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
BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.
BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.
APRA published the updated reporting standards and guidance for the collection of Economic and Financial Statistics (EFS), following a consultation process. Also published was a response letter to the feedback received on the proposal for amending the EFS reporting standards and guidance.
EC is consulting on a draft delegated regulation to supplement the Taxonomy Regulation (2020/852) by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as environmentally sustainable.
The IFRS Foundation published material highlighting the ways in which existing requirements in IFRS standards require companies to consider climate-related matters when their effect is material to the financial statements.
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.