With the effective date (1 January 2018) of IFRS 9 approaching, the implementation of the new standards has entered a critical stage.
What are the major changes of the financial statements under the new standards? In what areas does it require for special attention? What are the most challenging issues in IFRS 9 disclosure? In response to these questions, PwC's Accounting Consulting Services group have prepared this IFRS 9 for banks – Illustrative disclosures as a detailed guide for financial statements preparers. The publication is available in both English and Chinese version.
The illustration presents illustrative disclosures introduced or modified by IFRS 9 ‘Financial instruments’ for a fictional bank. However, as this publication is a reference tool, we did not remove any disclosures based on materiality. Consequently, some of the disclosures in this publication would likely be immaterial if the bank were a ‘real life’ company. Readers will need to take account of their individual circumstances in determining the approach taken to measuring ECL and the appropriate disclosures.
The approaches illustrated in this publication are one possible way the requirements of IFRS 9 ECL may be met. Alternative presentations may be acceptable if they comply with the specific disclosure requirements prescribed by IFRS.