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Katrien Schotte
Finance A&R - Policies
9 June 2015
Missed opportunities ?
Potential impacts
Departement |
10/06/2015
IFRS 9 Impairment
Fundamental redesign moving from an
incurred loss model to an expected loss
model
Departement |
10/06/2015
IFRS 9 Impairment
The Basel Committee on Banking Supervision (BCBS) Guidance on Accounting for
expected credit losses
Potential impacts
Departement |
10/06/2015
Relaxation of effectiveness testing requirements in particular elimination of the bright line test
of 80-125% to demonstrate hedge effectiveness
Rebalancing instead of discontinuation and re-designation
Extension of scope of hedged items:
Aggregated exposures including derivatives eligible as hedged item
Expansion of fair value hedge of net positions / layers of hedged items
Hedging instruments: less volatile profit or loss because of the exclusion of time value of
options and forward points
Hedge accounting remains an option, but voluntary de-designation will be prohibited if risk
management remains unchanged
Changes work out well for corporates and less for banks
The absence of new guidance for macro hedges, even though mitigated by accounting policy
choice to continue with IAS 39 for portfolio hedges of interest rate risk
Extensive new disclosure requirements to ensure comparability
Potential impact
Departement |
10/06/2015
IFRS 9 Implementation
Implementation is challenging
Strong co-ordination needed between Finance and Risk to ensure credit data quality
Interaction with BCBS #239 on risk data aggregation and risk reporting
Departement |
10/06/2015
Disappearance of held-to-maturity
Hedge accounting
Estimated impact ?
Banks have been waiting for the final standard to start the implementation
Dependent on economic conditions at date of first-time adoption
10/06/2015