IFRS 9 Disclosure

Checklist
Including EDTF recommendations
and BCBS guidance

February 2017
Index

Introduction and instructions ...................................................................................................................... 2

Scoping and general considerations ............................................................................................................ 4
Classification and measurement .............................................................................................................. 4
Impairment ............................................................................................................................................ 6
Hedge accounting .................................................................................................................................. 6
Pre-transition disclosures ........................................................................................................................... 7
Impairment ............................................................................................................................................ 7
Permanent disclosures........................................................................................................................ 7
Temporary disclosures ...................................................................................................................... 10
Transition disclosures .............................................................................................................................. 14
Classification and measurement ............................................................................................................ 14
Impairment .......................................................................................................................................... 17
Post-transition disclosures ....................................................................................................................... 21
Classification and measurement ............................................................................................................ 21
Impairment .......................................................................................................................................... 26
Hedge accounting ................................................................................................................................ 38
Appendix 1 .............................................................................................................................................. 44
Appendix 2 .............................................................................................................................................. 45
Key contacts ........................................................................................................................................... 46

1
Introduction and instructions
In July 2014, the International Accounting Standards Board (IASB) issued IFRS 9 Financial Instruments
(IFRS 9), which replaces IAS 39 Financial Instruments: Recognition and Measurement (IAS 39). IFRS 9
introduces new rules for financial instruments on classification and measurement, impairment (with
a new expected credit loss impairment approach) and hedge accounting and is effective for annual
periods beginning on or after 1 January 2018, with early application permitted.

IFRS 9 does not introduce new disclosure requirements, although the IASB made a number of amendments
to other standards when it finalised IFRS 9, including amendments to IFRS 7 Financial Instruments: Disclosures
(IFRS 7), which introduce new disclosure requirements in connection with the introduction of IFRS 9.
These amendments, which are described in Appendix C of IFRS 9, have been incorporated into the text
of the relevant Standards (e.g., IFRS 7). This checklist addresses these new disclosure requirements only
and does not replace a full IFRS checklist to be used to assist in the preparation of a full set of financial
statements in accordance with International Financial Reporting Standards (IFRS).

In addition to the disclosure requirements of IFRS, this checklist aims to assist users in addressing guidance
and recommendations issued by other bodies and organisations that does not constitute authoritative
guidance, as further described below. It should be noted that such guidance and recommendations are
specific to banks, although other users may consider assessing whether some (or all) of them could be
addressed as part of their disclosures.

To promote high quality implementation of IFRS 9, the Basel Committee on Banking Supervision (BCBS)
issued, in December 2015, Guidance on credit risk and accounting for expected credit losses (G-CRAECL
or the Basel Guidance), applicable exclusively to lending exposures. The Basel Committee has significantly
heightened the supervisory expectations that “internationally active banks” will deliver high-quality
implementation of the expected credit loss (ECL) accounting framework, including the related guidance
on disclosures.

Additionally, the Financial Stability Board (FSB) requested the Enhanced Disclosure Task Force1 (EDTF) to
consider the disclosures that may be useful to help the market understand the upcoming changes resulting
from the use of ECL approaches (whether under US Generally Accepted Accounting Principles (US GAAP) or
IFRS) and to promote consistency and comparability. Following such request, in December 2015, the EDTF
issued a report on the Impact of Expected Credit Loss Approaches on Bank Risk Disclosures (the EDTF ECL
Guidance2).

The EDTF has developed its recommendations with large international banks in mind. However,
the recommendations and considerations should be equally applicable to other banks that actively
access the major public equity or debt markets. Some of the recommendations, therefore, are likely
not to be applicable, or to be less relevant, to smaller banks and some subsidiaries of listed banks.
As such, the EDTF would expect such entities to adopt only those aspects of the recommendations that
are relevant to them. The EDTF also states that, although its recommendations have not specifically been
developed for other types of financial services organisations, such as insurance companies, the considerations
contained therein may provide some appropriate guidance.

It should be noted that, although EDTF is not a standard setter and its recommendations are not mandatory,
regulators (including those in the UK, Switzerland, Italy, Spain and the Netherlands) have strongly encouraged
the implementation of some or all of the recommendations.3 Ultimately, users will have to exercise judgement
to establish, based on specific facts and circumstances, the extent to which each recommendation is relevant
and applicable to them.

This checklist is designed to assist you in the preparation of disclosures in accordance with IFRS 7 (as amended
in accordance with the introduction of IFRS 9), the EDTF recommendations and the Basel Guidance.

If a disclosure is required by IFRS 7 and the same, or a comparable, disclosure requirement is included in the
EDTF recommendations and/or the Basel guidance, the checklist indicates that, by complying with the IFRS 7

1
The Enhanced Disclosure Task Force (EDTF) was established by the Financial Stability Board (FSB) in May 2012. The EDTF
aims to improve the quality, comparability and transparency of risk disclosures by bringing together a broad spectrum of
private sector participants including banks, investors, analysts and auditors.
2
“Impact of expected credit loss approaches on bank risk disclosures”, Report of the Enhanced Disclosure Task Force, 30
November 2015.
3
See EDTF 2014 Progress Report, 5 September 2014, page 6.

2
disclosure requirement(s), users also comply with the relevant (part of the) EDTF recommendation(s) and/or
the Basel Guidance which addresses the same (or comparable) requirement. In such case, the wording of the
IFRS 7 disclosure requirement (or paraphrase of it, in some instances) is included in the checklist and the EDTF
recommendation and/or Basel Guidance wording is not included.

It should be noted that an IFRS 7 disclosure requirement may relate to one or more EDTF recommendations
and/or disclosures included in the Basel guidance and vice versa. It should also be noted that the allocation
of the IFRS 7 disclosures to the EDTF recommendations and the Basel Guidance (and vice versa) represents
purely the view of EY and does not reflect any view of the IASB, the FASB, the FSB, the EDTF, the Basel
Committee and/or any other entity or organisation.

The checklist is applicable to annual financial statements and interim financial statements for annual periods
beginning on or after 1 January 2016 and does not apply to condensed interim financial statements prepared
in accordance with IAS 34 Interim Financial Reporting.

The checklist does not explain other accounting requirements, nor does it reflect the requirements of IFRS
for Small and Medium-Sized Entities (SMEs) or the IFRS Practice Statement for Management Commentary.

The checklist has been prepared assuming that the user will adopt IFRS 9 in 2018, but it may also be used
by users adopting IFRS 9 early. Noted that the EDTF disclosures in the “Pre-transition disclosures” section
assume an adoption date as of 1 January 2018.

In some instances, to simplify the use of the checklist, disclosure requirements have been summarised and/or
paraphrased. In these instances, reference should be made to the IFRS/EDTF Report/Basel Guidance for full
details.

Materiality and judgement

The checklist does not address the appropriateness or clarity of the disclosures, for instance, the format
and the structure of the notes and the tailoring of the information. These are matters of judgement, based
on the individual facts and circumstances of the entity.

IFRS 7 sets out the minimum disclosure requirements. However, the minimum disclosure requirements
only apply to the extent that the transaction, event or item to which the disclosure requirement applies, is
material to the entity, as clarified in paragraph 31 of IAS 1 Presentation of Financial Statements. Therefore,
in applying the checklist, the user should carefully assess the materiality of the information. The inclusion
of disclosures of immaterial information may, in some circumstances, reduce the relevance of the financial
statements. In such circumstances, it is appropriate to exclude the information.

3
Scoping and general considerations
The amendments to the IFRS 7 disclosure requirements made in connection with IFRS 9 (as described in
Appendix C to IFRS 9) need not be applied to comparative information provided for periods before the date of
initial application of IFRS 9 (IFRS 7.44Z).

Classification and measurement

The table below sets out the types of financial instruments that are scoped into the IFRS 7 disclosure
requirements relevant to the classification and measurement of financial instruments.

IFRS
Reference Description

IFRS 7.3 IFRS 7 must be applied by all entities to all types of financial instruments, except:
a. Those interests in subsidiaries, associates or joint ventures that are accounted for in accordance
with IFRS 10 Consolidated Financial Statements, IAS 27 Separate Financial Statements or
IAS 28 Investments in Associates and Joint Ventures. However, in some cases, IFRS 10, IAS 27
or IAS 28 require or permit an entity to account for an interest in a subsidiary, associate or joint
venture using IFRS 9. In those cases, entities shall apply the requirements of this IFRS. Entities
must also apply this IFRS to all derivatives linked to interests in subsidiaries, associates or joint
ventures unless the derivative meets the definition of an equity instrument in IAS 32
b. Insurance contracts as defined in IFRS 4 Insurance Contracts are scoped out of IFRS 7 and IFRS 9.
However, they apply to derivatives that are embedded in insurance contracts if IFRS 9 requires the
entity to account for them separately. Moreover, an issuer must apply IFRS 7 to financial guarantee
contracts if the issuer applies IFRS 9 in recognising and measuring the contracts, but must apply
IFRS 4 if it elects, in accordance with paragraph 4(d) of IFRS 4, to apply IFRS 4 in recognising and
measuring them
c. Also excluded from scope are financial instruments, contracts and obligations under share-based
payment transactions to which IFRS 2 Share-based Payment applies, except that this IFRS applies
to contracts within the scope of IFRS 9

IFRS 7.4 IFRS 7 applies to recognised and unrecognised financial instruments. Recognised financial instruments
include financial assets and financial liabilities that are within the scope of IFRS 9. Unrecognised financial
instruments include some financial instruments that, although outside the scope of IFRS 9, are within
the scope of this IFRS (e.g., some loan commitments).

IFRS 7.5 IFRS 7 applies to contracts to buy or sell non-financial items that are within the scope of IFRS 9.

IFRS 7.B1 Paragraph 6 of IFRS 7 requires an entity to group financial instruments into classes that are appropriate
to the nature of the information disclosed and that take into account the characteristics of those financial
instruments. The classes described in paragraph 6 are determined by the entity and are, thus, distinct
from the categories of financial instruments specified in IFRS 9 (which determine how financial
instruments are measured and where changes in fair value are recognised).

4
IFRS 7 requires disclosure of the measurement basis (or bases) used in preparing the financial statements and
the other accounting policies used that are relevant to an understanding of the financial statements. For
financial instruments, such disclosure requirements are set out in the table below.

Disclosure made
IFRS EDTF/BCBS
Item # Reference Reference Description Yes No N/A
1 Does the entity disclose measurement basis (or bases) used
in preparing the financial statements
☐ ☐ ☐
Does the entity disclose the accounting policies used that are
relevant to an understanding of the financial statements.
Such disclosures may include:
► For financial liabilities designated as at fair value through
profit or loss:
► The nature of the financial liabilities the entity has ☐ ☐ ☐
designated as at fair value through profit or loss
► The criteria for so designating such financial liabilities ☐ ☐ ☐
on initial recognition
► How the entity has satisfied the conditions in ☐ ☐ ☐
paragraph 4.2.2 of IFRS 9 for such designation

IFRS 7.B5 - ► For financial assets designated as measured at fair value

through profit or loss:
► The nature of the financial assets the entity has
designated as measured at fair value through profit ☐ ☐ ☐
or loss
► How the entity has satisfied the criteria in paragraph ☐ ☐ ☐
4.1.5 of IFRS 9 for such designation
► Whether regular way purchases and sales of financial ☐ ☐ ☐
assets are accounted for at trade date or at settlement
date (see paragraph 3.1.2 of IFRS 9)
► How net gains or net losses on each category of financial ☐ ☐ ☐
instrument are determined (see paragraph 20(a) of
IFRS 7), for example, whether the net gains or net
losses on items at fair value through profit or loss
include interest or dividend income

IFRS An entity may, at initial recognition, irrevocably designate a

9.4.2.2 financial asset or financial liability as measured at fair value
through profit or loss if doing so eliminates or significantly
reduces an “accounting mismatch” that would otherwise
arise from measuring assets, or liabilities or recognising the
gains and losses on them on different bases or if designation
will result in more relevant information.
“A regular way purchase or sale” of financial assets must be
recognised and derecognised, as applicable, using trade date
IFRS
accounting or settlement date accounting.
9.3.1.2

5
Impairment
The table below sets out the various types of financial instruments that are scoped into the disclosure
requirements relevant to the impairment of financial instruments.

IFRS EDTF/BCBS
Reference Reference Description

IFRS 7.5A - The credit risk disclosure requirements in paragraph 35A–35N4 of IFRS 7 apply to those
rights that IFRS 15 Revenue from Contracts with Customers specifies are accounted
for in accordance with IFRS 9 for the purposes of recognising impairment gains or
losses. Any reference to financial assets or financial instruments in these paragraphs
must include those rights unless otherwise specified.

IFRS 7.35A - An entity must apply the disclosure requirements in paragraphs 35F–35N of IFRS 7
to financial instruments to which the impairment requirements in IFRS 9 are applied.
However:
a. For trade receivables, contract assets and lease receivables, paragraph 35J applies
to those trade receivables, contract assets or lease receivables on which lifetime
ECL are recognised in accordance with paragraph 5.5.15 of IFRS 9, if those financial
assets are modified while more than 30 days past due (refer to the note below)
b. Paragraph 35K(b) of IFRS 7 does not apply to lease receivables

IFRS An entity must always measure the loss allowance at an amount equal to lifetime ECL
9.5.5.15 for trade receivables or contract assets that do not contain a significant financing
component. For all lease receivables and any trade receivables and contract assets that
do contain a significant financing component the entity may choose, as its accounting
policy, to measure the loss allowance at an amount equal to lifetime ECL.

IFRS 7.35C - An entity need not duplicate information that is already presented elsewhere, provided
that the information is incorporated by cross-reference from the financial statements to
other statements, such as a management commentary or risk report that is available to
users of the financial statements on the same terms as the financial statements and at
the same time. Without the information incorporated by cross-reference, the financial
statements are incomplete.

IFRS 7.35D BCBS To meet the objectives in paragraph 35B of IFRS 7, an entity must (except as otherwise
Principle specified) consider how much detail to disclose, how much emphasis to place on
8.75 and 82 different aspects of the disclosure requirements, the appropriate level of aggregation or
disaggregation, and whether users of financial statements need additional explanations
to evaluate the quantitative information disclosed.

IFRS 7.35E - If the disclosures provided in accordance with paragraphs 35F–35N of IFRS 7 are
insufficient to meet the objectives in paragraph 35B, an entity must disclose additional
information that is necessary to meet those objectives.

Hedge accounting
Refer to pages 38-43 for the hedge accounting disclosures.

4
Refer to the subsequent sections of the disclosure checklist for the details of the credit risk disclosure requirements.

6
Pre-transition disclosures
Impairment
The EDTF has extensively discussed the timing of providing disclosures in the years prior to adopting an ECL
approach and believes that a gradual and phased approach would be most useful to users. This means that:

a. The initial timing of information being provided, whether qualitative or quantitative, should be weighed
against reliability

b. The nature and extent of disclosures will develop over time, i.e., the granularity and specificity to
an entity of the explanations provided will increase as the date of adoption of an ECL approach gets
nearer. The EDTF indicates that the initial focus should be on qualitative disclosures. The quantitative
disclosures should be added as soon as they can be practicably determined and are reliable but, at
the latest, in the 2017 annual reports.

The EDTF encouraged banks to take these considerations into account for annual reports for 2015
and subsequent years and has provided guidance on the chronology of implementation. Nevertheless,
a revised “calendar of EDTF disclosure implementation” is provided below, based on industry insights.

In the pre-transition period, banks should clarify that disclosures anticipating the impact of ECL before
the requirements are adopted are an indicative application of the new methodology to current portfolios
rather than an estimate of the future transition impact at the reporting date, based on the information
currently available, including current economic conditions. Therefore, the disclosures should be accompanied
by meaningful cautionary statements identifying important factors that could cause actual results at transition
to differ materially from those disclosed.

Permanent disclosures
Permanent disclosures are related to the period before and upon transition to IFRS 9 and should continue to
be made following adoption of IFRS 9 (and, therefore, are repeated in the sections “Transition disclosures –
Impairment” and “Post-transition disclosures – Impairment” of this checklist).

Disclosure made
IFRS EDTF/BCBS Expected
Item # Reference Reference Description Yes No N/A by5

1 - EDTF 2 Does the entity describe how it interprets and

applies key concepts within the ECL approach,
including:
► Definition of default
► Comparison with the definition of
default used for internal credit risk ☐ ☐ ☐
management purposes and the
regulatory definition 2016-
► Description of whether the 90-day 2017
rebuttable presumption is intended
☐ ☐ ☐
to be used and in what circumstances
► Credit impaired
► How the concept of “credit-impaired ☐ ☐ ☐
exposures” relates to the definition
of default used under IFRS 9

5
Expected date by which the disclosure should be provided, based on EY’s view of the EDTF timeline included in the “EDTF
ECL Guidance”, assuming a 2018 adoption date. When the years 2016-2017 are indicated, this means that granularity of
disclosures will develop over time, i.e., the level of detail will be lower in the first year (2016) and higher in the following
year (2017). Also, disclosures are expected to be mostly qualitative in 2016, whereas quantitative disclosures are generally
expected in 2017.

7
 Disclosure made
IFRS EDTF/BCBS Expected
Item # Reference Reference Description Yes No N/A by5
► Significant increase in credit risk
► How a significant increase in credit
risk (and its reversal) is determined,
implemented, distinguishing between ☐ ☐ ☐
individual assessments, portfolio
assessments, and the application of
any temporary collective adjustments
► Description of the risk indicators
applied, including the interpretation of
“significant increase in credit risk” at ☐ ☐ ☐
an appropriate level of segmentation
and granularity
► Disclosure of the entity’s policies and
procedures for incorporating forward-
looking information to assess
☐ ☐ ☐
significant deterioration and the type
of information used
► When a portfolio assessment is applied 2016-
to identify significant increase in credit 2017
risk, explanation of how the entity will ☐ ☐ ☐
identify exposures to be moved to
Stage 2
► Credit risk at initial recognition
► For exposures where it may be difficult
to determine credit risk at initial
recognition (such as current accounts, ☐ ☐ ☐
revolving facilities and renewable
exposures), description of the
approach to determining significant
increase in credit risk
► Modifications
► Policies for circumstances that lead to
de-recognition of loans as a result of
modification of contractual terms and ☐ ☐ ☐
recognition of new loans
► How forbearance is treated under
IFRS 9 including, where such ☐ ☐ ☐
exposures are transferred to Stage 2,
the procedures for transfer of
exposures back to Stage 1, including
any specific criteria defined
► Circumstances in which forborne
exposures are considered credit-
impaired and the criteria used to
☐ ☐ ☐
assess whether they are no longer
credit-impaired
► When specific regulatory
pronouncements exist around
☐ ☐ ☐
modifications (e.g., BCBS or European
Banking Authority Guidance), how
these are reflected in the IFRS 9
approach
► For types of contracts where a specific
interpretation is required (such as current
account (overdraft) or revolving credit ☐ ☐ ☐
facilities), the time horizon over which ECL
is measured

8
 Disclosure made
IFRS EDTF/BCBS Expected
Item # Reference Reference Description Yes No N/A by5
Does the entity explain the credit loss
modelling techniques developed to implement
the ECL framework, including:
► Techniques for determining credit risk
measures (PD, LGD, EAD, Credit
Conversion Factors6) used in ECL ☐ ☐ ☐
calculations, where relevant. This includes
types of input used, most relevant
assumptions and judgements made, and
uncertainty involved, where applicable
► Forward-looking information
2016-
► Type of forward looking information ☐ ☐ ☐ 2017
used and how the impact on ECL is
determined
► Leveraging existing sources
► For portfolios where advanced Basel
models are used as starting point,
the extent of reliance on such models
☐ ☐ ☐
and how the methodology is adapted
to comply with IFRS 9
► For portfolios not based on Basel
models, the techniques developed
to arrive at the ECL for accounting
☐ ☐ ☐
purposes
► Additional adjustments
► The entity’s use and nature of material
additional adjustments used to capture ☐ ☐ ☐
factors not specifically embedded in
the models used

2 - EDTF 5 Does the entity disclose how the risk

management organisation, processes
and key functions have been organised to
implement the ECL approach, including:
► How credit practices and policies form
the basis for implementation of ECL ☐ ☐ ☐
requirements 2016 -
► The impact of the new approach on 2017
existing processes and changes required
☐ ☐ ☐
to governance practices and processes
3 - EDTF 26 Does the entity provide a disclosure of vintage
analysis, where it aids understanding of the
credit risk exposures, particularly when there
is a lending portfolio with heightened credit ☐ ☐ ☐ 2017
risk, and the period in which it was originated
has a bearing on the extent of that credit risk
and the resulting ECL
4 - EDTF 27 Does the entity define non-performing and
credit-impaired loans, including when financial 2016-
assets are no longer considered to be non- ☐ ☐ ☐
2017
performing or credit-impaired

6
Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD).

9
Temporary disclosures
The following disclosures relate to both the period before and upon transition to IFRS 9 (and therefore are also
included in the section “Transition disclosures – Impairment” of this checklist) and are not required following
adoption of IFRS 9.

Disclosure made
IFRS EDTF/BCBS Expected
Item # Description Yes No N/A
Reference Reference by

1 - EDTF 3 Does the entity provide a comparison of

concepts applied and modelling techniques
used, between the current impairment
approach and the ECL approach, including:
► A description of the differences between
collective assessment approach and ECL ☐ ☐ ☐
approach
► An explanation of how individual triggers
and consequent loss measurement under ☐ ☐ ☐
IAS 39 compare with the treatment of
“credit-impaired exposures” under IFRS 9
► A disclosure of any changes in the scope
of financial assets subject to impairment ☐ ☐ ☐
requirements as a result of classification
and measurement changes
► A disclosure of changes in the timing of ☐ ☐ ☐
recognition losses
► A disclosure of the impact of forward-
looking information, including any
anticipated increase in volatility in
☐ ☐ ☐
provisions and earnings as compared
to the incurred loss approach
► An indication of portfolios significantly
affected by the transition to IFRS 9,
including the key characteristics that
could affect ECL, absolute level of credit ☐ ☐ ☐
risk of portfolios, and how any wider
development expected in the entity’s
strategy or portfolio composition might
affect the expected impact of IFRS 9
2016 -
► A description of techniques that will be
used for the measurement of ECL under
☐ ☐ ☐ 2017
IFRS 9
► When entities use aspects of EL based
measures to comply with existing
standards, how these operate and what
☐ ☐ ☐
changes to make to comply with ECL
requirements
► A qualitative discussion on expected
effects of an ECL approach on the
quantum of credit losses as compared
☐ ☐ ☐
to allowances determined under an
incurred loss approach

10
 Disclosure made
IFRS EDTF/BCBS Expected
Item # Description Yes No N/A
Reference Reference by
2 - EDTF 4 Once the applicable rules are finalised, does
the entity outline plans to meet each new key
regulatory ratio (i.e., how the business will be
run differently) in order to meet each new key ☐ ☐ ☐
regulatory ratio e.g., the net stable funding
ratio, liquidity coverage ratio and leverage 2016 -
ratio and, once the applicable rules are in 2017
force, provide such key ratios.
Does the entity disclose the quantitative
impact that the revised accounting allowance ☐ ☐ ☐
for credit losses may have on regulatory
capital (under current regulatory rules)

- - Under the current regulatory framework,

increased credit losses affect capital in
different ways depending on the approach.
Under the internal ratings-based approach,
where the balance of allowances determined
for accounting purposes is less than the one-
year regulatory expected loss amount,
the difference is taken as a deduction from
Common Equity Tier 1 capital. Where the
balance of accounting loan impairment
allowances is greater than the EL, the surplus
over the EL is allowable to count towards
capital resources as a Tier 2 item, subject
to a ceiling.

3 - EDTF 5 Does the entity describe the intended

implementation strategy of IFRS 9 including:
► The current timeline for the ☐ ☐ ☐
implementation
► How implementation is being governed,
including:
► Description of main implementation ☐ ☐ ☐ 2016
steps

► Methodologies to be determined ☐ ☐ ☐
► Models to be built and tested ☐ ☐ ☐
► Business and functions involved in
the implementation efforts
☐ ☐ ☐
4 - EDTF 8 Does the entity describe the relationship,
if any, between stress testing programs
and implementation of the ECL accounting
requirements including any links between ☐ ☐ ☐ 2016
the stress testing approach, assumptions,
processes and the implementation of
an ECL methodology

11
 Disclosure made
IFRS EDTF/BCBS Expected
Item # Description Yes No N/A
Reference Reference by
5 - EDTF 12 Does the entity qualitatively and quantitatively
discuss its capital planning, including:
► An explanation of how ECL requirements
are anticipated to have an impact on ☐ ☐ ☐
capital planning
► Any strategic changes expected by ☐ ☐ ☐
management to the extent the impact
is material (in particular, in meeting 2016 -
capital adequacy requirements) 2017
► For unclear or not yet fully determined
☐ ☐ ☐
regulatory requirements, the effects of
such uncertainty
As the regulatory requirements become
clearer and entity’s implementation efforts
progress, this is an area where disclosure is
expected to develop over the transition period

EDTF 26 An entity should consider whether existing

segmentation for credit risk disclosure
purposes is sufficiently granular to
appropriately understand credit risk under
the ECL approach. On initial application of
IFRS 9, an entity should revisit it existing
disclosure segmentation and note whether
it continues to be appropriate.
On an ongoing basis, disclosures could break
down portfolios by geography, line of business,
product, credit quality and vintage. As specific
risks emerge, an entity should consider
providing separate disclosures segmented
for the affected lending and highlighting
relevant risks. As risks diminishes, such
disclosures are removed.

6 IAS 8 EDTF 26 Once practical and when disclosures would

be reliable (reasonably estimable), does
the entity provide a quantitative impact
on financial statements of applying the ECL
approach, with sufficient granularity to allow ☐ ☐ ☐
users to understand how the adoption of the
ECL approach contributes to a change in the 2016-
allowance balance compared to the previous 2017
incurred loss approach and how the impact
varies across the entity’s portfolios
Where quantification is not yet possible, does
the entity indicate when they is expected to ☐ ☐ ☒
be able to provide initial impact assessments
based on current portfolios

12
 Disclosure made
IFRS EDTF/BCBS Expected
Item # Description Yes No N/A
Reference Reference by

- EDTF 26 The quantitative disclosures of the impact

on financial statements of applying the
ECL approach should be added as soon
as practicable and reliable impacts can be
determined and, at the latest, in 2017 annual
reports. The extent and nature of quantitative
disclosures provided will be dependent
upon progress and milestones reached
in the entity’s implementation project.
The assessment can only be based on current
portfolios and information. Businesses,
portfolios and economic conditions will
continue to evolve but such changes cannot
be fully anticipated prior to transition. It
should therefore be made clear that any
quantitative assessment disclosed ahead
of transition is not an estimate of the future
transition impact but rather an indicative
application of the new methodology to current
portfolios based on current circumstances
and available forecasts as at a particular date.
The reliability of the information should be
assessed and understood on this basis.

13
Transition disclosures
An entity must apply IFRS 9 for annual periods beginning on or after 1 January 2018, but earlier application is
permitted.

Entities will consider this section exclusively in the year of initial application. Note that this section includes
also the pre-transition disclosures on impairment which, as per the EDTF guidance, are applicable both in pre-
transition and on transition.

Note that in the year of initial application users must complete both the transition disclosures and post-
transition disclosures in this checklist.

Year of initial application - Exemption

In accordance with paragraph 7.1.1 and 7.2.2 of IFRS 9, depending on the entity’s chosen approach
to applying IFRS 9, the transition can involve more than one date of initial application i.e., for annual
periods beginning before 1 January 2018, an entity may elect to early apply only the requirements for
the presentation of gains and losses on financial liabilities designated as at fair value through profit or
loss without applying the other requirements of IFRS 7. Therefore, the paragraphs outlined in this section
may result in disclosure on more than one date of initial application.

Classification and measurement

Disclosure made
IFRS
Item # Reference Description Yes No N/A

1 IFRS 7.42I In the reporting period that includes the date of initial application
of IFRS 9, does the entity disclose the following information for each
class of financial assets and financial liabilities as at the date of initial
application:
a. The original measurement category and carrying amount
determined in accordance with IAS 39 or in accordance with ☐ ☐ ☐
a previous version of IFRS 9
b. The new measurement category and carrying amount determined
in accordance with IFRS 9
☐ ☐ ☐
c. The amount of any financial assets and financial liabilities in the
statement of financial position that were previously designated as
measured at fair value through profit or loss, but are no longer so ☐ ☐ ☐
designated, distinguishing between those that IFRS 9 requires an
entity to reclassify and those that an entity elects to reclassify at
the date of initial application

2 IFRS In the reporting period that includes the date of initial application of
7.42J IFRS 9, does the entity disclose qualitative information to enable users
to understand:
a. How it applied the classification requirements in IFRS 9 to those
financial assets whose classification has changed as a result of ☐ ☐ ☐
applying IFRS 9

b. The reasons for any designation or de-designation of financial assets

or financial liabilities as measured at fair value through profit or loss ☐ ☐ ☐
at the date of initial application

3 IFRS Does the entity disclose the changes in the classifications of financial
7.42L assets and financial liabilities as at the date of initial application of
IFRS 9, showing separately:
a. The changes in the carrying amounts on the basis of their
measurement categories in accordance with IAS 39 (i.e., not
resulting from a change in measurement attribute on transition
to IFRS 9). This will include the effect of the new impairment ☐ ☐ ☐
requirements
b. The changes in the carrying amounts arising from a change in
measurement attribute on transition to IFRS 9
☐ ☐ ☐

14
 Disclosure made
IFRS
Item # Reference Description Yes No N/A
4 IFRS Does the entity disclose the following for financial assets and financial
7.42M liabilities that have been reclassified so that they are measured at
amortised cost and, in the case of financial assets, that have been
reclassified out of fair value through profit or loss so that they are
measured at fair value through other comprehensive income, as
a result of the transition to IFRS 9:
a. The fair value of the financial assets or financial liabilities at ☐ ☐ ☐
the end of the reporting period

b. The fair value gain or loss that would have been recognised in profit
or loss or other comprehensive income during the reporting period if
☐ ☐ ☐
the financial assets or financial liabilities had not been reclassified7

5 IFRS Does the entity disclose the following for financial assets and financial
7.42N liabilities that have been reclassified out of the fair value through profit
or loss category as a result of the transition to IFRS 9:
a. The effective interest rate determined on the date of initial ☐ ☐ ☐
application
b. The interest revenue or expense recognised ☐ ☐ ☐
IFRS If an entity treats the fair value of a financial asset or a financial liability
7.42N as the new gross carrying amount at the date of initial application (see
paragraph 7.2.11 of IFRS 9), the disclosures in this paragraph must
be made for each reporting period until derecognition. (Note that this
applies only when it is impracticable, as defined in IAS 8, for an entity
to apply retrospectively the effective interest method, which, in our
view, should be limited to rare circumstances).
Otherwise, the disclosures in this paragraph need not be made after
the annual reporting period in which the entity initially applies the
classification and measurement requirements for financial assets in
IFRS 9.

6 IFRS When an entity presents the disclosures set out in paragraphs

7.42O IFRS7.42L-42N (see items 3-5 above), do those disclosures permit
a reconciliation between: ☐ ☐ ☐
a. The measurement categories presented in accordance with IAS 39
and IFRS 9: and
b. The class of financial instrument as at the date of initial application

IFRS In the reporting period that includes the date of initial application of
7.42Q IFRS 9, an entity is not required to disclose the line item amounts that
would have been reported in accordance with the classification and
measurement requirements (which includes the requirements related
to amortised cost measurement of financial assets and impairment in
Sections 5.4 and 5.5 of IFRS 9) of:
a. IFRS 9 for prior periods
b. IAS 39 for the current period

7
Note that, in order to provide these disclosures, users may need to keep some of the systems used for IAS 39 running in
2018.

15
 Disclosure made
IFRS
Item # Reference Description Yes No N/A
7 IFRS In accordance with paragraph 7.2.4 of IFRS 9, if it is impracticable (as
7.42R defined in IAS 8) at the date of initial application of IFRS 9 for an entity
to assess a modified time value of money element, based on the facts
and circumstances that existed at the initial recognition of the financial
asset, it must assess the contractual cash flow characteristics of that
financial asset, based on the facts and circumstances that existed at
the initial recognition of the financial asset without taking into account
the requirements related to the modification of the time value of money
element in paragraphs B4.1.9B–B4.1.9D of IFRS 9 (modified time value
of money element).
Does the entity disclose the carrying amount, at the reporting date,
of financial assets whose contractual cash flow characteristics have
been assessed based on the facts and circumstances that existed at ☐ ☐ ☐
the initial recognition of the financial asset without taking into account
the requirements related to the modification of the time value of money
element in paragraphs B4.1.9B–B4.1.9D of IFRS 9, until those financial
assets are derecognised
8 IFRS In accordance with paragraph 7.2.5 of IFRS 9, if it is impracticable (as
7.42S defined in IAS 8), at the date of initial application for an entity to assess
whether the fair value of a prepayment feature was insignificant based
on the facts and circumstances that existed at the initial recognition
of the financial asset, an entity must assess the contractual cash
flow characteristics of that financial asset based on the facts and
circumstances that existed at the initial recognition of the financial
asset without taking into account the exception for prepayment
features in paragraph B4.1.12 of IFRS 9.
Does the entity disclose the carrying amount at the reporting date
of financial assets whose contractual cash flow characteristics have
been assessed based on the facts and circumstances that existed at ☐ ☐ ☐
the initial recognition of the financial asset without taking into account
the exception for prepayment features in paragraph B4.1.12 of IFRS 9,
until those financial assets are derecognised

9 IFRS In accordance with paragraph 7.1.2 of IFRS 9, for annual reporting

7.44ZA periods prior to 1 January 2018, an entity may elect to early apply
only the requirements for the presentation of gains and losses on
financial liabilities designated as at fair value through profit or loss
without applying the other requirements in IFRS 9.
If an entity elects to apply only those paragraphs of IFRS 9, does the
entity disclose that fact and provide, on an ongoing basis, the related
disclosures set out in paragraphs 10–11 of this IFRS (as amended by ☐ ☐ ☐
IFRS 9 (2010)8

8
Refer to the disclosure requirements of paragraphs 10 and 11 of IFRS 7 in the section on Financial assets or financial
liabilities at fair value through profit or loss.

16
Impairment
IFRS EDTF/BCBS
Item # Reference Reference Description Yes No N/A

1 - EDTF 2 Does the entity describe how it interprets and applies key
concepts within the ECL approach, including:
► Definition of default:
► A comparison with the definition of default used
for internal credit risk management purposes and
regulatory definition ☐ ☐ ☐
► A description of whether the 90 day rebuttable
presumption is intended to be used and in what ☐ ☐ ☐
circumstances
► Credit impaired
► An explanation of how the concept of “credit-
impaired exposures” relates to the definition ☐ ☐ ☐
of default used under IFRS 9
► Significant increase in credit risk
► A description of how a significant increase in
credit risk (and its reversal) is determined,
implemented, distinguished between individual ☐ ☐ ☐
assessments, portfolio assessments, and the
application of any temporary collective
adjustments
► A description of the risk indicators applied and
the interpretation of “significant increase in credit
risk” at an appropriate level of segmentation and ☐ ☐ ☐
granularity

► A description of the entity’s policies and

procedures for incorporating forward-looking
information to assess significant deterioration ☐ ☐ ☐
and the type of information used
► A disclosure of when a portfolio assessment
is applied to identify a significant increase in
credit risk, explaining how the entity will identify ☐ ☐ ☐
exposures to be moved to Stage 2
► Credit risk at initial recognition
► For exposures where it may be difficult to
determine credit risk at initial recognition
(such as current accounts, revolving facilities
and renewable exposures), a description of
the approach to determining significant increase ☐ ☐ ☐
in credit risk
► Modifications
► A description of policies for circumstances ☐ ☐ ☐
that lead to de-recognition of loans as a result
of modification of contractual terms and
recognition of new loans
► An explanation of how forbearance situations
are treated under IFRS 9 including, where ☐ ☐ ☐
such exposures are transferred to Stage 2,
the procedures for transfer of exposures back
to Stage 1, including any specific criteria defined
► An explanation of circumstances in which forborne
exposures are considered credit-impaired (i.e., ☐ ☐ ☐
Stage 3) and the criteria used to assess whether
they are no longer credit-impaired

17
 IFRS EDTF/BCBS
Item # Reference Reference Description Yes No N/A

► When specific regulatory pronouncements exist

around modifications (e.g., BCBS or European ☐ ☐ ☐
Banking Authority Guidance), an explanation of
how these are reflected in the IFRS 9 approach
► For types of contracts where a specific interpretation
is required (such as current account (overdraft) or ☐ ☐ ☐
revolving credit facilities), a disclosure of the time
horizon over which ECL is measured
Does the entity describe the credit loss modelling
techniques developed to implement the ECL framework,
including:
► A description of the techniques for determining credit
risk measures (PD, LGD, EAD, Credit Conversion
Factors9) used in ECL calculations, where relevant.
This includes types of input used, most relevant ☐ ☐ ☐
assumptions and judgments made, and uncertainty
involved, where applicable
► Forward-looking information
► A description of the type of forward-looking
information used and how the impact on ECL ☐ ☐ ☐
is determined
► Leveraging existing sources
► For portfolios where advanced Basel models
are used as starting point, an explanation of
the extent of reliance on such models and how ☐ ☐ ☐
the methodology is adapted to comply with IFRS 9
► For portfolios not based on Basel models, ☐ ☐ ☐
a description of the techniques developed
to arrive at the ECL for accounting purposes
► Additional adjustments
► An explanation of the use and nature of material
additional adjustments used to capture factors ☐ ☐ ☐
not specifically embedded in the models used

2 - EDTF 3 Does the entity provide a comparison of concepts applied

and modelling techniques used, between the current
impairment approach and the ECL approach, including:
► A description of the differences between collective ☐ ☐ ☐
assessment approach and ECL approach
► An explanation of how individual triggers and
consequent loss measurement under IAS 39 compare
with the treatment of “credit impaired exposure” (i.e., ☐ ☐ ☐
Stage 3) under IFRS 9
► A disclosure of any changes in the scope of financial
assets subject to impairment requirements as a result ☐ ☐ ☐
of classification and measurement changes
► A disclosure of changes in the timing of recognition ☐ ☐ ☐
~of losses
► A disclosure of the impact of forward-looking
information, including any anticipated increase in
volatility in provisions and earnings as compared ☐ ☐ ☐
to the incurred loss approach

9
Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD).

18
 IFRS EDTF/BCBS
Item # Reference Reference Description Yes No N/A
► An indication of portfolios significantly affected by
transition to IFRS 9, including disclosure of the key
characteristics that affect ECL, absolute level of credit
risk of portfolios, and how any wider development in
the entity’s strategy or portfolio composition affect ☐ ☐ ☐
the impact of IFRS 9
► A description of techniques that will be used for ☐ ☐ ☐
the measurement of ECL under IFRS 9
► When entities use aspects of expected loss (EL)
based measures to comply with existing standards,
a disclosure of how these operate and what changes ☐ ☐ ☐
to make to comply with ECL requirements
► A qualitative discussion on effects of an ECL approach
on the quantum of credit losses as compared to ☐ ☐ ☐
allowances determined under incurred loss approach
3 IFRS EDTF 26 On the date of initial application of the impairment
7.42P requirements of IFRS 9, does the entity disclose
information that permits the reconciliation of the ending
impairment allowances in accordance with IAS 39 and
the provisions in accordance with IAS 37 to the opening
loss allowances determined in accordance with IFRS 9.
☐ ☐ ☐
For financial assets, this disclosure must be provided by
the related financial assets’ measurement categories
in accordance with IAS 39 and IFRS 9, and must show
separately the effect of the changes in the measurement
category on the loss allowance at that date
4 - EDTF 4 Once the applicable rules are finalised, does the entity
outline plans to meet each new key regulatory ratio (i.e.,
how the business will be run differently) in order to meet ☐ ☐ ☐
new ratios e.g., the net stable funding ratio, liquidity
coverage ratio and leverage ratio and, once the applicable
rules are in force, provide such key ratios
Does the entity disclose the quantitative impact that
the revised accounting allowance for credit losses have
☐ ☐ ☐
on regulatory capital (under current regulatory rules)

- - Under the current regulatory framework an increased

credit losses affect capital in different ways depending on
the approach. Under the internal ratings based approach,
where the balance of allowances determined for
accounting purposes is less than the one-year regulatory
EL amount, the difference is taken as a deduction from
Common Equity Tier 1 capital. Where the balance of
accounting loan impairment allowances is greater than
the EL, the surplus over the EL is allowable to count
towards capital resources as a Tier 2 item, subject to a
ceiling.

5 - EDTF 5 Does the entity disclose how the risk management `

organisation, processes and key functions have been
organised to run the ECL approach:
► Consider highlighting how credit practices and
policies form the basis for implementation of ECL ☐ ☐ ☐
requirements
► Describe impact of new approach on existing ☐ ☐ ☐
processes and changes required to governance
practices and processes
6 - EDTF 8 Does the entity describe the relationship, if any, between
stress testing programs and implementation of the ECL
accounting requirements, including any links between
☐ ☐ ☐
the stress testing approach, assumptions, processes
and the implementation of an ECL methodology

19
 IFRS EDTF/BCBS
Item # Reference Reference Description Yes No N/A

7 - EDTF 12 Does the entity qualitatively and quantitatively discuss

capital planning, including:
► An explanation of how ECL requirements are
anticipated to have an impact on capital planning
► Any strategic changes expected by management ☐ ☐ ☐
to the extent the impact is material (in particular,
in meeting capital adequacy requirements) ☐ ☐ ☐
► For unclear or not yet fully determined regulatory ☐ ☐ ☐
requirements, the effects of such uncertainty
As the regulatory requirements become clearer
and entities’ implementation efforts progress, this
is in area where disclosure is expected to develop
over the transition period

8 - EDTF 26 Does the entity provide a disclosure of vintage analysis,

where it aids understanding of the credit risk exposures,
particularly when there is a lending portfolio with ☐ ☐ ☐
heightened credit risk, and the period in which it was
originated has a bearing on the extent of that credit
risk and the resulting ECL

9 IAS 8 EDTF 26 Does the entity describe the quantitative impact on

financial statements with sufficient granularity to
allow users to understand how the adoption of the ☐ ☐ ☐
ECL approach contributes to a change in the allowance
balance compared to the previous incurred loss approach
and how the impact varies across the entity’s portfolios

On initial application, entities should assess whether

the existing disclosure segmentation continues to be
appropriate. On an ongoing basis, entities should provide
a breakdown of portfolios by geography, line of business,
product, credit quality and vintage. As specific risk
emerges, entities should consider providing separate
disclosures segmented for the affected lending and
highlighting relevant risk. As risk diminishes, such
disclosures are removed

10 - EDTF 26 Does the entity provide the following transition disclosures

by measurement category:
► Stage allocation – a description of the stage allocation
(Stage 1, 2 or 3) at the date of initial application and
which exposures were considered impaired under
IAS 39, whether on an individual or collective basis ☐ ☐ ☐
► By product and portfolio – a disclosure of any changes
in the allowance balance resulting from the
introduction of the new standard ☐ ☐ ☐
► A disclosure of any simplified approached used on
transition that would not be applicable permanently,
i.e., recognising a lifetime ECL for all instruments
unless they were low credit risk ☐ ☐ ☐
► If accounting comparatives are provided in compliance
with the transition provisions of IFRS 9, a clarification
of the basis of measurement (as the application of
the transition provisions of IFRS 9 requires the
information for comparative periods to be prepared
on a mixed basis, with some financial assets measured
under IFRS 9 and some under IAS 39) ☐ ☐ ☐
► If restated comparative figures that do not fully
comply with the transition requirements of IFRS 9
are provided outside the financial statements, an ☐ ☐ ☐
explanation of the underlying assumptions used
for non-GAAP restated comparatives

11 - EDTF 27 Does the entity define non-performing and credit-impaired

loans (i.e., Stage 3) including when financial assets are no ☐ ☐ ☐
longer considered to be non-performing or credit-impaired

20
Post-transition disclosures
An entity must apply this section for annual periods beginning on or after 1 January 2018, unless earlier
adoption was elected. All of the disclosures are intended to be applied permanently, both in the year of
transition and post-transition.

Classification and measurement

Disclosure made
IFRS
Item # Reference Description Yes No N/A

General
1 IFRS 7.8 Does the entity disclose, either in the statement of financial position or
in the notes, the carrying amounts of each of the following categories,
as specified in IFRS 9:
a. Financial assets measured at fair value through profit or loss,
showing separately:
i. Those designated as such upon initial recognition or ☐ ☐ ☐
subsequently in accordance with paragraph 6.7.110 of IFRS 9
ii. Those mandatorily measured at fair value through profit or loss
in accordance with IFRS 9
☐ ☐ ☐
b. Financial liabilities at fair value through profit or loss, showing
separately:
i. Those designated as such upon initial recognition or ☐ ☐ ☐
subsequently in accordance with paragraph 6.7.1 of IFRS 9
ii. Those that meet the definition of held for trading in IFRS 9 ☐ ☐ ☐
c. Financial assets measured at amortised cost ☐ ☐ ☐
d. Financial liabilities measured at amortised cost ☐ ☐ ☐
e. Financial assets measured at fair value through other
comprehensive income, showing separately:
i. Financial assets that are measured at fair value through other
comprehensive income in accordance with paragraph 4.1.2A11 ☐ ☐ ☐
of IFRS 9
ii. Investments in equity instruments designated as such upon
initial recognition in accordance with paragraph 5.7.5 12 of ☐ ☐ ☐
IFRS 9
2 IFRS Does the entity disclose the following, for financial assets and financial
7.42N liabilities that have been reclassified out of the fair value through profit
or loss category as a result of the transition to IFRS 9:
a. The effective interest rate determined on the date of initial ☐ ☐ ☐
application

b. The interest revenue or expense recognised ☐ ☐ ☐

10
A credit derivative that is measured at fair value through profit or loss to manage the credit risk of all, or a part of,
a financial instrument (credit exposure).
11
Financial assets whose cash flows meet the SPPI test (i.e., Solely Payments of Principle and Interest) and which are
held under a business model to achieve both collecting the contractual cash flows and selling financial assets.
12
Irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment
in an equity instrument.

21
 Disclosure made
IFRS
Item # Reference Description Yes No N/A

IFRS If an entity treats the fair value of a financial asset or a financial liability
7.42N as the new gross carrying amount at the date of initial application (see
paragraph 7.2.11 of IFRS 9), the disclosures in this paragraph must
be made for each reporting period until derecognition (note that this
applies only when it is impracticable, as defined in IAS 8, for an entity
to apply retrospectively the effective interest method, which, in our
view, should be limited to rare circumstances).
Otherwise, the disclosures in this paragraph need not be made after
the annual reporting period in which the entity initially applies the
classification and measurement requirements for financial assets
in IFRS 9.

Financial assets or financial liabilities at fair value through profit or loss

3 IFRS 7.9 If the entity has designated as measured at fair value through profit or
loss, a financial asset (or group of financial assets) that would otherwise
be measured at fair value through other comprehensive income or
amortised cost, does the entity disclose:
a. The maximum exposure to credit risk13 (see paragraph 36(a) of
IFRS 7) of the financial asset (or group of financial assets) at ☐ ☐ ☐
the end of the reporting period
b. The amount by which any related credit derivatives or similar
instruments mitigate that maximum exposure to credit risk (see
☐ ☐ ☐
paragraph 36(b) of IFRS 7)
c. The amount of change, during the period and cumulatively, in
the fair value of the financial asset (or group of financial assets)
☐ ☐ ☐
that is attributable to changes in the credit risk of the financial asset
d. The amount of the change in the fair value of any related credit
derivatives or similar instruments that has occurred during the
☐ ☐ ☐
period and cumulatively since the financial asset was designated
4 IFRS 7.10 Presentation in other comprehensive income
If the entity has designated a financial liability as at fair value through
profit or loss in accordance with paragraph 4.2.2 of IFRS 9 and is
required to present the effects of changes in that liability’s credit
risk in other comprehensive income, does the entity disclose:
a. The amount of change, cumulatively, in the fair value of the financial
liability that is attributable to changes in the credit risk of that
liability (see paragraphs B5.7.13–B5.7.20 of IFRS 9 for guidance ☐ ☐ ☐
on determining the effects of changes in a liability’s credit risk)
b. The difference between the financial liability’s carrying amount
and the amount the entity would be contractually required to
☐ ☐ ☐
pay at maturity to the holder of the obligation
c. Any transfers of the cumulative gain or loss within equity during ☐ ☐ ☐
the period including the reason for such transfers

d. If a liability is derecognised during the period, the amount (if any)

presented in other comprehensive income that was realised at
☐ ☐ ☐
derecognition

IFRS An entity may, at initial recognition, irrevocably designate a financial

9.4.2.2 asset or financial liability as measured at fair value through profit or
loss, if doing so eliminates or significantly reduces an “accounting
mismatch” that would otherwise arise from measuring assets or
liabilities or recognising the gains and losses on them on different
bases or if designation will result in more relevant information.

13
See Item 34 of the section “Post-transition disclosures – Impairment” in this checklist.

22
 Disclosure made
IFRS
Item # Reference Description Yes No N/A
5 IFRS Presentation in other profit or loss
7.10A If an entity has designated a financial liability as at fair value through
profit or loss in accordance with paragraph 4.2.2 of IFRS 9 and is
required to present all changes in the fair value of that liability in profit
or loss (including the effects of changes in the credit risk of the liability,
see paragraphs 5.7.7 and 5.7.8 of IFRS 9 for further guidance), does
the entity disclose:
a. The amount of change, during the period and cumulatively, in the
fair value of the financial liability that is attributable to changes in
the credit risk of that liability (see paragraphs B5.7.13–B5.7.20
of IFRS 9 for guidance on determining the effects of changes in ☐ ☐ ☐
a liability’s credit risk)
b. The difference between the financial liability’s carrying amount
and the amount the entity would be contractually required to ☐ ☐ ☐
pay at maturity to the holder of the obligation
6 IFRS 7.11 Does the entity disclose:
a. A detailed description of the methods used to comply with the
disclosure requirements in paragraphs 9(c), 10(a) and 10A(a) of ☐ ☐ ☐
IFRS 7 (refer to items 3, 4 and 5 of this section) and paragraph
5.7.7(a) of IFRS 9 relating to designating financial liabilities at
fair value through profit or loss attributable to changes in credit
risk, including an explanation of why the method is appropriate

IFRS If the entity has designated a financial asset or financial liability

9.5.7.7.(a) as measured at fair value through profit or loss, it must disclose
the amount of change in the fair value of the financial asset that
is attributable to changes in the credit risk in other comprehensive
income unless it is required to present all changes in the fair value
of that liability (including the effects of changes in the credit risk of
the liability) in profit or loss.

b. If the entity believes that the disclosure it has given, either in

the statement of financial position or in the notes, to comply
with the requirements in paragraph 9(c), 10(a) or 10A(a) of IFRS 7
and paragraph 5.7.7(a) of IFRS 9 does not faithfully represent the
☐ ☐ ☐
change in the fair value of the financial asset or financial liability
attributable to changes in its credit risk, the reasons for reaching
this conclusion and the factors it believes are relevant
c. A detailed description of the methodology or methodologies used to
determine whether presenting the effects of changes in a liability’s
credit risk in other comprehensive income would create or enlarge
an accounting mismatch in profit or loss. If an entity is required to ☐ ☐ ☐
present the effects of changes in a liability’s credit risk in profit or
loss as a result of an accounting mismatch (see paragraph 5.7.8 of
IFRS 914), the disclosure must include a detailed description of the
economic relationship described in paragraph B5.7.6 of IFRS 915
Investments in equity instruments designated at fair value through other comprehensive income
7 IFRS If the entity has designated investments in equity instruments to
7.11A be measured at fair value through other comprehensive income,
as permitted by paragraph 5.7.516 of IFRS 9 (irrevocable election),
does the entity disclose:
a. Which investments in equity instruments have been designated ☐ ☐ ☐
to be measured at fair value through other comprehensive income

14
If the requirements in paragraph 5.7.7of IFRS 9 would create or enlarge an accounting mismatch in profit or loss,
an entity shall present all gains or losses on that liability (including the effects of changes in the credit risk of that liability)
in profit or loss.
15
An entity must recognise in profit and loss dividends from an investment which they have elected to present the changes
in fair value in other comprehensive income.
16
Irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment in
an equity instrument.

23
 Disclosure made
IFRS
Item # Reference Description Yes No N/A
b. The reasons for using this presentation alternative ☐ ☐ ☐
c. The fair value of each such investment at the end of the reporting
period
☐ ☐ ☐
d. Dividends recognised during the period, showing separately those
related to investments derecognised during the reporting period and
☐ ☐ ☐
those related to investments held at the end of the reporting period
e. Any transfers of the cumulative gain or loss within equity during
the period, such as transfers from OCI to retained earnings, ☐ ☐ ☐
including the reason for such transfers
8 IFRS If an entity derecognised investments in equity instruments measured
7.11B at fair value through other comprehensive income during the reporting
period, does the entity disclose: ☐ ☐ ☐
a. The reasons for disposing of the investments
b. The fair value of the investments at the date of derecognition ☐ ☐ ☐
c. The cumulative gain or loss on disposal ☐ ☐ ☐
9 IFRS If, in the current or previous reporting periods, an entity has reclassified
7.12B any financial assets in accordance with paragraph 4.4.1 (changes in
business model) of IFRS 9, does the entity disclose: ☐ ☐ ☐
a. The date of reclassification
b. A detailed explanation of the change in business model and
a qualitative description of its effect on the entity’s financial
☐ ☐ ☐
statements
c. The amount reclassified into and out of each category ☐ ☐ ☐
10 IFRS For each reporting period following reclassification until derecognition,
7.12C for assets reclassified out of the fair value through profit or loss
category so that they are measured at amortised cost or fair value
through other comprehensive income in accordance with paragraph
4.4.1 (changes in business model) of IFRS 9, does the entity disclose:
a. The effective interest rate determined on the date of reclassification ☐ ☐ ☐
b. The interest revenue recognised ☐ ☐ ☐
11 IFRS If, since its last annual reporting date, an entity has reclassified financial
7.12D assets out of the fair value through other comprehensive income
category so that they are measured at amortised cost or out of
the fair value through profit or loss category so that they are measured
at amortised cost or fair value through other comprehensive income,
does the entity disclose:
a. The fair value of the financial assets at the end of the reporting ☐ ☐ ☐
period

b. The fair value gain or loss that would have been recognised in profit
or loss or other comprehensive income during the reporting period ☐ ☐ ☐
if the financial assets had not been reclassified

12 IFRS 7.14 Does the entity disclose:

a. The carrying amount of financial assets it has pledged as collateral
for liabilities or contingent liabilities, including amounts that have ☐ ☐ ☐
been reclassified in accordance with paragraph 3.2.23(a) of IFRS 9
(transferor provides a non-cash collateral to the transferee and
the latter has the right by contract to sell)

b. The terms and conditions relating to its pledge ☐ ☐ ☐

13 IFRS Does the entity disclose the amount of the loss allowance in the notes ☐ ☐ ☐
7.16A to the financial statements

24
 Disclosure made
IFRS
Item # Reference Description Yes No N/A

IFRS The carrying amount of financial assets measured at fair value through
7.16A other comprehensive income in accordance with paragraph 4.1.2A17
(held to collect and sell business model, and meet the SPPI test) of
IFRS 9 is not reduced by a loss allowance and an entity must not
present the loss allowance separately in the statement of financial
position as a reduction of the carrying amount of the financial asset.

14 IFRS 7.20 Does the entity disclose the following items of income, expense, gains or
losses either in the statement of comprehensive income or in the notes:
a. Net gains or net losses on:
i. Financial assets or financial liabilities measured at fair value
through profit or loss, showing separately those on financial
assets or financial liabilities designated as such upon initial
recognition or subsequently, in accordance with paragraph ☐ ☐ ☐
6.7.118 of IFRS 9, and those on financial assets or financial
liabilities that are mandatorily measured at fair value through
profit or loss in accordance with IFRS 9 (e.g., financial liabilities
that meet the definition of held for trading in IFRS 9). For
financial liabilities designated as at fair value through profit
or loss, an entity must show separately the amount of gain
or loss recognised in other comprehensive income and
the amount recognised in profit or loss

ii. Financial liabilities measured at amortised cost ☐ ☐ ☐

iii. Financial assets measured at amortised cost ☐ ☐ ☐
iv. Investments in equity instruments designated at fair value
through other comprehensive income in accordance with ☐ ☐ ☐
paragraph 5.7.519 of IFRS 9 (irrevocable election)

v. Financial assets measured at fair value through other

comprehensive income in accordance with paragraph
4.1.2A of IFRS 9, showing separately the amount of gain
or loss recognised in other comprehensive income during ☐ ☐ ☐
the period and the amount reclassified upon derecognition
from accumulated other comprehensive income to profit or
loss for the period

b. Total interest revenue and total interest expense (calculated using

the effective interest method) for financial assets that are measured
at amortised cost or that are measured at fair value through other
comprehensive income in accordance with paragraph 4.1.2A of ☐ ☐ ☐
IFRS 9 (showing these amounts separately); or financial liabilities
that are not measured at fair value through profit or loss

c. Fee income and expense (other than amounts included in

determining the effective interest rate) arising from:
i. Financial assets and financial liabilities that are not at
fair value through profit or loss; and ☐ ☐ ☐
ii. Trust and other fiduciary activities that result in the holding or
investing of assets on behalf of individuals, trusts, retirement ☐ ☐ ☐
benefit plans, and other institutions

15 IFRS Does the entity disclose an analysis of the gain or loss recognised in
7.20A the statement of comprehensive income arising from the derecognition
of financial assets measured at amortised cost, showing separately ☐ ☐ ☐
gains and losses arising from derecognition of those financial assets.
This disclosure must include the reasons for derecognising those
financial assets

17
Financial assets whose cash flows meet the SPPI test (i.e., Solely Payments of Principle and Interest) and which
are held under a business model to achieve both collecting the contractual cash flows and selling financial assets.
18
Credit derivative that is measured at fair value through profit or loss to manage the credit risk of all, or a part of,
a financial instrument (credit exposure).
19
Irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment
in an equity instrument.

25
Impairment
Disclosure made
IFRS EDTF/BCBS
Item # Description Yes No N/A
Reference Reference
Credit risk management practices
1 IFRS EDTF 2, 3, 5 The credit risk disclosures made in accordance with
7.35B 26 paragraphs 35F–35N of IFRS 7 shall enable users of
BCBS financial statements to understand the effect of credit
Principle risk on the amount, timing and uncertainty of future cash
8.78 flows. To achieve this objective, does the entity provide
credit risk disclosures which include:
a. Information about an entity’s credit risk management
practices and how they relate to the recognition ☐ ☐ ☐
and measurement of ECL, including the methods,
assumptions and information used to measure ECL

b. Quantitative and qualitative information that allows

users of financial statements to evaluate the amounts
in the financial statements arising from ECL, including
☐ ☐ ☐
changes in the amount of ECL and the reasons for
those changes
c. Information about an entity’s credit risk exposure
(i.e., the credit risk inherent in an entity’s financial ☐ ☐ ☐
assets and commitments to extend credit) including
significant credit risk concentrations

2 IFRS EDTF 2 Does the entity explain credit risk management practices
7.35F(a) and how they relate to the recognition and measurement
of ECL. To meet this objective, an entity must disclose
information that enables users of financial statements
to understand and evaluate how an entity determined
whether the credit risk of financial instruments has
increased significantly since initial recognition, including,
if and how:
a. Financial instruments are considered to have low
credit risk in accordance with paragraph 5.5.10
of IFRS 920, including the classes of financial ☐ ☐ ☐
instruments to which it applies

b. The presumption in paragraph 5.5.11 of IFRS 9, that

there have been significant increases in credit risk ☐ ☐ ☐
since initial recognition when financial assets are
more than 30 days past due, has been rebutted

IFRS If reasonable and supportable forward-looking information

9.5.5.11 is available without undue cost or effort, an entity cannot
rely solely on past due information when determining
whether credit risk has increased significantly since initial
recognition. There is a rebuttable presumption that the
credit risk on a financial asset has increased significantly
since initial recognition when contractual payments are
more than 30 days past due which an entity can rebut
if it has reasonable and supportable information that
demonstrates that the credit risk has not increased
significantly since initial recognition even though the
contractual payments are more than 30 days past due.
op

20
An entity may assume that the credit risk on a financial instrument has not increased significantly since initial recognition
if the financial instrument is determined to have low credit risk at the reporting date. Further guidance on the definition of
“low credit risk” for the purposes of paragraph 5.5.10 of IFRS 9 is provided in IFRS 9.B5.5.22 – B5.5.24.

26
 Disclosure made
IFRS EDTF/BCBS
Item # Description Yes No N/A
Reference Reference
3 - EDTF 7 Does the entity describe the key risks that arise from
the entity’s business models and activities, the entity’s ☐ ☐ ☐
risk appetite in the context of its business models and
how the entity manages such risks21
4 - EDTF 26 Does the entity provide a disclosure of the vintage
analysis, where it aids understanding of the credit risk
exposures, particularly when there is a lending portfolio ☐ ☐ ☐
with heightened credit risk, and the period in which it was
originated has a bearing on the extent of that credit risk
and the resulting ECL
5 - EDTF 27 Does the entity define non-performing and credit-impaired
loans (i.e., Stage 3), including when financial assets are no
☐ ☐ ☐
longer considered to be non-performing or credit-impaired
Inputs, assumptions and estimation techniques

6 IFRS EDTF 2, 27 Does the entity explain the inputs, assumptions and
7.35G(a) BCBS estimation techniques used to apply the requirements
Principle in Section 5.5 of IFRS 9 (“Impairment”). For this purpose,
8.81 and an entity shall disclose:
8.78 a. The basis of inputs and assumptions and the
estimation techniques used to: ☐ ☐ ☐
i. Measure the 12-month and lifetime ECL
ii. Determine whether the credit risk of financial
instruments have increased significantly since ☐ ☐ ☐
initial recognition
iii. Determine whether a financial asset is a credit-
impaired financial asset
☐ ☐ ☐
IFRS EDTF 2 Paragraph 35G (a) of IFRS 7 requires the disclosure of
7.B8C information about the basis of inputs and assumptions and
the estimation techniques used to apply the impairment
requirements in IFRS 9. An entity’s assumptions and
inputs used to measure ECL or determine the extent
of increases in credit risk since initial recognition may
include information obtained from internal historical
information or rating reports and assumptions about
the expected life of financial instruments and the timing
of the sale of collateral.

7 IFRS EDTF 2 Does the entity explain the inputs, assumptions and
7.35G(b) BCBS estimation techniques used to apply the requirements
Principle in Section 5.5 of IFRS 9. For this purpose an entity ☐ ☐ ☐
8.79 must disclose how forward-looking information has
been incorporated into the determination of ECL,
including the use of macroeconomic information

21
In order to enable users to understand how risk measures relate to line items in the balance sheet and income statement,
entities may have to adapt their descriptions to reflect any changes resulting from revisions to accounting requirements.

27
 Disclosure made
IFRS EDTF/BCBS
Item # Description Yes No N/A
Reference Reference
8 - EDTF 2 Does the entity explain how key concepts are implemented
and describe the credit risk modelling techniques used:
► Leveraging existing sources:22
► For portfolios where advanced Basel models
are used as starting point, the extent of reliance
on such models and how the methodology is
adapted to comply with IFRS 9
► For portfolios not based on Basel models, the
techniques developed to arrive at the ECL for ☐ ☐ ☐
accounting purposes
► Additional adjustments23
► The use and nature of material additional
adjustments used to capture factors not ☐ ☐ ☐
specifically embedded in the models used

9 IFRS EDTF 2, Does the entity explain the inputs, assumptions and
7.35G(c) BCBS estimation techniques used to apply the requirements
Principle in Section 5.5 “Impairment” of IFRS 9. For this purpose, ☐ ☐ ☐
8.81 an entity must disclose any changes in the estimation
techniques or significant assumptions made during
the reporting period and the reasons for those changes

10 - EDTF 3 Does the entity provide quantitative disclosures around

the key drivers of change in credit losses, but only where
they are meaningful and relevant to understanding
material changes:
► Top and emerging risks and their impact (or not) on
ECL calculation, either quantitatively or qualitatively ☐ ☐ ☐
as appropriate
► Sensitivity disclosures, which can provide useful
quantitative information when they are meaningful
and relevant to understanding how credit losses
can change materially. Examples include:
► Variables that impact on an ongoing basis, i.e., ☐ ☐ ☐
house price indices on residential mortgages
► Changes that emerge at a point in time for specific
lending portfolios, i.e., an economic shock to ☐ ☐ ☐
a specific country or industry
Quantitative disclosures may be less appropriate for
some risks, notwithstanding that they are relevant.
This could be where it is concluded that such information
cannot be included in ECL. Such risks could include
potential economic or political developments. For these
risks, it may be more appropriate to provide qualitative
disclosures

22
Entities could consider providing an explanation of the use and nature of material additional adjustments, i.e., post-
modelling adjustments to reflect macro-economic or other factors which are not adequately addressed by the current
models.
23
For portfolios where advanced Basel models are used as the starting point, entities could consider explaining the
extent to which they rely on these models and how they adapt the methodology to comply with the requirements of
the new accounting standards.

28
 Disclosure made
IFRS EDTF/BCBS
Item # Description Yes No N/A
Reference Reference
11 - EDTF 15 Does the entity tabulate credit risk in the banking book,
showing average probability of default (PD) and loss
given default (LGD) as well as exposure at default (EAD),
total Risk-Weighted Assets (RWA) and RWA density for
Basel asset classes and major portfolios within the Basel
asset classes at a suitable level of granularity based on
☐ ☐ ☐
internal ratings grades. For non-retail banking book credit
portfolios, internal ratings grades and PD bands should
be mapped against external credit ratings and the number
of PD bands presented should match the number of notch-
specific ratings used by credit rating agencies

Applying this recommendation in the new ECL framework

would require consideration of the following disclosures:
a. Whether credit quality disclosures can be made ☐ ☐ ☐
that are similar to those used for regulatory capital
purposes (see Figure 3 of recommendation 15 of
the EDTF 2012 report, reproduced in the Appendix 1
to this checklist)
b. PDs, LGDs and EADs might not be used by entities
for measuring ECL for all their portfolios. Where other
approaches to measuring ECL are used, consideration
should be given to how best to describe and analyse
calculations using other approaches. It would be
☐ ☐ ☐
helpful to analyse the balance sheet total between
the different approaches used. Where material
additional adjustments to the ECL are applied, these
could also be described and analysed as appropriate
12 - EDTF 2 Does the entity provide clear disclosures defining all
significant terms used in the calculations of ECL, with
a focus on explaining the differences between definitions
as applied in determination of EL within the regulatory
☐ ☐ ☐
capital framework (for example, as used in Pillar 3
disclosures) and those used in determining ECL for
accounting purposes
13 - EDTF 2 Does the entity provide an explanation of the use and
nature of material additional adjustments which are
used to capture factors not specifically embedded
in the models used. While many adjustments are part
of the normal modelling process (e.g., to adjust PDs as
defined for capital purposes to accounting requirements
or to incorporate forward-looking information),
☐ ☐ ☐
management may determine that additional, post-
modelling adjustments are needed to reflect macro-
economic or other factors which are not adequately
addressed by the current models. Such adjustments
would result in an increase or decrease in the overall
allowance on a collective basis

Credit-risk concentration
14 IFRS EDTF 26 To enable users of financial statements to assess
7.35M BCBS an entity’s credit risk exposure and understand its
Principle significant credit risk concentrations, does the entity
8.76 disclose, by credit risk rating grades, the gross carrying
amount of financial assets and the exposure to credit risk
on loan commitments and financial guarantee contracts.
This information must be provided separately for financial
instruments:
a. For which the loss allowance is measured at an ☐ ☐ ☐
amount equal to 12-month ECL

29
 Disclosure made
IFRS EDTF/BCBS
Item # Description Yes No N/A
Reference Reference
b. For which the loss allowance is measured at an
amount equal to lifetime ECL and that are:
i. Financial instruments for which credit risk has
increased significantly since initial recognition ☐ ☐ ☐
but that are not credit-impaired financial assets

ii. Financial assets that are credit-impaired at

the reporting date (but that are not purchased ☐ ☐ ☐
or originated credit-impaired)

iii. Trade receivables, contract assets or lease

receivables for which the loss allowances are
measured in accordance with paragraph 5.5.15 ☐ ☐ ☐
of IFRS 9 (lifetime ECL)
c. That are purchased or originated credit-impaired
financial assets ☐ ☐ ☐
IFRS An entity must always measure the loss allowance at
9.5.5.15 an amount equal to lifetime ECL for trade receivables
or contract assets that do not contain a significant
financing component. For all lease receivables and
any trade receivables and contract assets that do
contain a significant financing component, the entity
may choose, as its accounting policy, to measure
the loss allowance at an amount equal to lifetime ECL.

15 IFRS EDTF 26 Does the entity provide information that enables users
7.B8H of financial statements to understand whether there
are groups or portfolios of financial instruments with
particular features that could affect a large portion of ☐ ☐ ☐
that group of financial instruments such as concentration
to particular risks. This could include, for example, loan-
to-value groupings, geographical, industry or issuer-type
concentrations

IFRS Paragraph 35M of IFRS 724 requires the disclosure of

7.35M information about an entity’s credit risk exposure and
significant concentrations of credit risk at the reporting
date. A concentration of credit risk exists when a number
of counterparties are located in a geographical region
or are engaged in similar activities and have similar
economic characteristics that would cause their ability
to meet contractual obligations to be similarly affected
by changes in economic or other conditions.
The number of credit risk rating grades used to disclose
the information in accordance with paragraph 35M
of IFRS 7 must be consistent with the number that
the entity reports to key management personnel for
credit risk management purposes.

16 IFRS 7.B8I If past due information is the only borrower-specific

information available and an entity uses past due
information to assess whether credit risk has increased ☐ ☐ ☐
significantly since initial recognition in accordance with
paragraph 5.5.10 of IFRS 925, does the entity provide
an analysis by past due status for those financial assets

24
IFRS7 Appendix A: Rating of credit risk based on the risk of a default occurring on the financial instrument.
25
An entity may assume that the credit risk on a financial instrument has not increased significantly since initial recognition
if the financial instrument is determined to have low credit risk at the reporting date.

30
 Disclosure made
IFRS EDTF/BCBS
Item # Description Yes No N/A
Reference Reference
17 - EDTF 26 Does the entity provide the following disclosures, also
BCBS considering whether existing segmentation is sufficiently
Principle granular to appropriately understand credit risk under ☐ ☐ ☐
8.77 an ECL approach:
► Break down portfolios by geography, line of business,
product, credit quality and vintage
► Highlights of specific emerging risks, i.e., territory, ☐ ☐ ☐
industry, type of lending, etc.

Collective assessment
18 IFRS EDTF 2, 5 Does the entity explain its credit risk management
7.35F(c) BCBS practices and how they relate to the recognition and
Principle measurement of ECL
☐ ☐ ☐
8.80 To meet this objective, an entity must disclose information
that enables users of financial statements to understand
and evaluate how the instruments were grouped if ECL
were measured on a collective basis

19 IFRS EDTF 26 When an entity has measured ECL on a collective basis, ☐ ☐ ☐

7.B8J BCBS the entity may not be able to allocate the gross carrying
Principle amount of individual financial assets or the exposure to
8.76 credit risk on loan commitments and financial guarantee
contracts to the credit risk rating grades for which lifetime
ECL are recognised. In that case, does the entity apply
the requirement in paragraph 35M of IFRS 726 to those
financial instruments that can be directly allocated to a
credit risk rating grade and disclose separately the gross
carrying amount of financial instruments for which
lifetime ECL have been measured on a collective basis
Modified assets
20 IFRS EDTF 2, 27 Does the entity explain its credit risk management
7.35F(f) practices and how they relate to the recognition
and measurement of ECL. To meet this objective,
an entity must disclose information that enables
users of financial statements to understand and
evaluate how the requirements in paragraph 5.5.12
of IFRS 9 for the modification of contractual cash flows
of financial assets have been applied, including how
an entity:
i. Determines whether the credit risk on a financial asset
that has been modified while the loss allowance was
measured at an amount equal to lifetime ECL, has
improved to the extent that the loss allowance reverts
to being measured at an amount equal to 12-month ☐ ☐ ☐
ECL in accordance with paragraph 5.5.5 of IFRS 9

ii. Monitors the extent to which the loss allowance

on financial assets meeting the criteria in (i) is
subsequently remeasured at an amount equal to
☐ ☐ ☐
lifetime ECL in accordance with paragraph 5.5.3
of IFRS 9

26
IFRS7 Appendix A: Rating of credit risk based on the risk of a default occurring on the financial instrument.

31
 Disclosure made
IFRS EDTF/BCBS
Item # Description Yes No N/A
Reference Reference
21 IFRS EDTF 2, 27, Paragraph 35F(f)(ii) of IFRS 7 requires the disclosure of
7.B8B 28 information about how an entity monitors the extent to
which the loss allowance on financial assets previously
disclosed in accordance with paragraph 35F(f)(i) are
subsequently measured at an amount equal to lifetime
ECL in accordance with paragraph 5.5.3 of IFRS 9.
☐ ☐ ☐
To assist users in understanding the subsequent increase
in credit risk of modified financial assets, does the entity
include information about modified financial assets
meeting the criteria in paragraph 35F(f)(i) of IFRS 7 for
which the loss allowance has reverted to being measured
at an amount equal to lifetime ECL (i.e., a deterioration
rate)
22 IFRS EDTF 2, 28 To enable users of financial statements to understand
7.35J the nature and effect of modifications of contractual
cash flows on financial assets that have not resulted
in derecognition and the effect of such modifications
on the measurement of ECL, does the entity disclose:
a. The amortised cost before the modification and the
net modification gain or loss recognised for financial
assets for which the contractual cash flows have been
☐ ☐ ☐
modified during the reporting period while they had
a loss allowance measured at an amount equal to
lifetime ECL
b. The gross carrying amount at the end of the reporting
period of financial assets that have been modified
since initial recognition at a time when the loss
allowance was measured at an amount equal to
☐ ☐ ☐
lifetime ECL and for which the loss allowance has
changed during the reporting period to an amount
equal to 12-month ECL
Default definition

23 IFRS EDTF 2 Does the entity explain its credit risk management
7.35F(b) practices and how they relate to the recognition and
measurement of ECL
☐ ☐ ☐
To meet this objective an entity must disclose information
that enables users of financial statements to understand
and evaluate an entity’s definitions of default, including
the reasons for selecting those definitions
24 IFRS EDTF 2, 27 In accordance with paragraph 5.5.9 of IFRS 9, the
7.B8A (a), determination of whether lifetime ECL should be
(b) and (c) recognised is based on the increase in the risk of
a default occurring since initial recognition.
Does the entity disclose the following Information
about its definitions of default, in order to assist users
of financial statements in understanding how an entity
has applied the ECL requirements in IFRS 9:
a. The qualitative and quantitative factors considered ☐ ☐ ☐
in defining default
b. Whether different definitions have been applied to
different types of financial instruments
☐ ☐ ☐
c. Assumptions about the cure rate (i.e., the number
of financial assets that return to a performing status) ☐ ☐ ☐
after a default occurred on the financial asset

32
 Disclosure made
IFRS EDTF/BCBS
Item # Description Yes No N/A
Reference Reference
Credit-impaired
25 IFRS7.35F EDTF 2, 5, Does the entity explain its credit risk management
(d) 27 practices and how they relate to the recognition and
measurement of ECL
☐ ☐ ☐
To meet this objective, an entity must disclose information
that enables users of financial statements to understand
and evaluate how an entity determined that financial
assets are credit-impaired financial assets

Write-offs
26 IFRS EDTF 28 Does the entity disclose the contractual amount
7.35L outstanding on financial assets that were written ☐ ☐ ☐
off during the reporting period and are still subject
to enforcement activity
27 IFRS Does the entity explain its credit risk management
7.35F(e) practices and how they relate to the recognition and
measurement of ECL
To meet this objective, an entity must disclose information
that enables users of financial statements to understand ☐ ☐ ☐
and evaluate an entity’s write-off policy, including the
indicators that there is no reasonable expectation of
recovery and information about the policy for financial
assets that are written-off but are still subject to
enforcement activity

Trade receivables
28 IFRS EDTF 26 For trade receivables, contract assets and lease
7.35N receivables to which an entity applies paragraph 5.5.15
of IFRS 9 (see item 14 above), does the entity provide
the disclosure required by paragraph 35M of IFRS 7 (see
☐ ☐ ☐
item 15 of this Section). Note that for trade receivables,
the disclosure may be based on a provision matrix (see
paragraph B5.5.35 of IFRS 9)

IFRS IFRS 9 allows the use of practical expedients when

9.B5.5.35 measuring ECL such as a provision matrix for trade
receivables. A provision matrix might, for example,
specify fixed provision rates depending on the number
of days that a trade receivable is past due (for example,
1 per cent if not past due, 2 per cent if less than 30 days
past due, 3 per cent if more than 30 days, but less than
90 days past due, 20 per cent if 90–180 days past due,
etc.). Per BCBS Appendix A45 -46, practical expedients
should have limited use by entities and justification for
the use of such practical expedients should be clearly
documented.

Reconciliation disclosures

29 IFRS EDTF 28 To explain the changes in the loss allowance and the
7.35H reasons for those changes, does the entity provide,
by class of financial instrument, a reconciliation from
the opening balance to the closing balance of the loss
allowance, in a table, showing separately the changes
during the period for:
a. The loss allowance measured at an amount equal ☐ ☐ ☐
to 12-month ECL

33
 Disclosure made
IFRS EDTF/BCBS
Item # Description Yes No N/A
Reference Reference
b. The loss allowance measured at an amount equal
to lifetime ECL for:
i. Financial instruments for which credit risk has
increased significantly since initial recognition ☐ ☐ ☐
but that are not credit-impaired financial assets

ii. Financial assets that are credit-impaired at

the reporting date (but that are not purchased ☐ ☐ ☐
or originated credit-impaired)

iii. Trade receivables, contract assets or lease

receivables for which the loss allowances are
measured in accordance with paragraph 5.5.1527 ☐ ☐ ☐
of IFRS 9

c. Financial assets that are purchased or originated ☐ ☐ ☐

credit-impaired

In addition to the reconciliation, an entity must disclose

the total amount of undiscounted ECL at initial recognition
on financial assets initially recognised during the reporting ☐ ☐ ☐
period
30 IFRS 7.35I EDTF 28 To enable users of financial statements to understand
the changes in the loss allowance disclosed in accordance
with paragraph 35H of IFRS 7 (see item 29 above), does
the entity provide an explanation of how significant
changes in the gross carrying amount of financial
instruments during the period contributed to changes
in the loss allowance. The information must be provided
separately for financial instruments that represent
the loss allowance as listed in paragraph 35H(a)–(c)
and must include relevant qualitative and quantitative
information. Examples of changes in the gross carrying
amount of financial instruments that contributed to
the changes in the loss allowance may include:
a. Changes because of financial instruments originated ☐ ☐ ☐
or acquired during the reporting period
b. The modification of contractual cash flows on financial
assets that do not result in a derecognition of those
☐ ☐ ☐
financial assets in accordance with IFRS 9
c. Changes because of financial instruments that were
derecognised (including those that were written-off)
☐ ☐ ☐
during the reporting period
d. Changes arising from whether the loss allowance is
measured at an amount equal to 12-month or lifetime
☐ ☐ ☐
ECL
31 IFRS EDTF 28 In addition to the reconciliation from the opening balance
7.B8D to the closing balance of the loss allowance, does the
entity provide a narrative explanation of the changes.
This narrative explanation may include an analysis of
the reasons for changes in the loss allowance during
the period, including: ☐ ☐ ☐
a. The portfolio composition
b. The volume of financial instruments purchased or
originated ☐ ☐ ☐
c. The severity of the ECL ☐ ☐ ☐

27
An entity must always measure the loss allowance at an amount equal to lifetime ECL for trade receivables or contract
assets that do not contain a significant financing component. For all lease receivables and any trade receivables and
contract assets that do contain a significant financing component the entity may choose, as its accounting policy, to
measure the loss allowance at an amount equal to lifetime ECL.

34
 Disclosure made
IFRS EDTF/BCBS
Item # Description Yes No N/A
Reference Reference
32 IFRS Does the entity disclose information about the changes
7.B8E in the loss allowance for financial assets separately from
those for loan commitments and financial guarantee
☐ ☐ ☐
contracts (for which the loss allowance is recognised as
a provision)

IFRS If a financial instrument includes both a loan (i.e., financial

7.B8E asset) and an undrawn commitment (i.e., loan
commitment) component and the entity cannot separately
identify the ECL on the loan commitment component from
those on the financial asset component, the ECL on the
loan commitment must be recognised together with the
loss allowance for the financial asset. To the extent that
the combined ECL exceed the gross carrying amount of
the financial asset, the ECL must be recognised as a
provision.

33 - EDTF 28 Does the entity provide a reconciliation of opening to

closing balances of non-performing or impaired loans in
the period, and the allowance for loan losses. Disclosure
should include an explanation of the effects of loan ☐ ☐ ☐
acquisitions on ratio trends and qualitative and
quantitative information about restructured loans
The reconciliation and explanation should disclose and
discuss
a. Transfer to lifetime ECL ☐ ☐ ☐
b. Transfer to credit-impaired financial assets ☐ ☐ ☐
c. Transfer to 12-month ECL ☐ ☐ ☐
d. Financial assets that have been derecognised during
the period (including write-off)
☐ ☐ ☐
e. New financial assets originated or purchased (or
another measure of increase in book size such as ☐ ☐ ☐
net increase/decrease)

f. Changes to models used for ECL calculation ☐ ☐ ☐

g. Changes in credit risk parameters (model inputs) ☐ ☐ ☐
h. Changes due to modification that did not result in
derecognition
☐ ☐ ☐
i. Others ☐ ☐ ☐
See Figure A of recommendation 28 of the EDTF ECL
Guidance, reproduced in the Appendix 2 to this checklist,
for an illustrative example of the reconciliation

EDTF 28 Given the nature of the process by which banks make

model changes, it might not always be feasible to provide
a precise split between the impact of model changes and
the impact of credit or economic risk parameter changes.
If an entity is able to distinguish this split at the reporting
date, then changes in risk parameters and models should
be separately disclosed in the allowance reconciliation.
Where an entity is unable to do this, separate disclosures
on the impact of material model changes should be
provided based on the information available, which may
not be at the reporting date. The disclosures around any
material model changes should explain the nature of the
change and why management chose to make the change.

35
 Disclosure made
IFRS EDTF/BCBS
Item # Description Yes No N/A
Reference Reference

Collateral disclosures

34 IFRS - To enable users of financial statements to understand

7.35K the effect of collateral and other credit enhancements
on the amounts arising from ECL, does the entity disclose
by class of financial instrument:
a. The amount that best represents its maximum
exposure to credit risk at the end of the reporting
period without taking account of any collateral
held or other credit enhancements (e.g., netting
agreements that do not qualify for offset in ☐ ☐ ☐
accordance with IAS 32)

IFRS 7.B9 - For a financial asset, the maximum exposure to credit risk
– B10 is typically the gross carrying amount, net of any amount
offset in accordance with IAS 32 and any loss allowance
recognised in accordance with IFRS 9.
Activities that give rise to credit risk and the associated
maximum exposure to credit risk include, but are not
limited to: (a) granting loans to customers and (b) placing
deposits with other entities. In these cases, the maximum
exposure to credit risk is the carrying amount of the
related financial assets.

b. A narrative description of collateral held as security

and other credit enhancements, including:
i. A description of the nature and quality of the ☐ ☐ ☐
collateral held
ii. An explanation of any significant changes
in the quality of that collateral or credit
enhancements as a result of deterioration
☐ ☐ ☐
or changes in the collateral policies of
the entity during the reporting period

iii. Information about financial instruments for

which an entity has not recognised a loss
☐ ☐ ☐
allowance because of the collateral
c. Quantitative information about the collateral held as
security and other credit enhancements (for example,
quantification of the extent to which collateral and ☐ ☐ ☐
other credit enhancements mitigate credit risk) for
financial assets that are credit-impaired at the
reporting date

IFRS - Paragraph 35K of IFRS 7 requires the disclosure of

7.B8F information that will enable users of financial statements
to understand the effect of collateral and other credit
enhancements on the amount of ECL. An entity is neither
required to disclose information about the fair value of
collateral and other credit enhancements nor is it required
to quantify the exact value of the collateral that was
included in the calculation of ECL (i.e., the loss given
default).

35 IFRS - Does the entity provide a narrative description of

7.B8G collateral and its effect on amounts of ECL, including
information about:
a. The main types of collateral held as security and ☐ ☐ ☐
other credit enhancements (examples of the latter
being guarantees, credit derivatives and netting
agreements that do not qualify for offset in
accordance with IAS 32)

36
 Disclosure made
IFRS EDTF/BCBS
Item # Description Yes No N/A
Reference Reference
b. The volume of collateral held and other credit
enhancements and its significance in terms of
☐ ☐ ☐
the loss allowance

c. The policies and processes for valuing and managing ☐ ☐ ☐

collateral and other credit enhancements

d. The main types of counterparties to collateral and ☐ ☐ ☐

other credit enhancements and their creditworthiness

e. Information about risk concentrations within ☐ ☐ ☐

the collateral and other credit enhancements

36 IFRS 7.36 - For all financial instruments within the scope of this IFRS,
but to which the impairment requirements in IFRS 9 are
not applied, does the entity disclose by class of financial
instrument:
a. The amount that best represents its maximum
exposure to credit risk at the end of the reporting ☐ ☐ ☐
period without taking account of any collateral held or
other credit enhancements (e.g., netting agreements
that do not quality for offset in accordance with
IAS 32); this disclosure is not required for financial
instruments whose carrying amount best represents
the maximum exposure to credit risk
b. A description of collateral held as security and other
credit enhancements, and their financial effect (e.g.,
quantification of the extent to which collateral and
other credit enhancements mitigate credit risk) ☐ ☐ ☐
in respect of the amount that best represents the
maximum exposure to credit risk (whether disclosed
in accordance with (a) or represented by the carrying
amount of a financial instrument)

37
Hedge accounting
Note that, when an entity has adopted IFRS 9 for classification and measurement, it must provide the updated
IFRS 7 hedge accounting disclosures even if it continues to apply IAS 39 for hedge accounting, as permitted
under IFRS 9.7.2.21.

Disclosure made
IFRS
Item # Reference Description Yes No N/A
General
1 IFRS Does the entity apply the hedge accounting disclosure requirements
7.21A included in paragraphs 21B–24F of IFRS 7 for those risk exposures that
an entity hedges and for which it elects to apply hedge accounting.
Hedge accounting disclosures must provide information about:
a. An entity’s risk management strategy and how it is applied to ☐ ☐ ☐
manage risk
b. How the entity’s hedging activities may affect the amount, timing ☐ ☐ ☐
and uncertainty of its future cash flows

c. The effect that hedge accounting has had on the entity’s statement
of financial position, statement of comprehensive income and ☐ ☐ ☐
statement of changes in equity

IFRS An entity must present the required disclosures in a single note or

7.21B separate section in its financial statements. However, an entity need
not duplicate information that is already presented elsewhere, provided
that the information is incorporated by cross-reference from the
financial statements to some other statement, such as a management
commentary or risk report that is available to users of the financial
statements on the same terms as the financial statements and at the
same time. Without the information incorporated by cross-reference,
the financial statements are incomplete.
IFRS When paragraphs 22A–24F of IFRS 7 require the entity to separate
7.21C by risk category the information disclosed, the entity must determine
each risk category on the basis of the risk exposures an entity decides
to hedge and for which hedge accounting is applied. An entity must
determine risk categories consistently for all hedge accounting
disclosures.
IFRS To meet the objectives in paragraph 21A of IFRS 7, an entity must
7.21D (except as otherwise specified below) determine how much detail
to disclose, how much emphasis to place on different aspects of
the disclosure requirements, the appropriate level of aggregation
or disaggregation, and whether users of financial statements need
additional explanations to evaluate the quantitative information
disclosed. However, an entity must use the same level of aggregation
or disaggregation it uses for disclosure requirements of related
information in this IFRS and IFRS 13 Fair Value Measurement.

The risk management strategy

2 IFRS Does the entity explain its risk management strategy for each risk
7.22A category of risk exposures that it decides to hedge and for which hedge
accounting is applied. This explanation should enable users of financial
statements to evaluate (for example): ☐ ☐ ☐
a. How each risk arises
b. How the entity manages each risk; this includes whether
the entity hedges an item in its entirety for all risks or hedges ☐ ☐ ☐
a risk component (or components) of an item and why
c. The extent of risk exposures that the entity manages ☐ ☐ ☐

38
 Disclosure made
IFRS
Item # Reference Description Yes No N/A
3 IFRS To meet the requirements in paragraph 22A of IFRS 7, does the entity
7.22B provide at least a description of:
a. The hedging instruments that are used (and how they are used) ☐ ☐ ☐
to hedge risk exposures
b. How the entity determines the economic relationship between
the hedged item and the hedging instrument for the purpose of ☐ ☐ ☐
assessing hedge effectiveness
c. How the entity establishes the hedge ratio and what the sources ☐ ☐ ☐
of hedge ineffectiveness are

4 IFRS When an entity designates a specific risk component as a hedged

7.22C item (see paragraph 6.3.7 of IFRS 9), does it provide, in addition
to the disclosures required by paragraphs 22A and 22B of IFRS 7,
qualitative or quantitative information about:
a. How it determined the risk component that is designated as
the hedged item (including a description of the nature of the ☐ ☐ ☐
relationship between the risk component and the item as a whole)

b. How the risk component relates to the item in its entirety (for
example, the designated risk component historically covered
on average 80 per cent of the changes in fair value of the item ☐ ☐ ☐
as a whole)
The amount, timing and uncertainty of future cash flows
5 IFRS Unless exempted by paragraph 23C of IFRS 7, does the entity disclose
7.23A by risk category quantitative information to allow users of its financial
statements to evaluate the terms and conditions of hedging instruments
☐ ☐ ☐
and how they affect the amount, timing and uncertainty of future cash
flows of the entity
6 IFRS To meet the requirement in paragraph 23A of IFRS 7, does the entity
7.23B provide a breakdown that discloses:
a. A profile of the timing of the nominal amount of the hedging ☐ ☐ ☐
instrument
b. If applicable, the average price or rate (for example strike or forward
prices, etc.) of the hedging instrument
☐ ☐ ☐
7 IFRS In situations in which an entity frequently resets (i.e., discontinues and
7.23C restarts) hedging relationships because both the hedging instrument
and the hedged item frequently change (i.e., the entity uses a dynamic
process in which both the exposure and the hedging instruments used
to manage that exposure do not remain the same for long — such as
in the example in paragraph B6.5.24(b) of IFRS 9), does the entity
disclose:
i. Information about what the ultimate risk management strategy is ☐ ☐ ☐
in relation to those hedging relationships
ii. A description of how it reflects its risk management strategy by
using hedge accounting and designating those particular hedging
☐ ☐ ☐
relationships
iii. An indication of how frequently the hedging relationships are
discontinued and restarted as part of the entity’s process in relation
to those hedging relationships ☐ ☐ ☐
Note that in the above circumstances, the entity is exempt from
providing the disclosures required by paragraphs 23A and 23B of IFRS 7
8 IFRS Does the entity disclose, by risk category, a description of the sources
7.23D of hedge ineffectiveness that are expected to affect the hedging
☐ ☐ ☐
relationship during its term
9 IFRS 7.23E If other sources of hedge ineffectiveness emerge in a hedging
relationship, does the entity disclose those sources by risk category
☐ ☐ ☐
and explain the resulting hedge ineffectiveness

39
 Disclosure made
IFRS
Item # Reference Description Yes No N/A
10 IFRS 7.23F For cash flow hedges, does the entity disclose a description of any
forecast transaction for which hedge accounting had been used
☐ ☐ ☐
in the previous period, but which is no longer expected to occur
The effects of hedge accounting on financial position and performance
11 IFRS Does the entity disclose, in a tabular format, the following amounts
7.24A related to items designated as hedging instruments separately by risk
category for each type of hedge (fair value hedge, cash flow hedge or
hedge of a net investment in a foreign operation):
a. The carrying amount of the hedging instruments (financial assets ☐ ☐ ☐
separately from financial liabilities)
b. The line item in the statement of financial position that includes
the hedging instrument
☐ ☐ ☐
c. The change in fair value of the hedging instrument used as
the basis for recognising hedge ineffectiveness for the period
☐ ☐ ☐
d. The nominal amounts (including quantities such as tonnes or
cubic metres) of the hedging instruments
☐ ☐ ☐
12 IFRS Does the entity disclose, in a tabular format, the following amounts
7.24B related to hedged items separately by risk category for the types of
hedges as follows:
a. For fair value hedges:
i. The carrying amount of the hedged item recognised in the
statement of financial position (presenting assets separately ☐ ☐ ☐
from liabilities)

ii. The accumulated amount of fair value hedge adjustments on

the hedged item included in the carrying amount of the hedged ☐ ☐ ☐
item recognised in the statement of financial position
(presenting assets separately from liabilities)
iii. The line item in the statement of financial position that includes
the hedged item
☐ ☐ ☐
iv. The change in value of the hedged item used as the basis
for recognising hedge ineffectiveness for the period
☐ ☐ ☐
v. The accumulated amount of fair value hedge adjustments
remaining in the statement of financial position for any hedged
items that have ceased to be adjusted for hedging gains and
☐ ☐ ☐
losses in accordance with paragraph 6.5.10of IFRS 928

b. For cash flow hedges and hedges of a net investment in a foreign

operation:
i. The change in value of the hedged item used as the basis for
recognising hedge ineffectiveness for the period (i.e., for
cash flow hedges, the change in value used to determine
the recognised hedge ineffectiveness in accordance with ☐ ☐ ☐
paragraph 6.5.11(c) of IFRS 929 )
ii. The balances in the cash flow hedge reserve and the foreign
currency translation reserve for continuing hedges that are ☐ ☐ ☐
accounted for in accordance with paragraphs 6.5.11 and
6.5.13(a) of IFRS 9
iii. The balances remaining in the cash flow hedge reserve and
the foreign currency translation reserve from any hedging
☐ ☐ ☐
relationships for which hedge accounting is no longer applied

28
The hedging gain or loss on the hedged item shall adjust the carrying amount of the hedged item (if applicable) and be
amortised to profit or loss if the hedged item is measured at amortised cost.
29
Any remaining gain or loss on the hedging instrument (or any gain or loss required to balance the change in the cash flow
hedge reserve calculated in accordance with paragraph 5.5.11(a) of IFRS9) is hedge ineffectiveness that shall be recognised
in profit or loss.

40
 Disclosure made
IFRS
Item # Reference Description Yes No N/A

IFRS The cash flow hedge reserve is adjusted to the lower of either the
9.6.5.11 cumulative gain or loss or the cumulative change in fair value (present
value) of the hedged item from inception of the hedge. The portion
that is offset by the change in the cash flow hedge reserve must be
recognised in other comprehensive income with any hedge
ineffectiveness recognised in profit or loss.
IFRS Hedges of a net investment in a foreign operation, including a hedge
9.6.5.13 (a) of a monetary item that is accounted for as part of the net investment
shall be accounted for similarly to cash flow hedges in that the portion
of the gain or loss on the hedging instrument that is determined to be
an effective hedge must be recognised in other comprehensive income
and the ineffective portion must be recognised in profit or loss.

13 IFRS Does the entity disclose, in a tabular format, the following amounts
7.24C separately by risk category for the types of hedges as follows:
a. For fair value hedges:
i. Hedge ineffectiveness i.e., the difference between the hedging ☐ ☐ ☐
gains or losses of the hedging instrument and the hedged item—
recognised in profit or loss (or other comprehensive income for
hedges of an equity instrument for which an entity has elected
to present changes in fair value in other comprehensive income
in accordance with paragraph 5.7.5 of IFRS 930)
ii. The line item in the statement of comprehensive income that
includes the recognised hedge ineffectiveness
☐ ☐ ☐
b. For cash flow hedges and hedges of a net investment in a foreign
operation:
i. Hedging gains or losses of the reporting period that were
recognised in other comprehensive income ☐ ☐ ☐
ii. Hedge ineffectiveness recognised in profit or loss ☐ ☐ ☐
iii. The line item in the statement of comprehensive income that
includes the recognised hedge ineffectiveness
☐ ☐ ☐
iv. The amount reclassified from the cash flow hedge reserve or
the foreign currency translation reserve into profit or loss as a
reclassification adjustment (see IAS 1) (differentiating between
amounts for which hedge accounting had previously been used,
☐ ☐ ☐
but for which the hedged future cash flows are no longer
expected to occur, and amounts that have been transferred
because the hedged item has affected profit or loss)
v. The line item in the statement of comprehensive income that
includes the reclassification adjustment (see IAS 1)
☐ ☐ ☐
vi. For hedges of net positions, the hedging gains or losses
recognised in a separate line item in the statement of ☐ ☐ ☐
comprehensive income (see paragraph 6.6.4 of IFRS 931)
14 IFRS When the volume of hedging relationships to which the exemption in
7.24D paragraph 23C applies is unrepresentative of normal volumes during
the period (i.e., the volume at the reporting date does not reflect the
☐ ☐ ☐
volumes during the period), does the entity disclose that fact and the
reason it believes the volumes are unrepresentative

30
Irrevocable election to present in other comprehensive income subsequent changes in the fair value of an investment in
an equity instrument.
31
The line item that relates to the hedged item itself (for example, revenue or cost of sales) remains unaffected.

41
 Disclosure made
IFRS
Item # Reference Description Yes No N/A
15 IFRS 7.24E Does the entity provide a reconciliation of each component of equity
and an analysis of other comprehensive income in accordance with
IAS 1 that, taken together:
a. Differentiates, at a minimum, between the amounts that relate
to the disclosures in paragraph 24C(b)(i) and (b)(iv) of IFRS 732 as
well as the amounts accounted for in accordance with paragraph ☐ ☐ ☐
6.5.11(d)(i) and (d)(iii) of IFRS 933
b. Differentiates between the amounts associated with the time value
of options that hedge transaction related hedged items and the
amounts associated with the time value of options that hedge time- ☐ ☐ ☐
period related hedged items when an entity accounts for the time
value of an option in accordance with paragraph 6.5.15 of IFRS 9;
and
c. Differentiates between the amounts associated with forward
elements of forward contracts and the foreign currency basis
spreads of financial instruments that hedge transaction-related
hedged items, and the amounts associated with forward elements ☐ ☐ ☐
of forward contracts and the foreign currency basis spreads of
financial instruments that hedge time-period related hedged items
when an entity accounts for those amounts in accordance with
paragraph 6.5.16 of IFRS 9

IFRS For transaction related hedged items the cumulative change in fair
9.6.5.1.15 value is either removed and included directly in the initial cost or other
carrying amount of the asset or the liability, reclassified to profit or loss
in the same period during which the hedged expected future cash flows
affect profit or loss or, if all or a portion of that amount is not expected
to be recovered in one or more future periods, the amount that is not
expected to be recovered must be immediately reclassified into profit
or loss.
For time-period related hedged items the amortisation amount must
be reclassified from the separate component of equity to profit or loss
unless the hedge accounting is discontinued, in which case, the net
amount that has been accumulated must be immediately reclassified
into profit or loss.
IFRS When an entity separates the forward element and the spot element
9.6.5.1.16 of a forward contract and designates as the hedging instrument only
the change in the value of the spot element of the forward contract,
or when an entity separates the foreign currency basis spread from
a financial instrument and excludes it from the designation of that
financial instrument as the hedging instrument.

16 IFRS 7.24F Does the entity disclose the information required in paragraph 24E of
IFRS 7 separately by risk category. This disaggregation by risk may be
☐ ☐ ☐
provided in the notes to the financial statements

32
The amount reclassified from the cash flow hedge reserve or the foreign currency translation reserve into profit or loss
as a reclassification adjustment.
33
The cash flow hedge reserve is adjusted to the lower of either the cumulative gain or loss or the cumulative change in fair
value (present value) of the hedged item from inception of the hedge. The portion that is offset by the change in the cash
flow hedge reserve must be recognised in other comprehensive income with any hedge ineffectiveness recognised in profit
or loss.

42
 Disclosure made
IFRS
Item # Reference Description Yes No N/A
Option to designate a credit exposure as measured at fair value through profit or loss
17 IFRS If an entity designated a financial instrument, or a proportion of it, as
7.24G measured at fair value through profit or loss because it uses a credit
derivative to manage the credit risk of that financial instrument, does
the entity disclose:
a. For credit derivatives that have been used to manage the credit
risk of financial instruments designated as measured at fair value
through profit or loss in accordance with paragraph 6.7.1of IFRS 9,
a reconciliation of each of the nominal amount and the fair value at ☐ ☐ ☐
the beginning and at the end of the period
b. The gain or loss recognised in profit or loss on designation of a
financial instrument, or a proportion of it, as measured at fair value ☐ ☐ ☐
through profit or loss in accordance with paragraph 6.7.1 of IFRS 9
c. On discontinuation of measuring a financial instrument, or a
proportion of it, at fair value through profit or loss, that financial
instrument’s fair value that has become the new carrying amount
in accordance with paragraph 6.7.4of IFRS 9 and the related
☐ ☐ ☐
nominal or principal amount (except for providing comparative
information in accordance with IAS 1, an entity does not need
to continue this disclosure in subsequent periods)

IFRS An entity may designate the financial instrument to the extent that it
9.6.7.1 is so managed (i.e., all or a proportion of it) as measured at fair value
through profit or loss if the name of the credit exposure matches the
reference entity of the credit derivative and the seniority of the financial
instrument matches that of the instruments that can be delivered in
accordance with the credit derivative.
IFRS When an entity discontinues measuring the financial instrument that
9.6.7.4 gives rise to the credit risk, or a proportion of that financial instrument,
at fair value through profit or loss, that financial instrument's fair value
at the date of discontinuation becomes its new carrying amount.

18 IFRS 7.28 In some cases, an entity does not recognise a gain or loss on initial
recognition of a financial asset or financial liability because the fair
value is neither evidenced by a quoted price in an active market for an
identical asset or liability (i.e., a Level 1 input) nor based on a valuation
technique that uses only data from observable markets (see paragraph
B5.1.2A34 of IFRS 9). In such cases, does the entity disclose, by class of
financial asset or financial liability:
a. Its accounting policy for recognising in profit or loss the difference
between the fair value at initial recognition and the transaction
price to reflect a change in factors (including time) that market
participants would take into account when pricing the asset or ☐ ☐ ☐
liability (see paragraph 5.1.2A(b) of IFRS 9)
b. The aggregate difference yet to be recognised in profit or loss at
the beginning and end of the period and a reconciliation of changes
☐ ☐ ☐
in the balance of this difference
c. Why the entity concluded that the transaction price was not the best
evidence of fair value, including a description of the evidence that
☐ ☐ ☐
supports the fair value

34
The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price.
However, if an entity determines that the fair value at initial recognition differs from the transaction price, the entity
must account for the instrument at either the quoted price in an active market for an identical asset or liability or based
on a valuation technique that uses only data from observable markets.

43
Appendix 1
The table below is an example of how an entity could provide credit quality disclosures for accounting
purposes on a similar basis to those in recommendation 15 of the EDTF 2012 report (see item 11 of the
Impairment section of the post-transition disclosures on page 29). The example is taken from the EDTF ECL
Guidance (page 17).

Using the same number of PD bandings as in the entity’s implementation of Figure 3 would allow sufficient
granularity of an individual entity’s loan portfolios by credit quality to facilitate comparison between entities
(as envisaged with the original EDTF recommendation) for their lending portfolios. Entities should determine
the appropriate bandings as necessary in order to convey the differences in credit quality across their lending
portfolios at a reporting date.

44
Appendix 2
The table below is an example of how an entity could provide a reconciliation of gross carrying amounts
and loss allowances in accordance with recommendation 28 of EDTF ECL Guidance (see item 33 of
the Impairment section of the post-transition disclosures on page 35). The example is taken from
the EDTF ECL Guidance (page 22).

The table is modelled on the example provided in IFRS 7.IG20B and therefore includes the gross carrying
amount of financial assets as part of the illustration in IFRS 7 and is not mandatory.

45
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46
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