KPMG’s ISG recently published the Q2 2015 issue of The Bank Statement to update readers about IFRS developments and accounting issues that affect the banking sector, and to discuss the potential implications of regulatory developments. The issue highlights implementation projects related to IFRS 9, Financial Instruments, and reports that the European Financial Reporting Advisory Group recently issued for comment draft endorsement advice about using IFRS 9, in which it preliminarily concluded that IFRS 9 satisfied the criteria for endorsement for use in the EU. The issue also cautions banks not to underestimate the effects of changes arising from IFRS 9, e.g., complexities of performing the analysis of solely payment of principal and interest. Additionally, the issue discusses how the leverage ratio is encouraging banks to consider the size of their balance sheet, including the complexities involved in accounting for client funds. Finally, the issue summarizes the Basel Committee on Banking Supervision’s recent standard about net stable funding ratio disclosures, and the IASB’s projects about macro hedging and the distinction between liabilities and equity.