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.