Comments on IASB Exposure Draft: Amortised Cost and Impairment – 30/06/10

30 Jun 2010

In response to the International Accounting Standards Board (IASB)’s Exposure Draft on Amortised Cost and Impairment, IBFed has set out important industry concerns about the practicality of the IASB’s proposed model.  Whilst expressing general support for the Expected Loss approach, IBFed has stressed the importance of consistency with the current accounting methodology and banking practice.  In particular, IBFed expressed concern about changes to the calculation of interest rate risk and credit risk, the departure from the way banks manage their portfolios, and the different treatment of individually impaired loans from the current accounting standards.

The IBFed comment is available here.