The implementation of IFRS 9 impairment requirements by banks

Published on: 17 Jun, 2016

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 download The implementation of IFRS 9 impairment requirements by banks below. A corresponding press release is available here.


1 The Global Public Policy Committee (GPPC) of the six largest international accounting networks comprises representatives of BDO, Deloitte, EY, Grant Thornton, KPMG and PwC, and focuses on public policy issues for the profession.


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