08 December 2015

EBA launches consultation on FINREP using IFRS 9

The proposed amendments accommodate the changes in IFRS 9 compared to the current IAS 39 and include the following:

• changes for the measurement of financial instruments depending on the characteristics of cash flows and the business model within which the instrument is held;
• the new impairment model based on expected losses determined in accordance with the credit quality stage of a financial instrument;
• changes in the accounting for hedging operations closer to risk management.

This has entailed the deletion and addition of some rows and templates. The proposed amendments to FINREP templates and instructions are addressed to IFRS reporters and the EBA will consider at a later stage whether any adjustments are needed for non-IFRS reporters.

The proposed revisions are based on IFRS 9 as issued by the IASB and will be finalised once IFRS 9 is endorsed by the EU. FINREP IFRS will apply for the first reference date following the date at which IFRS 9 becomes mandatory in the EU. Assuming the implementation date is not modified compared to the IASB version, the first application date would be 1 January 2018 and the first reporting reference date 31 March 2018.

Comments to this consultation can be sent to the EBA by 8 March 2016. The public hearing for the ITS will take place at the EBA premises on 5 February 2016 from 13.00 to 14.30 UK time.

Press release

Consultation paper

Annex 1 of the CP = templates

Accompanying document Annex 1 in tracked changes

Annex 2 of the CP = instructions

Accompanying doc Annex 2 instructions in tracked change

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