January 11, 2018

PRA published a letter sent to the CFOs of selected firms on transition disclosures for the IFRS 9 standard on Financial Instruments. Victoria Saporta, Executive Director of Prudential Policy, wrote this letter, in which she summarized letters written by Sam Woods on the PRA expectations about the implementation of the IFRS 9 expected credit loss accounting (ECL) requirements. The letter is intended to set out the PRA expectations on the minimum transition disclosures about ECL.

The transition disclosures aim to help market participants understand how ECL works, what its implications are, and what the implications are of the choices the firm has made in implementing ECL. This letter is addressed to the larger UK-headquartered credit institutions. The expectations it sets out are likely to be relevant to other credit institutions, particularly those that manage their investor-base actively but, as PRA has not discussed transition disclosure with those firms, it is not addressing the expectations to them.

PRA expects a firm to use its best endeavors to publish all the minimum transition disclosures in or by the later of the date on which any separate transition disclosure pack is published and the date on which the Quarter 1 statement is published. If one or more of the disclosures are not published by the later of those two dates, PRA regards it as very important that the omitted information be disclosed as soon as practicable thereafter and in any event no later than the 2018 (or 2018–2019) annual report and accounts.


Related Link: PRA Letter (PDF)

Keywords: Europe, UK, Banking, Accounting, IFRS 9, Transition Disclosures, ECL, PRA

Related Articles
News

US Agencies Consult on Capital Treatment of Land Development Loans

US Agencies (FDIC, FED, and OCC) issued a proposed rule on the treatment of loans that finance the development of land for purposes of the one- to four-family residential properties exclusion in the definition of high volatility commercial real estate (HVCRE) exposure in the regulatory capital rule.

July 12, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Second Update for July 2019

Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published answers to five questions related to supervisory reporting.

July 12, 2019 WebPage Regulatory News
News

ESMA Updates Manual for European Single Electronic Format in EU

ESMA updated the reporting manual for European Single Electronic Format (ESEF).

July 12, 2019 WebPage Regulatory News
News

FED Updates Supplemental Instructions for Reporting Form FR Y-9C

FED updated the supplemental instructions for FR Y-9C reporting.

July 12, 2019 WebPage Regulatory News
News

EBA Publishes Report on Monitoring Implementation of LCR in EU

EBA published its first report on the monitoring of the implementation of liquidity coverage ratio (LCR) in EU.

July 12, 2019 WebPage Regulatory News
News

EIOPA Consults on Reporting and Disclosures Under Solvency II Review

EIOPA launched a consultation package on supervisory reporting and public disclosure in the context of its work linked with the 2020 Solvency II review.

July 12, 2019 WebPage Regulatory News
News

APRA Applies Additional Capital Requirements to Three Australian Banks

APRA is applying additional capital requirements to three major banks in Australia to reflect higher operational risk identified in their risk governance self-assessments.

July 11, 2019 WebPage Regulatory News
News

IMF Report on 2019 Article IV Consultation on Euro Area Policies

IMF published its staff report in context of the 2019 Article IV consultation on euro area policies with member countries.

July 11, 2019 WebPage Regulatory News
News

FSB to Survey Practices on Cyber Incident Response and Recovery

FSB launched a survey on the industry practices on cyber incident response and recovery.

July 11, 2019 WebPage Regulatory News
News

ECB Appoints New Members of Supervisory Board

The Governing Council of ECB appointed Edouard Fernandez-Bollo, Kerstin af Jochnick, and Elizabeth McCaul as representatives to the Supervisory Board of ECB Banking Supervision, for a five-year non-renewable term.

July 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3441