KPMG’s ISG recently published the Q3 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 matters related to IFRS 9, Financial Instruments, including the results of a survey by the European Financial Reporting Advisory Group (EFRAG) about progress, concerns raised, and estimated costs related to implementing that standard. The issue also discusses EFRAG’s endorsement advice about using IFRS 9 in the European Union. In addition, the issue considers some of the common accounting challenges and questions raised about negative interest rates, including the effect on income statement presentation, derecognition of financial assets, hedge accounting, and reporting cash equivalents. Finally, the issue explores the IFRS reporting effect of client clearing arrangements for over-the-counter derivatives on the balance sheets of clearing member banks.