IASB : impairment requirement will result in fundamental change

Speaking today at a conference in London, Hans Hoogervorst, Chairman of the International Accounting Standards Board (IASB), said the forward-looking expected loss model in the new financial instruments Standard should provide investors with better insight on loan loss risks.

The conference is the third annual event for financial services institutions organised jointly by the IFRS Foundation and ICAEW. This year’s event is focussed specifically on the practical implementation of the impairment element of the financial instruments Standard, IFRS 9. The Standard was finalised in 2014 and becomes effective in 2018.

The new Standard requires banks to recognise 12 months’ expected losses on loans that perform as anticipated and full lifetime losses on loans that have experienced a significant increase in credit risk.

Read the full press release and access the speech here.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s