FSO hosts PFRS 9 ECL forum for banks

FSO-hosts-PFRS-9-ECL-forum-for-banks
On 23 August 2016, the Financial Services Organization (FSO) team, led by FSO Leader Vicky Lee-Salas, hosted a forum on the PFRS 9 Expected Credit Loss (ECL) Model Implementation Considerations for Banks. Around 90 participants composed of Controllers, Chief Financial Officers, Internal Audit Heads, and Credit and Risk Management Officers of bank clients attended the event.

The forum focused on considerations for banks when implementing the new ECL model under PFRS 9, Financial Instruments, from the point of view of regulators and external auditors. The lectures included a discussion on the Securities and Exchange Commission’s (SEC) expectations on those charged with governance in ensuring a company’s compliance with the new financial reporting requirement – including areas of focus issued by the Global Public Policy Committee. The Bangko Sentral ng Pilipinas (BSP) presentation emphasized three important points in transitioning to the new ECL approach: an adequate documentation of decisions made, effective policies and processes, and control measures in the exercise of judgement and accounting estimates. In addition to the talk on accounting, operational, internal and external reporting, and risk management implications of applying the new standard, the speakers shared personal experiences and insights on the challenges of implementing PFRS 9.

The various talks were conducted by SEC Assistant Commissioner and General Accountant Atty. Emmanuel Artiza, BSP Managing Director of the Supervision and Examination Sub-Sector I Chuchi Fonacier, and EY Malaysia Head of Financial Services Assurance and Country Leader for Financial Accounting Advisory Services Hooi-Lam Chan.

The forum was organized by a core team comprising FSO Assurance Partners Vicky Lee-Salas and Janet Paraiso, Senior Directors Aidell Gregorio and Emmanuel Guelas, Manager Bryan Baes and Associate Director Faye Año.