By Steffen Müller
More than a third of banks surveyed by Big Four firm Deloitte have yet not started the implementation of IFRS 9 Financial Instruments, expected to come into force by 1 January 2018.
In November 2009 the International Accounting Standards Board (IASB) issued the standard in three phases to replace IAS 39, criticised by many for being a contributing factor behind the 2008 global financial crisis.
The three phases are classification and measurement of financial instruments; methodology of impairment and hedge accounting.
In November 2013, the IASB came closer to the completion of the IFRS 9 project introducing a chapter which ended the hedge accounting phase of the standard-setting process.
Initially intended to come into force on 1 January 2015, IFRS 9 effective date was postponed as the impairment phase is still pending, although proposals on this subject are expected soon.
Deloitte's fourth edition of its IFRS Banking Survey surveyed 54 banks globally and found they will require three years on average to implement IFRS 9, and some may be under pressure to meet the proposed 2018 deadline.
According to the survey, banks are awaiting the publication of the final standard before embarking on full scale implementation projects.
Most of the respondents said they were in the early stage of studying the quantitative and qualitative impact of the forthcoming accounting standard.
"Even a small change could have significant impact on our approach," a bank responded in the survey.
Some banks said clarity regarding the effective date and final standard is needed to facilitate the implementation of the standard.
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Deloitte
Survey: Fourth Global IFRS Bank Survey - Ready to Land