Supervisory Roles in Loan Loss Provisioning in Countries Implementing IFRS

Author/Editor:

Ellen Gaston ; In W Song

Publication Date:

September 15, 2014

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Countries implementing International Financial Reporting Standards (IFRS) for loan loss provisioning by banks have been guided by two different approaches: International Accounting Standards (IAS) 39 and Basel standards. This paper discusses the different accounting and regulatory approaches in loan loss provisioning, and the challenges supervisors face when there are different perspectives and lack of guidance from IFRS. It suggests actions that supervisors can take to help banks meet regulatory and capital requirements and, at the same time, comply with accounting principles.

Series:

Working Paper No. 14/170

Subject:

English

Publication Date:

September 15, 2014

ISBN/ISSN:

9781484381120/1018-5941

Stock No:

WPIEA2014170

Format:

Paper

Pages:

41

Please address any questions about this title to publications@imf.org