The Global Public Policy Committee (GPPC)¹ have issued a report titled The implementation of IFRS 9 impairment requirements by banks.

The paper is addressed primarily to the audit committees of systemically-important banks, although much of its content will be relevant to other banks and financial institutions, and aims to promote the implementation of accounting for expected credit losses to a high standard.

The paper is structured in a way to assist the two key groups within a bank that will be instrumental in ensuring a high-quality implementation of IFRS 9:

• Those charged with governance, who will oversee implementation. Section 1 of the paper addresses the key areas of focus for this group, such as governance and controls, sophistication and proportionality and transition issues.
• Those finance, risk management, IT and other executives who are charged with implementing the new requirements. Section 2 of the paper discusses key components of implementing expected credit loss accounting, including expected credit loss methodology, default, probability of default, exposure, loss given default, discounting, staging assessment, macro-economic forecasts and forward-looking information.

Please click to access The implementation of IFRS 9 impairment requirements by banks and a corresponding press release.