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. IASB will divide the post-implementation review of IFRS 9 into phases with the classification and measurement requirements of IFRS 9 being in the first phase, which involves an initial identification and assessment of the matters to be examined. IASB decided to begin the review in October 2020.
When developing IFRS 9, IASB divided its project into three phases—classification and measurement, impairment, and hedge accounting. At the October 2020 meeting, IASB decided to also divide the post-implementation review of the standard into phases, starting with the review of the classification and measurement requirements. In the first stage, IASB developed a single principle-based approach to the classification and measurement of financial assets. IASB also addressed the so-called "own credit" issue by requiring that the effects of changes in the credit risk of financial liabilities designated under the fair value option are presented in other comprehensive income. The impairment requirements and hedge accounting requirements will be reviewed later, when more information is available about the application and effects of those requirements.
IASB is required to conduct a Post-implementation Review of each new IFRS Standard or major amendment. This review is an opportunity to assess the effects of a new standard or major amendment to a standard on investors, preparers, and auditors, following its issuance and application.
Keywords: International, Banking, IFRS 9, Post Implementation Review, Financial Instruments, IASB
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.