This accounting standard aims to strengthen accounting recognition of loan-loss provisions, valuation of uncertainty and provisions for on and off balance sheet exposures. The idea is to shift towards a higher quality global accounting standard.
IFRS 9 integrates accounting, risk and business which makes it somewhat complex and time-consuming to implement across an organisation and necessitates new processes and IT changes to fulfil new accounting and disclosing requirements.
Implications for the bank are ensuring a smooth accounting internal changeover from IAS 39 standard to IFRS 9 and possibly upgrading of internal financial applications. BRSANALYTICS is a flexible solution which aggregates multiple data sources provided by the bank and provides automatic placement and data population in the FINREP regulatory returns. Our team has investigated the IFRS9 impact on the BRSANALYTICS FINREP solution, and we can assure that from the draft regulations available, our FINREP solution will be made IFRS9 compliant ensuring a smooth transition from one reporting period to the next due to a phased approach to be adopted with the client.