L'impairment dei crediti nelle banche: l'evoluzione dei principi contabili e le loro implicazioni organizzative e di bilancio

Translated title of the contribution: [Autom. eng. transl.] The impairment of loans in banks: the evolution of accounting principles and their organizational and budgetary implications

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

[Autom. eng. transl.] It was argued that the financial crisis was partly due to accounting standards: their inability to "recognize" in advance the assumptions of the crisis would have helped to prevent it from being forecast and, therefore, to allow better management by investors . Following this widespread perception, in the periods immediately following the outbreak of the financial crisis, many political and economic institutions recommended specific interventions to reform accounting principles, in particular those concerning credit intermediaries and financial instruments. In relation to loan provisions, the criticisms focused on the approach underlying the estimate of the Loan Loss Provisions (LLP), the so-called incurred loss approach, pivot of the impairment model adopted by IAS 39. The incurred loss approach was strongly criticized (i) in order not to allow credit recovery difficulties to be recognized in a timely manner and (ii) to be pathologically linked to the economic cycle, amplifying both positive and negative dynamics. Starting from these criticisms, the process of replacing IAS 39, which led the IASB to issue, after a complex five-year gestation period, took shape in 2014, the IFRS 9, whose entry into force is expected, except for early adoptions by individual intermediaries, starting from 2018. The contribution, starting from an analysis of the fundamental questions left unresolved by the impairment model of IAS 39, introduces the new approach envisaged by IFRS 9. Subsequently, analyzes the implications of the new standard on the estimate of provision levels, on earnings management practices and on the activity of the main organizational functions involved in the change.
Translated title of the contribution[Autom. eng. transl.] The impairment of loans in banks: the evolution of accounting principles and their organizational and budgetary implications
Original languageItalian
Title of host publicationI crediti deteriorati nelle banche italiane
Pages23-41
Number of pages19
Publication statusPublished - 2017

Keywords

  • IFRS 9
  • NPL
  • crediti
  • impairment

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