Welcome to the Q4 2013 issue of our quarterly banking newsletter in which we provide updates on IFRS developments that directly impact banks and consider the potential accounting implications of regulatory requirements.
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- The IASB issued a new general hedge accounting model – part of IFRS 9 Financial Instruments (2013) – which will align hedge accounting more closely with risk management.
- The mandatory effective date for the application of IFRS 9 Financial Instruments will be no earlier than annual periods beginning on or after 1 January 2017.
- Deliberations continue on some of the key aspects of the IASB’s proposals for expected credit losses and classification and measurement to form part of the future financial instruments standard.
- Non-EU banks have already applied IFRS 10 Consolidated Financial Statements, which is effective for annual periods beginning on or after 1 January 2013. We discuss some of the learning points from the first year of implementation.
- The European Central Bank is to perform an asset quality review of the eurozone’s most significant 130 banks. We consider some possible accounting implications.