EUROPEAN PARLIAMENT PLENARY / Accounting standards

European Parliament conditionally backs introduction of IFRS 9 in the EU

Brussels, 06/10/2016 (Agence Europe)

The European Parliament is not objecting to the introduction in the European Union of International Financial Reporting Standard (IFRS) 9 on accounting for financial instruments as long as the European Commission answers its concerns about the negative impact of introducing IFRS 9 on EU banks and insurance.

IFRS 9 introduces a depreciation model based on expected losses rather than solely actual losses.  Banks will have to move from 12-month provisions for all their financial portfolios...