IFRS

The IASB proposes a new expected credit loss model (Replay)

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The IASB (International Accounting Standards Board) has issued a new exposure draft Financial Instruments: Expected Credit Losses as part of its IFRS 9 Financial Instruments project.

It proposes that entities would apply an expected credit loss model to their loans and debt securities that are not accounted for at fair value through profit or loss, trade receivables, lease receivables, loan commitments and financial guarantee contracts.

The proposals will affect both financial institutions and corporates and will likely result in earlier recognition of credit losses compared to the current incurred loss model.

In this webcast, we will discuss: 

  • The current status of the IFRS 9 Financial Instruments projects
  • The key requirements of the IASB's proposed expected credit loss model
  • The similarities and key differences between the IASB's and the FASB's proposals
  • How entities, in particular financial institutions, will be impacted by the IASB's proposed expected credit loss model

This webcast is aimed at CFOs, finance directors, audit committee members and controllers, from both financial and non-financial institutions, that take a proactive approach to addressing the impact of new standards and pronouncements under IFRS. The webcast will also offer participants the opportunity to question our panel of EY professionals and our external speaker, as they discuss the proposed expected credit loss model and its impact and implications on entities.

Please join us for this discussion and learn about the latest developments in the world of financial instruments accounting and reporting.

Panelists:

Sue Lloyd

IASB

Sue Lloyd is the Senior Director, Technical Activities at the IASB. She is jointly responsible for managing the technical activities at the IASB and more specifically she is responsible for the four main projects on the IASB’s current agenda. Before joining the staff of the IASB, she spent 15 years working in investment banking in Asia-Pacific and London, most recently as a managing director at Goldman Sachs. Prior to relocating to London she was a member of the AASB.

Steve Robb

Ernst & Young LLP (UK)

Steve Robb is a partner in the Financial Accounting and Advisory Services group of Ernst & Young LLP. Based in London, Steve provides assurance and advisory services to UK and international banks and has led a variety of projects including IFRS 9 and impairment modelling, IFRS conversions, due diligence on major credit card and retail lending portfolio acquisitions, finance transformations, contractual disputes and investigations, credit assessment processes and related accounting issues. Steve specialises in retail banking products and processes, and previously worked for a major UK retail bank. Steve has also advised the Bank of England, FSA and UK Treasury on technical accounting matters.

Robert Wadley

Ernst & Young LLP

Robert Wadley is a partner in the National Professional Practice Group of Ernst & Young LLP. Based in New York, Robert provides technical assistance to audit teams and clients on accounting issues, with a particular focus on financial instruments. He currently follows standard setting activities related to the classification and measurement, impairment and risk disclosures components of the FASB's project on financial instruments.

Prior to his current role, Robert worked in EY's Salt Lake City office leading and managing that office's assurance banking practice, which included a mix of regional, community and industrial banks. During this time, he also served as one of the firm's Capital and Liquidity Resources, consulting with engagement teams on accounting and auditing matters related to financial instruments impacted by the economic crisis.

Moderator:

Wei Li Chan

Ernst & Young Global Limited

Wei Li is a senior manager in the Global IFRS Services group of Ernst & Young Global Limited. Based in London, Wei Li is a member of the Global Financial Instruments Working Group where she focuses on the ongoing development of IFRS 9 Financial Instruments project, in particular, the impairment requirements. She is also part of the Global Banking and Capital Markets Sector Group and the Global Asset Management Sector Group.

Prior to joining the Global IFRS Services group, Wei Li worked in EY's London office managing a variety of banking and capital markets audit engagements.