Accounting Change for Banks 

Changing the way global banks report.
Accounting change for banks

Keeping pace with evolving accounting change is challenging for banks. The new accounting standard for financial instrument (IFRS 9: Financial Instruments) is being finalised and will result in a comprehensive change to way banks account for many transactions. The standard is likely to be complex and the magnitude of the changes that it is likely to bring should not be underestimated. Some aspects, such as the move to the expected loss model, are likely to be particularly operationally challenging. New judgments that may be critical to reported profits will have to be made and communicated to the stakeholders. Banks would likely feel the consequences throughout their organisations. If banks start planning now, the wave of change could open up opportunities for synergies in areas such as data collection, modeling capability and investment in systems and resources

The expected changes to accounting for financial instruments are not the only source of an impact of accounting changes for a bank. Other standards, for example those providing guidance on lease, insurance contracts and revenue are also subject to a comprehensive revision. Access our latest research and newsletters below to understand more.

 IFRS banking newsletters

The Bank Statement is KPMG’s IFRS Banking Newsletter produced by the International Standards Group and IFRS banking specialists around the KPMG network. It is a quarterly publication that provides updates on IFRS developments directly impacting banks, considers accounting issues affecting the sector, and discusses potential accounting implications of regulatory developments.

 IFRS banking insights

Illustrative disclosures for banks

Guide to annual financial statements - Illustrative disclosures for banks (PDF 12.7 MB)

This publication, together with the disclosure checklist in our Guide to financial statements suite, sets out and illustrates many of the potential disclosure requirements for banks under IFRS.
Funding valuation adjustment

Funding valuation adjustment in the valuation of derivatives

This paper looks at funding valuation adjustments and some practical implications around putting funding costs in the management of a bank’s derivatives business.
Hedge accounting and transition

First Impressions: IFRS 9 (2013) – Hedge accounting and transition

This edition of First Impressions considers the requirements of IFRS 9 Financial Instruments (2013), including the new general hedging model.
Leases for Banks

New on the Horizon: Leases for Banks

This publication looks at the potential impact of the revised proposals on banks and highlights the issues relevant to banks.
Financial instruments

New on the Horizon: Financial instruments - Expected credit losses

The IASB's revised proposals are a step change in accounting for impairment, with big impacts likely for banks and similar financial institutions.
Loan acquisition accounting

IFRS Practice Issues for Banks: Loan acquisition accounting

This first edition of IFRS Practice Issues for Banks provides guidance and examples on the accounting for acquired loans.

Share this

Share this

Colin Martin

Colin Martin

Partner, Assurance Services – Banking

+44 20 73115184