The International Accounting Standards Board (IASB) is requesting feedback as part of the post-implementation review of the classification and measurement requirements (along with the related disclosures) in the financial instruments standard IFRS 9. IASB will consider all written comments received by January 28, 2022. Later, IASB will seek feedback separately on the impairment requirements and hedge accounting requirements, when more information is available about the effects of the application of those sections.
IASB issued the completed version of IFRS 9 in 2014, combining the classification and measurement as well as the impairment and hedge accounting phases of its project to replace and improve on the IAS 39 standard on recognition and measurement of financial instruments. IFRS 9 specifies how a company is required to classify and measure financial assets and financial liabilities as well as some contracts to buy or sell non-financial items. IFRS 9 has been in effect since 2018. IASB undertakes a post-implementation review of each new IFRS standard or major amendment to a standard after companies have applied it for at least two years. These reviews offer IASB the opportunity to assess the effect of the new requirements on companies, investors, auditors, and regulators. After analyzing feedback from these reviews, IASB will decide whether to take any further actions. The actions can include providing educational materials or doing more research for possible standard-setting. At the end of this analysis, IASB will summarize and explain its responses to the feedback.
Comment Due Date: January 28, 2022
Keywords: International, Banking, IFRS 9, IAS 39, Financial Instruments, IFRS 7, Post-Implementation Review, Credit Risk, Disclosures, IASB
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.