IFRS 9 will replace IAS 39, a complex rule-based standard with implementation discrepancies such as the EU “carve-out”. IFRS 9, to be implemented at the latest on January 1st, 2018, will change the philosophy of assets valuation, credit provisioning and hedging, functions that are at the core of the banking business. The share of assets that will have to be fair-valued will increase, sometimes dramatically, leading to higher P&L volatility. And the recognition of expected credit losses will be done much earlier, impacting the rating and provisioning processes.In this white paper, we show some key issues and impacts of IFRS 9.
Published on: August 2015
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