United States

Q1 2016 Issue of The Bank Statement

May 16, 2016
From the Financial Reporting View and the IFRS Institute

KPMG’s ISG recently published the Q1 2016 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 IFRS 9, Financial Instruments, including (1) the EU’s postponed endorsement of the standard, (2) the launch of the European Banking authorities’ assessment of the effect of IFRS 9 on a sample of approximately 50 EU financial institutions, (3) a discussion of the effect of the standard on insurers in view of the forthcoming insurance contracts standard, (4) a discussion of the emerging practice issues for banks engaged in implementation projects to upgrade their impairment models to measure expected credit losses, and (5) an analysis of disclosures to date by eight major European banks about the possible effect of the standard when applied. The issue also discusses other IASB activities that will affect banks’ financial reporting, including measuring investments in subsidiaries, JVs, and associates at fair value; accounting for financial instruments with characteristics of equity; and classification of an issuer’s liability for a prepaid card. Finally, the issue updates readers about recent developments related to client clearing for over-the-counter derivatives.

Read KPMG ISG’s Newsletter – The Bank Statement