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26 January 2019

ICAEW: Brexit and IFRS 9 Financial instruments – expected credit losses


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Although IFRS 9 is already applicable, there is still a lot of uncertainty with regards to the UK leaving the EU on 29 March 2019. The ICAEW´s guide outlines some considerations to help banks and others, including auditors and internal auditors, approach these challenges before Brexit.


The new standard requires banks (and other preparers applying the standard) to provide for expected credit losses rather than simply incurred losses. Providing for future expected losses can be highly complex and judgemental. Brexit and the uncertainty around it could potentially create further challenges.

The ICAEW´s guide will provide an insight into Brexit’s potential impact on scenario analysis, including in the event of a no deal. It will also look at additional aspects of governance which may require additional time and effort, such as around models and assumptions, and the issues of dealing with non-linearity as well as disclosure requirements and how Brexit could influence those.

Full press release

Full guide

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© ICAEW - Institute of Chartered Accountants in England and Wales


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