International reporting: audit considerations under IFRS 9

Under the new accounting rules set out in IFRS 9 Financial Instruments, there are a number of key issues for auditors to consider including lending models, credit risk and proportionality, says Jeroen Van Doorsselaere, IFRS expert at Wolters Kluwer Financial Services

The Global Public Policy Committee (GPCC), the representative body of the six largest accounting firm networks, has issued a paper setting out the implementation requirements for IFRS 9.

The checklist for compliance covers a number of key issues from data quality to consistency of risk management practices and judgment, setting key performance indicators (KPIs) and forward modelling, which banks would be well advised to study.

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