The European Banking Authority (EBA) has amended its final draft implementing technical standards (ITS) on the reporting of financial data, in light of the implementation of IFRS 9 in 2018.

IFRS 9 became EU law on 22 November 2016 and replaces IAS 39, Financial Instruments: Recognition and Measurement. It will come into effect for financial reporting of years beginning on or after 1 January 2018.

Reflecting changes brought about by the new IFRS 9

In its final report, the EBA stated: “Most of the amendments to these final draft ITS reflect the changes brought about by the new IFRS 9 requirements although the EBA deemed necessary to review also some parts of the FINREP framework based on the experience gained through the submitted data and the feedback received from compiling banks. The amendments also reflect the EBA's review of templates and instructions used by institutions under the national General Accepted Accounting Principles (GAAP) so as to ensure the integrated framework for supervisory reporting of financial information is aligned.”

The amendments to the draft ITS include changes to: the concepts of gross carrying amount, accumulated changes in fair value due to credit risk, non-performing and forborne exposures, the reporting of economic hedges, investments in associates, subsidiaries and joint ventures and their dividends, mortgage exposures, and the counterparty of financial assets. The changes apply to both IFRS and GAAP templates.

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CTMfile take: This article gives more detail about what IFRS 9 actually means for corporates.