What the new Enhanced Disclosure Task Force report means for banks
Will your bank demonstrate best practice disclosure in its next annual report? Do you have the data you need to make the disclosures users would like to see in the next three years?
In the wake of the financial crisis, the G20 asked the International Accounting Standards Board 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.