Skip to main content

Key regulations: accounting and NPL

IAS 39
Scope: Global | Regulator: IASB | Industry: All | Topic: Provisions | Date of publication: February, 2011
Regulation that outlines the principles for the recognition and measurement of financial assets, financial liabilities and some contracts to buy and sell non-financial assets.
Click here to access this regulation

IFRS 9
Scope: Global | Regulator: IASB | Industry: All | Topic: Provisions | Date of publication: July, 2014
The purpose of IFRS 9 is to establish the principles related to the reporting of financial assets and liabilities with the aim of improving and simplifying information on financial instruments.
Click here to access this regulation

Guidance on accounting for expected credit losses
Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Accounting | Date of publication: December, 2015
Guidelines with the aim at setting out supervisory guidance on sound credit risk practices associated with the implementation and ongoing application of expected credit loss accounting frameworks.
Click here to access this regulation

Guidelines on definitions of NPE and forbearance
Scope: Global | Regulator: BCBS | Industry: Banking | Topic: Credit risk; Capital | Date of publication: April, 2017
Guidelines on the definitions of non-performing exposures (NPE) and forbearance, which are aimed to harmonise the scope, recognition criteria, and the level of application of both terms. These definitions have not been designed to replace those used for accounting purposes or the definitions of default which are used in the IRB approach or in the SA for credit risk, but to be used for other purposes (e.g. supervisory asset quality monitoring, Pillar 3 disclosure on asset quality, etc.).
Click here to access this regulation

Guidelines on the application of the definition of default
Scope: EU | Regulator: EBA | Industry: Banking | Topic: Credit risk | Date of publication: September, 2016
Guidelines specifying the application of the definition of default, which clarify aspects such as the days past due criterion, the indications of unlikeliness to pay, the application of the definition of default in external data, the criteria for the return to a non-defaulted status, etc.
Click here to access this regulation

Guidance to banks on non-performing loans (NPL)
Scope: EU | Regulator: ECB | Industry: Banking | Topic: Credit risk; Capital; Provisions | Date of publication: March, 2017
Guidance to banks on how they should tackle non-performing loans (NPLs). The guidance provides recommendations to banks and sets out a number of best practices that will constitute the ECB’s supervisory expectations going forward.
Click here to access this regulation

Guidelines on credit risk management practices and accounting for expected credit losses (ECL)
Scope: UE | Regulator: EBA | Industry: Banking | Topic: Credit risk; accounting; provisions| Date of publication: May, 2017
Final Guidelines on credit institution’s credit risk management practices and accounting for ECL with the aim of harmonizing the criteria established by the BCBS and ensuring consistent interpretations and practices according to IFRS 9.
Click here to access this regulation

Circular 4/2017 on public and confidential financial information standards and formats
Scope: Spain | Regulator: BdE | Industry: Banking | Topic: Accounting | Date of publication: December, 2017
Circular 4/2017 on public and confidential financial information standards and formats, which supersedes Circular 4/2004, aimed to adapt the current accounting framework of Spanish credit institutions to the accounting standards IFRS 9 and IFRS 15, which amend the criteria for recognising financial instruments and revenues, respectively.
Click here to access this regulation

© GMS Management Solutions, S.L., 2020. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.