During the RiskMinds Regulation Digital Week, industry experts brought crucial insights on a range of regulations impacting the risk management industry.
S&P Global, Market Intelligence delivered thought leadership on IFRS9, with a webinar and article highlighting implementation challenges and credit loss measuring techniques for IFRS9 and CECL.
Watch the full webinar, "When the Rubber Meets the Road on IFRS9 Implementation", with Andres Cuenca-Torres (Senior Director, Head of Relationship Management EMEA, Risk Services) and Catarina Souza (Associate Director, Risk Services)
*This webinar was originally broadcast for S&P Global, June 2016.
After the global financial crisis in 2008, the G20 (Group of Twenty) tasked the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) to develop a single set of high-quality global standards that would provide unbiased, transparent and relevant financial reporting to investors. Consequently, new financial instruments standards, such as the International Financial Reporting Standards 9 (IFRS9) and Current Expected Credit Losses (CECL) were developed.
IFRS9 will replace the current IAS 39; and will be implemented in several jurisdictions (including Europe and Canada). In the United States, where Generally Accepted Accounting Principles (GAAP) standards are currently in force, FASB finalized new accounting standards on “Recognition and Measurement” and “Expected Credit Loss” (ECL) of financial instruments, in January and June 2016 respectively.
IFRS9 and CECL will have a significant impact on entities with sizeable financial assets and, in particular, on financial institutions. The implementation date for IFRS9 is January 1, 2018 (earlier adoption date is permissible). The implementation date of CECL is (a) January 1, 2020 for listed institutions; and (b) December 31, 2021 for other institutions (earlier adoption will not be allowed until 2019).
We briefly review the requirements for calculating ECL for IFRS9 and CECL in this paper; and highlight through a case study on how CreditPro® can be used to calculate ECL for financial instruments issued by corporations, financial institutions, etc.
S&P Global Market Intelligence also sponsor the world's largest risk management event, RiskMinds International, Amsterdam 4-8 December.