As we move adopt IFRS 9, there is a heightened focus on IFRS 9 Classification and Measurement (C&M) requirements of the standard.
Although the impact of C&M was expected to be less significant compared to impairment, banks have become aware that despite limited quantitative impacts, the new C&M requirements pose similar challenges in terms of organisational engagement, management judgment, increased complexity in key systems and processes, and will require more intensive oversight with increased stakeholder scrutiny.
In April 2017, EY performed an IFRS 9 Classification and Measurement survey of 60 banking institutions globally to assess the ‘state of readiness’ in the implementation of their IFRS 9 programme with a particular focus on C&M requirements. This paper outlines the survey results, including the expected reclassifications of IFRS 9, key operating model and policy decisions, and the assessment of business impacts.
If you would like to discuss the Classification and Measurement Survey, please don’t hesitate to get in touch with us. Maria Afontsenko, Senior Manager Assurance, is your primary contact for this topic, and you can reach her at 01 2212 414.