International Financial Reporting Standard 9 (IFRS 9) replaces International Accounting Standard 39 (IAS 39), and will materially influence banks’ financial statements, with impairment calculations the most affected.
With the implementation of IFRS 9, banks should expect to be required to make some changes to the way they do business, allocate capital, and manage the quality of loans and provisions at origination. As a result banks will face modelling, data, reporting, and infrastructure challenges.
This white paper gives practitioners a snapshot of the “current state” of the industry, while assessing the challenges banks face while transitioning to IFRS 9. It also includes a series of comments on best practices and industry trends.