OTTAWA ─ March 10, 2016 ─ Office of the Superintendent of Financial Institutions
The Office of the Superintendent of Financial Institutions (OSFI) today released for comment a draft guideline on IFRS 9 Financial Instruments and Disclosures. The draft guideline provides guidance to Federally Regulated Entities (FREs) on the application of International Financial Reporting Standard 9 Financial Instruments (IFRS 9), issued by the International Accounting Standards Board (IASB) in July 2014. IFRS 9 replaces the International Accounting Standard 39 (IAS 39) and will be effective for annual periods beginning on or after January 1, 2018.
IFRS 9 is an improvement to the previous standard and has led OSFI to consider changes to its prudential expectations. The proposals contained in the draft guideline have been tailored to the size, nature and complexity of FREs.
OSFI’s draft guideline provides new guidance on expected credit losses and proposes that seven existing OSFI guidelines be revised or replaced and consolidated into a single IFRS 9 Financial Instruments and Disclosures Guideline.
- The draft guideline will consolidate the following seven OSFI guidelines:
- OSFI is inviting comments on the draft guideline, which it will consider in developing the final version of the guideline. The deadline for receipt of comments is May 6, 2016.
- A non-attributed summary of industry comments received, along with OSFI’s responses, will be posted on OSFI’s website when the final guideline is released later this year.
- In January 2015, OSFI issued an advisory outlining its expectation that Domestic Systemically Important Banks (D-SIBs) early adopt the new IFRS 9 accounting standard for their annual period beginning on November 1, 2017.
The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987, to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks.
OSFI – Public Affairs