IFRS 9 results in changes for the calculation of Value Adjustments from 1st January 2018. Additionally, the Basel Committee of Banking Supervision (BCBS) has set the framework for the new standard’s implementation in the banking sector with its “Guidance on credit risk and accounting for expected losses” in December 2015. These changes will have a significant impact on future profit and loss statements, equity, credit risk assessments and the systemic requirements for banks.
Our ALM Forum provides an overview of the changes together with an example of the impact on profit and losses and concludes with consequences for banks.
We are looking forward to receiving your feedback! Please send your questions and suggestions to Patrick Haas at haas[at]financetrainer.com.