Publication: Transition to IFRS 9: Practical Guidance for the Foreign Reserves of Central Banks
Date
2017-06-14
ISSN
Published
2017-06-14
Author(s)
Ha, Yunjung S.
Abstract
This paper provides practical guidance
to central banks on accounting practices for their foreign
reserves, in connection with the transition from
International Accounting Standard 39 Financial Instruments:
Recognition and Measurement (IAS 39) to International
Financial Reporting Standard 9 Financial Instruments (IFRS
9). The IFRS 9 preparation process can be summarized in
three steps: (1) business model assessment and cash flow
characteristic test for classification, (2) impairment, and
(3) transition and disclosure preparation. Relative to IAS
39, IFRS 9 is more principles-based, which requires
substantive management judgment, such as defining the
business model, assessing significance and impracticability
in applying exceptions, and determining expected credit loss
methodologies. This paper focuses on step 3, transition and
disclosure preparation, with an overview of the IFRS 9
transition requirements. A case illustration of a central
bank making the transition demonstrates how the process is
likely to impact a central bank’s foreign reserve portfolio.
Link to Data Set
Citation
“Ha, Yunjung S.. 2017. Transition to IFRS 9: Practical Guidance for the Foreign Reserves of Central Banks. © World Bank, Washington, DC. http://hdl.handle.net/10986/27471 License: CC BY 3.0 IGO.”