October 19, 2017

MAS published a feedback statement to the consultation proposing amendments to MAS Notices 612, 1005, 637, and 1111 in relation to the changes in the recognition and measurement of allowance for credit losses—introduced in International Financial Reporting Standard 9 (IFRS 9) and Singapore Financial Reporting Standard (SFRS) 109.. The consultation was published on May 12, 2017 and comments were due by June 12, 2017. The list of respondents and the feedback that respondents agreed to publish are appended to Annexes A and B, respectively.

This document summarizes comments that are of wider interest, along with MAS’ responses and policy decisions. MAS will reply to all respondents individually and publish the finalized MAS Notices 612, 1005, 637, and 1111 before the end of 2017. The policy proposals are calibrated to meet MAS’ prudential objectives in areas where the expected credit loss (ECL) model under IFRS 9 and SFRS 109 may not fully address its prudential concerns. MAS received a wide range of feedback from various stakeholders, with some respondents seeking clarification on certain policy proposals. MAS has carefully considered all feedback received, taking into account its observations on the ECL accounting model and its prudential objectives, along with the requirement for banks in Singapore to apply SFRS 109.

The Singapore Accounting Standards Council has adopted the IFRS 9 standard and issued it as SFRS 109 Financial Instruments. SFRS 109 will replace SFRS 39 Financial Instruments: Recognition and Measurement and will be effective for annual periods beginning on or after January 01, 2018. Banks in Singapore are, therefore, required to apply SFRS 109, or IFRS 9 (for locally incorporated banks that are listed on the Singapore Exchange), in the preparation of their financial statements for reporting periods beginning on or after January 01, 2018, in accordance with sections 201 or 373 of the Companies Act (Cap. 50). SFRS 109 introduces a new approach for the estimation of allowance for credit losses based on the expected credit loss (ECL) model, which includes more forward-looking information and addresses the issue of delayed recognition of credit losses on loans and other financial instruments under the incurred loss model.

 

Effective Date: January 01, 2018

Keywords: Asia Pacific, Singapore, Banking, Accounting, IFRS 9, ECL, SFRS 109, Credit Loss Provisioning, MAS

Related Articles
News

US Agencies Adopt Rule to Exclude Community Banks from Volcker Rule

US Agencies (CFTC, FDIC, FED, OCC, and SEC) adopted a final rule to exclude community banks from the Volcker Rule, in line with amendments to certain sections of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

July 22, 2019 WebPage Regulatory News
News

US Agencies Adopt Amendments to Simplify Regulatory Capital Rules

US Agencies (FDIC, FED, and OCC) adopted a final rule that reduces regulatory burden by simplifying several requirements in the regulatory capital rules for banks.

July 22, 2019 WebPage Regulatory News
News

IA of Hong Kong Delegates Inspection and Investigation Powers to HKMA

HKMA and IA of Hong Kong jointly issued a statement announcing the delegation of the inspection and investigation powers of IA to HKMA, pursuant to the statutory regulatory regime for insurance intermediaries under the Insurance Ordinance.

July 19, 2019 WebPage Regulatory News
News

FSB Extends Implementation Timeline for Policy Recommendations on SFTs

FSB announced adjustments to the implementation timelines for its recommendations on securities financing transactions (SFTs), specifically those related to the minimum haircut standards for non-centrally cleared SFTs.

July 19, 2019 WebPage Regulatory News
News

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

EBA published answers to six questions under the Single Rulebook question and answer (Q&A) tool this week.

July 19, 2019 WebPage Regulatory News
News

EBA Report Assesses Regulatory Framework for Fintech Activities

EBA published the findings of its analysis on the regulatory framework applicable to fintech firms when accessing the market.

July 18, 2019 WebPage Regulatory News
News

OSFI Revises Capital Requirements for Operational Risk for Banks

OSFI is revising its capital requirements for operational risk, in line with the final Basel III revisions published by BCBS in December 2017.

July 18, 2019 WebPage Regulatory News
News

OSFI Consults on Revised Principles for Management of Liquidity Risk

OSFI proposed revisions to Guideline B-6 on the principles for the management of liquidity risk.

July 18, 2019 WebPage Regulatory News
News

ESMA Guidance on Disclosures for Credit Rating Sustainability Issues

ESMA published the technical advice on sustainability considerations in the credit rating market, along with the final guidelines on disclosure requirements applicable to credit ratings.

July 18, 2019 WebPage Regulatory News
News

FASB Issues Q&A on Estimation of Expected Credit Losses by Firms

FASB issued a second question-and-answer (Q&A) document that addresses more than a dozen frequently asked questions related to the Accounting Standards Update No. 2016-13 titled “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”

July 17, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3482