Accounting Provisioning Under the Expected Credit Loss Framework : IFRS 9 in Emerging Markets and Developing Economies - A Set of Policy Recommendations

In 2009, the G-20 in London recommended that accounting standard setters, strengthen accounting recognition of loan-loss provisions by incorporating a broader range of credit information (G20 2009). In response, the International Accounting Standar...

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Main Authors:	Caruso, Ezio, D'Hulster, Katia, Kliatskova, Tatsiana, Ortiz, Juan
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	INTERNATIONAL FINANCIAL REPORTING STANDARDS ACCOUNTING STANDARDS BASEL COMMITTEE ON BANKING SUPERVISION LOAN LOSS PROVISION PRUDENTIAL REGULATIONS FINANCIAL OVERSIGHT
Online Access:	http://documents.worldbank.org/curated/en/700511616757978211/Accounting-Provisioning-Under-the-Expected-Credit-Loss-Framework-IFRS-9-in-Emerging-Markets-and-Developing-Economies-A-Set-of-Policy-Recommendations http://hdl.handle.net/10986/35373

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spelling	okr-10986-353732021-06-14T09:54:36Z Accounting Provisioning Under the Expected Credit Loss Framework : IFRS 9 in Emerging Markets and Developing Economies - A Set of Policy Recommendations Caruso, Ezio D'Hulster, Katia Kliatskova, Tatsiana Ortiz, Juan INTERNATIONAL FINANCIAL REPORTING STANDARDS ACCOUNTING STANDARDS BASEL COMMITTEE ON BANKING SUPERVISION LOAN LOSS PROVISION PRUDENTIAL REGULATIONS FINANCIAL OVERSIGHT In 2009, the G-20 in London recommended that accounting standard setters, strengthen accounting recognition of loan-loss provisions by incorporating a broader range of credit information (G20 2009). In response, the International Accounting Standards Board (IASB) issued International Financial Reporting Standard 9 (IFRS 9) in July 2014, it became effective in 2018. This paper relies on a survey and bilateral meetings with prudential supervisors. This paper deals with the expected credit loss framework, with a particular focus on EMDEs. In 2020, EMDEs were facing challenges when dealing with IFRS 9 during the Coronavirus (COVID-19) pandemic, given the unprecedented reversals in capital flows as global risk appetite declined. EMDEs are coping with weaker health care systems and more limited fiscal space to provide support. Based on the experience of the surveyed countries and their reflections on challenges and potential remedies that they used while implementing the IFRS 9 accounting framework, the authors identified a set of high level policy recommendations for prudential supervisors in emerging markets and developing economies (EMDEs) willing to transition to IFRS 9. The paper is organized as follows: Section 2 presents the survey results; Section 3 presents policy recommendations for supervisory authorities in countries that implemented IFRS 9 as well as in countries that are still in the process of IFRS 9 implementation; and Section 4 offers conclusions. 2021-04-05T19:13:14Z 2021-04-05T19:13:14Z 2021 Report http://documents.worldbank.org/curated/en/700511616757978211/Accounting-Provisioning-Under-the-Expected-Credit-Loss-Framework-IFRS-9-in-Emerging-Markets-and-Developing-Economies-A-Set-of-Policy-Recommendations http://hdl.handle.net/10986/35373 English Equitable Growth, Finance and Institutions Insight; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Other Financial Accountability Study
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INTERNATIONAL FINANCIAL REPORTING STANDARDS ACCOUNTING STANDARDS BASEL COMMITTEE ON BANKING SUPERVISION LOAN LOSS PROVISION PRUDENTIAL REGULATIONS FINANCIAL OVERSIGHT
spellingShingle	INTERNATIONAL FINANCIAL REPORTING STANDARDS ACCOUNTING STANDARDS BASEL COMMITTEE ON BANKING SUPERVISION LOAN LOSS PROVISION PRUDENTIAL REGULATIONS FINANCIAL OVERSIGHT Caruso, Ezio D'Hulster, Katia Kliatskova, Tatsiana Ortiz, Juan Accounting Provisioning Under the Expected Credit Loss Framework : IFRS 9 in Emerging Markets and Developing Economies - A Set of Policy Recommendations
relation	Equitable Growth, Finance and Institutions Insight;
description	In 2009, the G-20 in London recommended that accounting standard setters, strengthen accounting recognition of loan-loss provisions by incorporating a broader range of credit information (G20 2009). In response, the International Accounting Standards Board (IASB) issued International Financial Reporting Standard 9 (IFRS 9) in July 2014, it became effective in 2018. This paper relies on a survey and bilateral meetings with prudential supervisors. This paper deals with the expected credit loss framework, with a particular focus on EMDEs. In 2020, EMDEs were facing challenges when dealing with IFRS 9 during the Coronavirus (COVID-19) pandemic, given the unprecedented reversals in capital flows as global risk appetite declined. EMDEs are coping with weaker health care systems and more limited fiscal space to provide support. Based on the experience of the surveyed countries and their reflections on challenges and potential remedies that they used while implementing the IFRS 9 accounting framework, the authors identified a set of high level policy recommendations for prudential supervisors in emerging markets and developing economies (EMDEs) willing to transition to IFRS 9. The paper is organized as follows: Section 2 presents the survey results; Section 3 presents policy recommendations for supervisory authorities in countries that implemented IFRS 9 as well as in countries that are still in the process of IFRS 9 implementation; and Section 4 offers conclusions.
format	Report
author	Caruso, Ezio D'Hulster, Katia Kliatskova, Tatsiana Ortiz, Juan
author_facet	Caruso, Ezio D'Hulster, Katia Kliatskova, Tatsiana Ortiz, Juan
author_sort	Caruso, Ezio
title	Accounting Provisioning Under the Expected Credit Loss Framework : IFRS 9 in Emerging Markets and Developing Economies - A Set of Policy Recommendations
title_short	Accounting Provisioning Under the Expected Credit Loss Framework : IFRS 9 in Emerging Markets and Developing Economies - A Set of Policy Recommendations
title_full	Accounting Provisioning Under the Expected Credit Loss Framework : IFRS 9 in Emerging Markets and Developing Economies - A Set of Policy Recommendations
title_fullStr	Accounting Provisioning Under the Expected Credit Loss Framework : IFRS 9 in Emerging Markets and Developing Economies - A Set of Policy Recommendations
title_full_unstemmed	Accounting Provisioning Under the Expected Credit Loss Framework : IFRS 9 in Emerging Markets and Developing Economies - A Set of Policy Recommendations
title_sort	accounting provisioning under the expected credit loss framework : ifrs 9 in emerging markets and developing economies - a set of policy recommendations
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/700511616757978211/Accounting-Provisioning-Under-the-Expected-Credit-Loss-Framework-IFRS-9-in-Emerging-Markets-and-Developing-Economies-A-Set-of-Policy-Recommendations http://hdl.handle.net/10986/35373
_version_	1764482898716524544

Accounting Provisioning Under the Expected Credit Loss Framework : IFRS 9 in Emerging Markets and Developing Economies - A Set of Policy Recommendations

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