In a recent letter to all authorised deposit-taking institutions (ADIs), the Australian Prudential Regulation Authority (APRA) confirmed that ADIs will be required to apply AASB 9 Financial Instruments for annual periods beginning on or after 1 January 2018, and this will have a significant impact on the level of provisioning (impairment allowances) against loan balances in their financial statements.
The letter also confirms that for:
BDO has issued various publications and newsletter articles on AASB 9 and expected credit losses. Please refer to these for more information:
Alternatively, please contact your engagement partner for assistance.