The Bank Statement – Q1 2015

The Bank Statement – Q1 2015

This newsletter looks at IFRS and regulatory matters affecting accounting for banks.

London's 'Gherkin' building reflected in a pane of glass

The Bank Statement is KPMG’s quarterly banking newsletter.It provides updates on IFRS developments that directly impact banks, and considers the potential accounting implications of regulatory requirements. Download Issue 17 to read about the developments in Q1 2015. Previous issues can be found on our IFRS Newsletters web page. And visit our IFRS for Banks and IFRS – Financial instruments hot topics pages for more on these and other related developments.

Tackling the IFRS 9 impairment model

There’s much discussion over how to implement the new impairment model, so this quarter’s banking newsletter looks at some of the latest developments. 

The Basel Committee on Banking Supervision has issued guidance on the way internationally active banks should implement the new requirements. Will these proposals contribute to a consistent interpretation of IFRS 9?


“The goal of consistent interpretation of the impairment requirements of IFRS 9 across different entities would benefit from stakeholders working together.”


Our comment letter on the Basel Committee's proposals is also now available.

Spotlight on IFRS 9

We also introduce a new section this quarter to bring you the latest IFRS 9 news each quarter. Highlights this quarter include:

  • Basel Committee guidance on accounting for expected credit losses;
  • the April 2015 Impairment Transition Group meeting (find out more in our IFRS Newsletter: IFRS 9 Impairment)
  • an FSB roundtable; and
  • the new Volume 3 of our Insights into IFRS.

Funding valuation adjustments

Although discussions on funding valuation adjustments (FVAs) continue, many banks with material derivative holdings have decided to incorporate the FVA into derivative prices for the purposes of their financial reporting. 

We look at disclosures made in this area in 10 banks’ 2014 financial statements.

Leverage ratio – Are banks ready?

In response to the global financial crisis, the Basel Committee introduced the leverage ratio, which limits the size of a bank’s exposures in line with the amount of its capital on a non-risk-weighted basis. 

This article explores how some elements of the regulatory guidance interact with the IFRS accounting requirements, with examples.

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