This newsletter looks at IFRS and regulatory matters affecting accounting for banks.
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.
Implementing the classification and measurement requirements of IFRS 9 brings with it its own complexities, but also defines the scope of the impairment part of the project.
In our experience, many banks have underestimated the effort needed to perform the analysis of whether contractual cash flows from financial assets represent solely payments of principal and interest on the principal amount outstanding.
“Many banks started their IFRS 9 implementation projects by focusing on specific accounting issues known to be challenging, and did not focus sufficiently on the broader impact of adopting the standard.”
Gerd Straub and Gudrun Hartig, KPMG in Germany
This quarter’s newsletter looks at some of the practical issues arising in the field.
Disclosures required under Pillar 3 of the Basel Framework cover much common ground with the requirements of IFRS 7 Financial Instruments: Disclosures.
With the implementation of IFRS 9 and the revised requirements under Pillar 3, both sets of rules are changing. We discuss the issues and likely next steps.
Also in this issue, we report on: