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Resolution on International Financial Reporting Standards: IFRS 9

Summary

The European Parliament discusses the implementation of IFRS 9, a new accounting standard for financial instruments. It highlights concerns regarding its complexity and potential impact on banking stability and long-term investment.
10 06.10.2016
Other
finance
economy
business and competition

Key points

In force from 01/01/2018
  • The new accounting standard IFRS 9 is set to replace the previous IAS 39 standard starting in early 2018.
  • The standard introduces an 'expected loss' model, which aims to recognize potential loan losses earlier than the previous system.
  • There are concerns that the high level of professional judgment required could lead to inconsistent reporting or abuse by management.
  • The implementation may negatively impact the capital ratios of banks, which could affect their ability to provide loans.
Documents (PDFs)
MOTION FOR A RESOLUTION on International Financial Reporting Standards: IFRS 9 International Financial Reporting Standards: IFRS 9
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