On 31 May 2017, the European Commission adopted a proposal for a Regulation amending the Capital Requirements Regulation (CRR) as regards the transitional period for mitigating the impact on own funds of the introduction of International Financial Reporting Standard 9 (IFRS 9) and the large exposures treatment of certain public sector exposures denominated in non-domestic currencies of member states. This proposal suggested the insertion of a new Article 473a in the CRR, which includes provisions on the introduction of IFRS 9 and IFRS 9–like expected credit loss models (analogous ECLs) transitional arrangements, in order to phase-in the impact of the impairment requirements resulting from IFRS 9 on capital and leverage ratios.
In addition, the proposed Regulation includes a mandate for the European Banking Authority (EBA) to issue guidelines on IFRS 9 and analogous ECLs transitional arrangements disclosure requirements.
The EBA has now published a consultation paper on guidelines which specify the uniform disclosure format for institutions’ disclosure requirements on IFRS 9 and analogous ECLs transitional arrangements with the aim of achieving a consistent and comparable disclosure among institutions.
The deadline for comments on the consultation paper is 13 September 2017. The EBA plans to hold a public hearing on the draft guidelines on 7 September 2017. Once finalised the guidelines apply from 1 January 2018 until the end of the transitional period referred to in paragraph 6 of Article 473a of the CRR.
View EBA consults on draft guidance on uniform disclosure of IFRS9 transitional arrangements, 13 July 2017