Third global IFRS banking survey

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Third global IFRS banking survey

Still far from land?

Introduction

As the IASB works hard to develop consensus in financial instruments accounting, including finding common ground with the US standard setter, the IASB has been the subject of much attention from politicians and press. As impairment accounting features high on the agenda of national regulators, including for example the Financial Policy Committee in the UK, this high level of attention looks set to continue.

Although of significant interest for banks, the requirements the IASB develops have to be suitable for all types of businesses. That said, banks’ financial statements will be affected to a greater extent by the financial instruments proposals than will many other businesses. The financial services industry is watching the IASB’s and the Financial Accounting Standards Board’s pronouncements very closely. 

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About this report

Deloitte wanted to find out what banks think about the IASB’s recent activities and planned direction of travel, in order to enrich conversations between banks, standard setters, regulators, accountants and auditors. This year’s report is based on responses to 29 technical and practical questions on the following topics:

  • awareness and high-level impact of accounting change;
  • IFRS 9 Financial Instruments including convergence, classification and measurement, impairment and hedge accounting;
  • IFRSs 10 Consolidated Financial Statements and 12 Disclosure of Interests in Other Entities;
  • IFRS 13 Fair Value Measurement, specifically debit valuation adjustments; and
  • offsetting.

This report captures banks’ current views on the International Accounting Standards Board’s (IASB) new standards and proposed changes. To achieve this, Deloitte surveyed 70 banks from across the world, including 19 Global Systemically Important Financial Institutions (G-SIFIs).

The survey asked questions about the interaction between the IASB and Financial Accounting Standards Board’s (FASB) proposals, and how probable convergence between them is. The survey also asked how banks would like to see IFRS 9 develop with respect to impairment, classification and measurement, and hedge accounting and what impact the new standards on fair value measurement will have.

This is the third time Deloitte have surveyed the world’s major banks on these topics. Previous questionnaires were sent to participants in the first and last quarters of 2011, and findings were published in IFRS 9 Impairment Survey 2011 and Second Global IFRS Banking Survey – Q1 2012 respectively. This survey’s growing dataset from these means the survey is able to examine how views towards accounting standards are changing over time.

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