BCB is consulting on the proposal for a normative act providing accounting criteria for the designation and registration of hedge accounting by financial institutions and other institutions that are authorized to operate by BCB. Comments are due by October 05, 2018.
Due to the length and complexity of the topic, the incorporation of the international standard on financial instruments was divided into stages. The first stage covered the criteria for recognition, classification and measurement of financial instruments, while the second stage addressed the provision for expected losses associated with the credit risk of financial instruments. Both were the objects of earlier public consultations (No. 54/2017 of August 2017 and No. 60/2018 of February 2018). This proposed draft resolution represents the third stage of this process and addresses the criteria for accounting for hedge transactions. After the completion of these three steps, the requirements for disclosure and presentation of financial instruments in the financial statements of publication or mandatory disclosure will be regulated.
The measures proposed are part of the efforts undertaken by BCB to promote the convergence of accounting regulation applicable to the National Financial System with the best internationally recognized best practices, in particular with IASB. This convergence consists of incorporating, into the Accounting Plan of the Institutions of the National Financial System (COSIF) of the international precepts, the IFRS 9 on financial instruments.
Related Links (in Portuguese)
Comment Due Date: October 05, 2018
Keywords: Americas, Brazil, Banking, Accounting, IFRS 9, Hedge Accounting, IASB, BCB
Previous ArticleElke König of SRB on EU Liquidation Regime and Gaps in Banking Union
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.