FASB published a summary of the tentative decisions taken at its Board meeting in August 2018. The key topics on which tentative decisions were made include implementation of credit losses in Financial instruments and inclusion of the overnight index swap rate based on the secure overnight financing rate as a benchmark interest rate for hedge accounting purposes.
With respect to the Accounting Standards Update on Derivatives and Hedging (Topic 815), the Board has decided to make certain changes and has concluded that it has received sufficient information and analysis to make an informed decision on the issues presented and that the expected benefits of the amendments justify the expected costs. Thus, the Board directed the staff to draft a final Accounting Standards Update for vote by written ballot. Additionally, the Board decided that no amendments to Accounting Standards Update No. 2016-13, titled Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, are necessary for issues raised by stakeholders related to capitalized interest and refinancing and loan prepayments. However, the Board did decide to amend the guidance in certain other areas.
Keywords: Americas, US, Banking, Accounting, IFRS 9, Accounting Standards Update, Tentative Decisions, Derivatives and Hedging, Topic 815, Topic 326, FASB
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.