The incurred loss model of provisioning came under heavy criticism, as it resulted in too little provisions too late. In the midst of public backlash, the International Accounting Standards Board was faced with the need to review the provisioning methodology to make it more forward-looking. This triggered the development of the expected loss model under IFRS9. IFRS9 is a complex accounting standard.
It relates to financial instruments and requires great deal of understanding and application on the part of prudential supervisors and auditors of financial statements. Intricately connected to IFRS9 are two other accounting standards, namely IFRS7 (Financial Instruments: Disclosures) and IFRS13 (Fair value measurement of financial instruments). This seminar, I understand, covers important aspects of these three standards.