Many financial services companies have successfully adopted IFRS as their primary reporting framework with the remaining financial services companies expected to follow suit.
Those firms that have made it through the initial IFRS transition understand the challenges involved and many in the Financial Services industry may now be tempted to forget about IFRS as they focus on other significant business priorities. However, there is still much to do to embed existing IFRS and prepare for the introduction of new IFRSs such as IFRS 9 which will, in due course, replace current financial instrument accounting rules prescribed by IAS39. At Deloitte, we have the expertise to help you navigate the way forward.
The IASB is currently preparing a suite of new accounting standards covering topics such as Financial Instrument Classification and Measurement, Loan Impairment, Hedging, Consolidation, Offset and Revenue Recognition amongst others. Whilst some of these new regulations are still being finalised and the mandatory effective date is still some years away, many institutions have begun planning for implementation. In addition, IFRIC continue to issue interpretations on existing standards.
Details of new standards and interpretations, and amendments to existing standards can be found at our specialist site, www.iasplus.com.
Current regulatory rules mandated by Basel II has strong links with IAS 39 and related standards, and many institutions have, where possible, exploited the interdependencies between these regimes. These synergies are likely to be enhanced by the current accounting proposals and many institutions are planning to implement forthcoming accounting change alongside their current finance and regulatory change initiatives.
Contact us to understand how to integrate your approach by understanding areas of commonality, allowing you to most efficiently comply with these requirements, and enhance the quality and consistency of your financial and risk reporting.
You should be continuing to review assumptions and judgements made in developing your initial IFRS solutions, incorporating developments in IFRS interpretation as well as reacting to and preparing for changes to your business and the overall economic environment. Contact us for assistance with an IFRS post-implementation review of systems workaround, or for advice on developments in interpretation or updating your IFRS assumptions or judgements.
The IASB’s current agenda includes a number of projects that will impact financial services companies. You can influence the outcome by offering a commercial perspective on the technical debates.
Details of all current IASB projects can be found at our specialist site, www.iasplus.com.