We are pleased to issue our latest IFRS Banking newsletter - The Bank Statement. Developed by the International Standards Group and IFRS banking professionals around the KPMG network, this quarterly newsletter brings together current IFRS issues facing banks.
PDF files require Adobe Reader to view
- The 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. In the meantime, the FASB issued their exposure draft on the expected loss impairment model. Now is the time for Canadian financial institutions to actively engage in the analysis of implications and provide feedback to the Boards.
- Extensive and sometime overlapping disclosures may contribute to a perception that financial reporting is a compliance exercise rather than a means of channeling key messages to stakeholders. The EDTF recommendations on enhancing risk disclosures may help banks to improve investor confidence. Canadian financial institutions will be engaged in considering these and also what their peers around the world might be reporting.
- 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.