Global Accounting Firms Release Joint White Paper to Assist Audit Committees in Implementing IFRS 9, Financial Instruments
The Global Public Policy Committee (GPPC) – which comprises representatives from BDO, Deloitte, EY, Grant Thornton, KPMG, and PwC – recently published a joint white paper to help audit committees meet their responsibilities in implementing the impairment requirements of IFRS 9, Financial Instruments. The aim of the paper is to promote a high quality implementation of accounting for expected credit losses and to help those charged with governance to evaluate management’s progress during the implementation and transition phases. The paper recommends actions related to governance and controls, identifies factors affecting selection of modelling approaches, and poses 10 key questions for audit committees to discuss with management.
While the paper does not address FASB ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, a number of the concepts addressed in the paper are relevant to implementing that ASU.