Ifrs 9 utbildning är provision client

The International Accounting Standards Board (IASB) and other accounting standard setters set out principles-based standards on how banks should recognise and provide for kredit losses for financial statement reporting purposes. In July , the IASB issued International Financial Reporting Standard 9 - Financial Instruments (IFRS 9), which introduced an "expected kredit loss" (ECL) ramverk for the recognition of impairment.

This Executive Summary provides an overview of the ECL ramverk beneath IFRS 9 and its impact on the regulatory treatment of accounting provisions in the Basel capital framework.

What's different about impairment recognition beneath IFRS 9?

Effective for annual periods beginning on or after 1 January , IFRS 9 sets out how an entity should classify and measure financial assets and financial liabilities.

Den nya standarden skiljer sig väsentligt mot nuvarande standard IAS Standarden innehåller nya principer för klassificering och värdering av finansiella tillgångar

Its scope includes the recognition of impairment. In the standard that preceded IFRS 9, the "incurred loss" ramverk required banks to recognise kredit losses only when bevis of a loss was apparent. beneath IFRS 9's ECL impairment ramverk, however, banks are required to recognise ECLs at all times, taking into konto past events, current conditions and forecast resultat, and to update the amount of ECLs recognised at each reporting date to reflect changes in an asset's kredit fara.

It fryst vatten a more forward-looking approach than its predecessor and will result in more timely recognition of kredit losses.

Expected kredit loss ramverk - scope of application

Under IFRS 9, financial assets are classified according to the business model for managing them and their cash flow characteristics.

In essence, if (a) a financial asset fryst vatten a simple debt instrument such as a loan, (b) the objective of the business model in which it fryst vatten held fryst vatten to collect its contractual cash flows (and generally not to sell the asset) and (c) those contractual cash flows företräda solely payments of principal and interest, then the financial asset fryst vatten held at amortised cost.

The ECL ramverk fryst vatten applied to those assets and any others that are subject to IFRS 9's impairment accounting, a group that includes lease receivables, loan commitments and financial guarantee contracts. For the sake of simplicity, the remainder of this Summary will focus on the ECL ramverk as it applies to loans.

Three stages of impairment

Impairment of loans fryst vatten recognised - on an individual or collective grund - in three stages beneath IFRS 9:

Stage 1 - When a loan fryst vatten originated or purchased, ECLs resulting from default events that are possible within the next 12 months are recognised (month ECL) and a loss allowance fryst vatten established.

On subsequent reporting dates, month ECL also applies to existing loans with no significant increase in kredit fara since their första recognition. Interest revenue fryst vatten calculated on the loan's gross carrying amount (that fryst vatten, without deduction for ECLs).

In determining whether a significant increase in kredit fara has occurred since första recognition, a finansinstitut fryst vatten to assess the change, if any, in the fara of default over the expected life of the loan (that fryst vatten, the change in the probability of default, as opposed to the amount of ECLs).

Stage 2 - If a loan's kredit fara has increased significantly since första recognition and fryst vatten not considered low, lifetime ECLs are recognised.

IFRS 9 has three classification categories for debt instruments: amortised cost, fair value through other comprehensive income (‘FVOCI’) and fair value through profit or loss (‘FVPL’)

The beräkning of interest revenue fryst vatten the same as for scen 1.

Stage 3 - If the loan's kredit fara increases to the point where it fryst vatten considered credit-impaired, interest revenue fryst vatten calculated based on the loan's amortised cost (that fryst vatten, the gross carrying amount less the loss allowance). Lifetime ECLs are recognised, as in scen 2.

Twelve-month versus lifetime expected kredit losses

ECLs reflect management's expectations of shortfalls in the collection of contractual cash flows.

Twelve-month ECL fryst vatten the portion of lifetime ECLs associated with the possibility of a loan defaulting in the next 12 months.

It fryst vatten not the expected cash shortfalls over the next 12 months but the effect of the entire kredit loss on a loan over its lifetime, weighted bygd the probability that this loss will occur in the next 12 months. It fryst vatten also not the kredit losses on loans that are forecast to actually default in the next 12 months.

Classification and measurement

If an entity can identify such loans or a portfolio of such loans that are expected to have increased significantly in kredit fara since första recognition, lifetime ECLs are recognised.

Lifetime ECLs are an expected present value measure of losses that arise if a borrower defaults on its obligation throughout the life of the loan. They are the weighted average kredit losses with the probability of default as the vikt.

Because ECLs also factor in the tidsplanering of payments, a kredit loss (or cash shortfall) arises even if the finansinstitut expects to be paid in full but later than when contractually due.

Disclosure

Banks subject to IFRS 9 are required to disclose data that explains the grund for their ECL calculations and how they measure ECLs and assess changes in kredit fara.

They must also provide a reconciliation of the opening and closing ECL amounts and carrying values of the associated assets separately for different categories of ECL (for example, month and lifetime loss amounts) and bygd asset class.

Regulatory treatment of accounting provisions

The timely recognition of, and arvode for, kredit losses promote safe and sound banking systems and play an important role in finansinstitut supervision.

Key Provisions

Since Basel inom, the Basel Committee on Banking Supervision (BCBS) has recognised that there fryst vatten a close relationship between capital and provisions. This fryst vatten reflected in the regulatory treatment of accounting provisions beneath the Basel capital framework.

In October , the BCBS released for public comment a consultative document and a discussion paper on the policy considerations related to the regulatory treatment of accounting provisions beneath the Basel capital ramverk, in light of the shift to ECL bygd both the IASB and US Financial Accounting Standards Board.

Given the diversity of accounting and supervisory policies in respect of provisioning and capital across jurisdictions, coupled with uncertainty about the capital effects of the change to an ECL accounting ramverk, the BCBS decided to retain - for an interim period - the current regulatory treatment of provisions as applied beneath both the standardised approach and internal ratings-based approaches.

The BCBS will consider the longer-term regulatory capital treatment of provisions further, including åtagande analysis based on quantitative impact assessments.

The BCBS has also set out valfritt transitional arrangemang for the impact of ECL accounting on regulatory capital and the corresponding pelare 3 disclosure requirements should individual jurisdictions choose to implement such transitional arrangements.

This Executive Summary and related tutorials are also available in FSI Connect, the online learning tool of the finansinstitut for International Settlements.