EDTF guidance for banks

With IFRS 9 Financial Instruments issued and its application not far off (it is effective for annual reporting periods beginning on or after 1 January 2018, subject to endorsement for EU reporters), and an expected credit loss approach due from the US Financial Accounting Standards Board (FASB), the Enhanced Disclosure Task Force (EDTF) has supplemented its 2012 report to consider:

  • what additional information will be valuable in the run up to the adoption to the new Expected Credit Loss (ECL) accounting approaches; and
  • best practice disclosure following adoption of these approaches.

Banks should consider the Enhanced Disclosure Task Force (EDTF) guidance for their next annual reports - it provides guidance around disclosures to be made by major banks before, during and after transition to IFRS 9. Those with December year ends should act quickly to ensure appropriate implementation. In particular, banks' Chief Accountants need to consider their implementation projects in the light of the new recommendations to ensure that the appropriate data are available for their expected credit loss disclosures.

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What the new Enhanced Disclosure Task Force report means for banks Image

What the new Enhanced Disclosure Task Force report means for banks

08 Dec, 2015

In the wake of the financial crisis, the G20 asked the IASB to revise accounting requirements so that financial institutions’ expected credit losses were captured as well as losses that had been incurred. The Financial Stability Board (FSB) also established the Enhanced Disclosure Task Force, a group comprising banks, analysts, investors and auditors. Banks should consider the Enhanced Disclosure Task Force (EDTF) guidance for their next annual reports. Those with December year ends should act quickly to ensure appropriate implementation. In particular, banks' Chief Accountants need to consider their implementation projects in the light of the new recommendations to ensure that the appropriate data are available for their expected credit loss disclosures.

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EDTF publishes report on expected credit losses and disclosures and 2015 progress report on implementation of the general EDTF principles and recommendations

07 Dec, 2015

The Financial Stability Board (FSB) has published two reports by its Enhanced Disclosure Task Force (EDTF). The first report considers the changes banks will need to make to their financial disclosures with the implementation of a new expected credit loss accounting standard. The second report is shows the progress that has been made towards implementing the 2012 EDTF recommendations regarding enhancing the risk disclosure of banks.

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Second EDTF progress report on the implementation of disclosure recommendations

01 Oct, 2014

In October 2012, the Enhanced Disclosure Task Force (EDTF) presented a report to the Financial Stability Board (FSB) recommending key enhancements to the risk disclosures made by banks. The report identified seven fundamental principles for enhancing risk disclosure and included 32 specific recommendations. After a first progress report published in 2013, the EDTF has now published a second progress report in line with its original report.

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EDTF progress report on the implementation of disclosure recommendations

22 Aug, 2013

In October 2012 the Enhanced Disclosure Task Force (EDTF) presented a report to the Financial Stability Board (FSB) recommending key enhancements to the risk disclosures made by banks. The report identified seven fundamental principles for enhancing risk disclosure and included 32 specific recommendations. The EDTF has now published a progress report in line with its October 2012 report.

FSB (Financial Stability Board) (lt green) Image

Enhancing the risk disclosure of banks

30 Oct, 2012

The Enhanced Disclosure Task Force (EDTF) has presented a report to the Financial Stability Board (FSB) recommending key enhancements to the risk disclosures made by banks. 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.

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