A new accounting standard for financial instruments may pose significant challenges for the banking sector especially when dealing with expected losses, said Daniele Nouy, supervisory chief, European Central Bank.
On Tuesday, Nouy delivered a speech at the European Confederation of Institutes of Internal Auditing in Paris, which discussed the implementation of the International Financial Reporting Standard 9 (IFRS) and highlighted the importance of collaboration between external auditors and internal functions at banks. The new rule is slated to go into effect in 2018.
