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
The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.
The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.
The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.