IFRS for Banks

IFRS for Banks: ECL Overlays, SPPI Testing, Modifications, Write-Offs, Collateral, and Disclosure Tasks provides a practical and technically rigorous guide to financial instrument accounting in banking under IFRS 9 and IFRS 7.

Designed for accountants, auditors, bankers, risk professionals, finance managers, regulators, students, and researchers, the book connects accounting requirements with the credit decisions, models, contractual terms, and controls found inside financial institutions.

Coverage begins with IFRS 9 classification and measurement. Readers examine business model assessment, amortised cost, fair value through other comprehensive income, fair value through profit or loss, and the SPPI test for contractual cash flows. Detailed discussion addresses complex lending features, prepayment clauses, extension options, non-recourse arrangements, structured debt, securities, treasury assets, and contractual features associated with SPPI failure.

The expected credit loss framework receives extensive treatment. Stage 1, Stage 2, and Stage 3 assessment connects with significant increases in credit risk, default, credit impairment, cure, and forward-looking information. Practical analysis explains probability of default, loss given default, exposure at default, lifetime ECL, economic scenarios, management overlays, model adjustments, validation, governance, and documentation.

Loan restructuring receives dedicated coverage. The book explains contractual modifications, substantial and non-substantial changes, derecognition decisions, modification gains and losses, original and revised effective interest rate considerations, distressed restructuring, forbearance, payment holidays, maturity extensions, principal concessions, and revised repayment profiles.

Write-offs and recoveries receive separate analysis so readers distinguish accounting removal from legal forgiveness, settlement, derecognition, and continued enforcement. Collateral chapters address residential and commercial property, cash security, securities, guarantees, lien ranking, recovery costs, liquidation discounts, recovery timing, wrong-way risk, and the effect of credit protection on LGD and ECL.

IFRS 7 disclosure receives equal attention. The book examines ECL reconciliations, stage movements, loss allowance tables, credit quality grades, collateral disclosure, modified financial assets, write-offs under continuing enforcement, credit concentrations, model assumptions, forward-looking information, and management judgement.

Applied banking cases connect the technical rules with financial statement review. Worked scenarios cover corporate loans, residential mortgages, commercial property, revolving facilities, unsecured consumer portfolios, Stage 3 recovery scenarios, distressed debt acquisitions, sovereign bonds, loan sales, government guarantees, and portfolio-wide ECL movements.

Readers also receive a structured framework for reviewing bank financial statements. The analysis links Stage 2 and Stage 3 ratios, coverage ratios, modification losses, write-offs, collateral values, management overlays, economic scenarios, and credit rating migration with the underlying accounting evidence.

IFRS for Banks is written for readers seeking a focused bridge between financial reporting and banking credit risk. Its emphasis on applied cases, disclosure tasks, model governance, audit evidence, and internal controls makes it suitable for professional reference, postgraduate study, executive education, audit preparation, banking training, and IFRS-focused financial analysis.