KPMG’s ISG recently published the Q2 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 16, Leases, which fundamentally changes lease accounting and will bring many more transactions onto lessees’ balance sheets. Banks and financial institutions will be affected in their roles as lessees and lessors, and should start to address the effects of the new standard now in view of its interaction with the two other major standards, IFRS 9, Financial Instruments, and IFRS 15, Revenue from Contracts with Customers. The issue looks at the effects of the new leasing standard for banks, including key accounting changes and relevant application issues.
The issue also discusses the leverage ratio, including the firm’s survey of disclosure trends based on a sample of 10 large European banks, and addresses how a bank’s accounting affects the exposure measure, which is inversely correlated with the leverage ratio. Finally, the issue updates readers about recent developments related to IFRS 9, and about the IASB’s activities.