Highlights in this edition include:
- The International Accounting Standards Board (IASB) decided on the final features of the impairment model to be re-exposed in early 2013. The criteria for the recognition of lifetime expected losses have been simplified to alleviate operational burden.
- Extensive and sometimes overlapping disclosures may contribute to a perception that financial reporting is a compliance exercise rather than a means of channelling key messages to stakeholders. The Enhanced Disclosure Task Force (EDTF) recommendations on enhancing risk disclosures may help banks to improve investor confidence.
- The introduction of Basel 3 leverage ratio may in certain cases result in disposals of financial assets. We consider potential accounting implications of the new regulatory requirements on the classification of financial assets.
To view the full The Bank Statement issue, download the PDF of the newsletter.