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EDTF will present findings regarding the risk disclosure of banks to the IASB

20 Nov 2012

On 30 October 2012, the Enhanced Disclosure Task Force (EDTF) published a report a report to the Financial Stability Board (FSB) recommending key enhancements to the risk disclosures made by banks. During the current IASB meeting, the EDTF will present the findings and recommendations from the report to the IASB. A slide deck for the presentation has now been made available on the IASB website.

The report identifies seven fundamental principles for enhancing risk disclosure which underpin the recommendations made and are considered to provide a framework for future work on risk disclosures and a benchmark by which banks can judge the quality of their current and future disclosures.

On 2 November 2012, the IASB published a press release welcoming the report saying that it "complements our own efforts to enhance transparency and the usefulness and comparability of financial statements". The IASB has also announced that it will consider the EDTF recommendations as it develops new financial reporting disclosure principles in the conceptual framework project.

During the session with the IASB (Wednesday, 21 November, 11.00-12.00 GMT), the EDTF will therefore focus on areas of particular interest to the IASB. The following points are mentioned in the presentation (quoted from the slide deck):

  • EDTF consistent with paragraphs 7 and 31 of IFRS 7
  • Disclosure can be made in audited accounts, MD&A or Pillar 3
  • Principles and recommendations build on existing GAAP and other disclosure requirements
  • Reflects current risk issues focussed on banks
  • Recommendation to describe the policy for identifying impaired loans, including how the bank defines impaired, restructured and cured loans as well as explanation of the loan forbearance policies
  • Reconciliation of movement in impaired loans
  • Maturity analysis of assets and liabilities on a residual contractual maturity basis
  • Encumbered assets table
  • Package of liquidity and funding recommendations and usefulness of consolidated cashflow statement

Please click for access to the full slide deck on the IASB website. Registration for the webcast of this session is possible through the IASB page for the November IASB meeting.