Quantified impacts of IFRS 9: initial findings
At the end of February 2018, all the major European banks published information on the impact of the implementation of the new standard IFRS 9. IFRS 9 introduces numerous changes (classification, impairment, hedging, etc.). Their impacts at the transition date vary widely from one bank to another. They are negative in most cases, but for some banks are virtually nil or even positive. The indicators used are also variable: though the impact on the CET1 ratio is a firm common indicator, the level of further detail reported varies significantly from one institution to another.
Sample of European banks
30 leading STOXX Europe 600 banks preparing their consolidated accounts under IFRS
90% of the banks in the sample reported the impact of IFRS 9 on their CET1 ratio, either quantitatively, or by indicating that the expected impact was not significant
Analysis of IFRS 9 impacts by phase
- Phase 1 of the standard introduced new requirements for the classification and measurement of financial instruments;
- Phase 2 of the standard introduced new impairment principles;
- Phase 3 of the standard introduced new rules for hedge accounting.