Setting Scenarios and Assessing Scenario Probabilities under IFRS 9 Accounting

2017 ◽  
Author(s):  
Carl LLnnbark
Keyword(s):  
Ifrs 9

Business Model Literature Overview

2014 ◽  
pp. 79-130 ◽  
Author(s):  
Ales Novak
Keyword(s):  
Business Model ◽  
Financial Reporting ◽  
Business Models ◽  
Potential Role ◽  
Financial Instruments ◽  
Business Logic ◽  
Literature Overview ◽  
Ifrs 9 ◽  
Definition Of

The term ?business model' has recently attracted increased attention in the context of financial reporting and was formally introduced into the IFRS literature when IFRS 9 Financial Instruments was published in November 2009. However, IFRS 9 did not fully define the term ‘business model'. Furthermore, the literature on business models is quite diverse. It has been conducted in largely isolated fashion; therefore, no generally accepted definition of ?business model' has emerged. Therefore, a better understanding of the notion itself should be developed before further investigating its potential role within financial reporting. The aim of this paper is to highlight some of the perceived key themes and to identify other bases for grouping/organizing the literature based on business models. The contributions this paper makes to the literature are twofold: first, it complements previous review papers on business models; second, it contains a clear position on the distinction between the notions of the business model and strategy, which many authors identify as a key element in better explaining and communicating the notion of the business model. In this author's opinion, the term ‘strategy' is a dynamic and forward-looking notion, a sort of directional roadmap for future courses of action, whereas, ‘business model' is a more static notion, reflecting the conceptualisation of the company's underlying core business logic. The conclusion contains the author's thoughts on the role of the business model in financial reporting.

Zum inkonsistenten Inhalt des Geschäftsmodellbegriffs in IFRS 9

2019 ◽  
Vol 31 (3) ◽  
pp. 217-223
Author(s):  
Felix Krauß
Keyword(s):  
Ifrs 9

Zusammenfassung Obwohl innerhalb der IFRS keine explizite Begriffsdefinition des Geschäftsmodells erfolgt, ist dennoch eine einheitliche Verwendung des Terms in IFRS 9 grundsätzlich wünschenswert. Allerdings lässt sich auf Grundlage der Kategorisierungsvorschriften auf der einen und der Umgliederungsvorschriften auf der anderen Seite ein jeweils abweichender Inhalt des Geschäftsmodellbegriffs ableiten, was die allgemein mit dem Begriff verbundenen Verständnisprobleme befördert. Dem kommt auch eine aufsichtsrechtliche Relevanz dahingehend zu, als dass die aufsichtsrechtliche Anlage- bzw. Handelsbuchzuordnung grundsätzlich konsistent zum Geschäftsmodell des IFRS 9 erfolgen sollte. Ein einheitlicher Begriffsinhalt wäre dabei bereits durch eine nur geringfügige, klarstellende Änderung des Standards zu erreichen.

IFRS 9: Estimation of expected credit losses and their recognition in financial reporting

2019 ◽  
Vol 22 (4) ◽  
pp. 364-378
Author(s):  
T.B. Kuvaldina ◽  
◽  
E.V. Lobachev ◽  
Keyword(s):  
Financial Reporting ◽  
Ifrs 9 ◽  
Credit Losses

AS ASSIMETRIAS ENTRE A IFRS 9 E AS CONSULTAS PÚBLICAS DO BANCO CENTRAL DO BRASIL

2021 ◽  
Vol 10 (Especial) ◽  
Author(s):  
George André Willrich Sales ◽  
Cristiane Oliveira da Silva Bezerra ◽  
Roberta Lira Caneca
Keyword(s):  
Ifrs 9

O estudo identifica assimetrias entre o IFRS 9 e as Consultas Públicas do Banco Central doBrasil – Editais 54/2017 e 60/2018 – e os seus impactos na carteira de crédito da CAIXA. Foirealizada uma pesquisa quantitativa, quanto à abordagem do problema, exploratória, quanto aosobjetivos, e um estudo de caso, quanto aos procedimentos. Os resultados demonstram que aconvergência do IFRS 9 ao padrão BRGAAP pelo BACEN trará um impacto no aumento daprovisão para perdas nas operações de crédito da CAIXA de aproximadamente 70% e que aindahaverá a necessidade de manutenção de controles operacionais segregados para atendimentoaos requisitos do padrão IFRS, especificamente no que se refere ao reconhecimento de receitasde juros das operações classificadas no Estágio 3, em que o BACEN determina que a receitanão deve ser registrada antes de seu efetivo recebimento, enquanto o órgão reguladorinternacional estabelece o critério para registro da receita em base líquida da provisão. Oreconhecimento da provisão com base no modelo de perdas esperadas adotado pelo IFRS 9 epropostas normativas do BACEN mais conservadoras que norma internacional, tende aapresentar valores superiores às perdas efetivas, entretanto, apresenta maior segurança aomercado em situações de crise.

scholarly journals Adapting the Default Weighted Survival Analysis Modelling Approach to Model IFRS 9 LGD

Risks ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 103
Author(s):  
Morne Joubert ◽  
Tanja Verster ◽  
Helgard Raubenheimer ◽  
Willem D. Schutte
Keyword(s):  
Survival Analysis ◽  
Financial Reporting ◽  
Proportional Hazards ◽  
Proportional Hazards Model ◽  
Survival Curve ◽  
Cox Proportional Hazards ◽  
Cox Proportional Hazards Model ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Ifrs 9

Survival analysis is one of the techniques that could be used to predict loss given default (LGD) for regulatory capital (Basel) purposes. When using survival analysis to model LGD, a proposed methodology is the default weighted survival analysis (DWSA) method. This paper is aimed at adapting the DWSA method (used to model Basel LGD) to estimate the LGD for International Financial Reporting Standard (IFRS) 9 impairment requirements. The DWSA methodology allows for over recoveries, default weighting and negative cashflows. For IFRS 9, this methodology should be adapted, as the estimated LGD is a function of in the expected credit losses (ECL). Our proposed IFRS 9 LGD methodology makes use of survival analysis to estimate the LGD. The Cox proportional hazards model allows for a baseline survival curve to be adjusted to produce survival curves for different segments of the portfolio. The forward-looking LGD values are adjusted for different macro-economic scenarios and the ECL is calculated for each scenario. These ECL values are probability weighted to produce a final ECL estimate. We illustrate our proposed IFRS 9 LGD methodology and ECL estimation on a dataset from a retail portfolio of a South African bank.

Issues and challenges of IFRS 9 in Malaysian Islamic financial institutions: recognition criteria perspective

2021 ◽  
Vol 12 (2) ◽  
pp. 239-257
Author(s):  
Marziana Madah Marzuki ◽  
Abdul Rahim Abdul Rahman ◽  
Ainulashikin Marzuki ◽  
Nathasa Mazna Ramli ◽  
Wan Amalina Wan Abdullah
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
Business Models ◽  
Fair Value ◽  
Financial Instruments ◽  
Structured Interviews ◽  
Content Type ◽  
Reporting Framework ◽  
Islamic Financial Institutions ◽  
Ifrs 9

Purpose The purpose of this paper is to investigate the effects and challenges of the new amendment of International Financial Reporting Standards (IFRS) 9 in Malaysia from the perspectives of regulators, auditors, accountants and academicians in Malaysian Islamic financial institutions. For the purpose of this study, this paper focuses on the recognition criteria perspective of the standard, which provides a basic understanding of the financial reporting framework. Design/methodology/approach Using 10 series of semi-structured interviews undertaken with key individuals in regulatory bodies, audit companies, full-fledged Malaysian Islamic Banks and Malaysian higher learning institutions. Findings The findings revealed that IFRS 9 strengthens International Accounting Standards 39 in terms of relevance and reliability, recognition of financial instruments and identification of business models. Nevertheless, Islamic financial institutions face challenges in terms of a faithful representation of fair value, substance over form, identification of financial instruments before recognition criteria and the extent of the role of risk management in reducing manipulation in identifying business models. Research limitations/implications This study provides implications to regulators and standard setters in Malaysia to enhance the quality of financial reporting framework and practices in Islamic financial institutions in this country using IFRS 9. Practical implications Practically, the findings of this study can be used by the regulators to resolve the issues that arise in adopting IFRS 9 among Islamic financial institutions to further enhance financial reporting quality. Originality/value The findings of this study are very important to ensure that the adoption of IFRS among Islamic financial institutions are in line with Sharīʿah principles. To date, no studies have been done on the challenges of adopting IFRS 9 among Islamic financial institutions in Malaysia.

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