The Bank Statement – Q4 2016

The Bank Statement – Q4 2016

This newsletter looks at IFRS and regulatory matters affecting accounting by banks.

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The Bank Statement is KPMG’s IFRS newsletter for the banking sector, updated each quarter.

The Bank Statement is KPMG’s quarterly banking newsletter.

It provides updates on IFRS developments that directly impact banks, and considers the potential accounting implications of regulatory requirements.

Download the latest issue to read about the developments in Q4 2016. Previous issues can be found on our IFRS Newsletters web page.

And visit our IFRS for Banks and IFRS – Financial instruments hot topics pages for more on these and other related developments.

Adjustments for the cost of regulatory capital

Portfolio valuation adjustments for derivative portfolios have become increasingly sophisticated over recent years. One of the newest and potentially largest adjustments is for the cost of regulatory capital – so-called KVA.


“The ultimate test of a KVA is whether it genuinely reflects the price at which a willing counterparty would enter into a transaction.”

Colin Martin, KPMG in the UK


We delve deeper into the detail of KVA and why it is more complex than it seems at first glance.

Regulatory treatment of accounting provisions

The Basel Committee on Banking Supervision recently published proposals on the interaction between IFRS 9 Financial Instruments and the Basel regulatory capital requirements for banks.

This article discusses the proposals and their possible implications.

Fair value disclosures

This quarter, our regular ‘How do you compare?’ article looks at disclosures of fair value for financial instruments that are measured at amortised cost.

IFRS 9 developments and IASB projects

There’s more news in our regular sections on IFRS 9 and the IASB’s activities, including confirmation of the EU’s endorsement of IFRS 9.

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