From Open Risk Manual


BCBS D311 is a document published by the Basel Committee on Banking Supervision on February 2015 in the Accounting and Auditing category.


Guidance on accounting for expected credit losses.


The consultative document outlines supervisory expectations regarding sound credit risk practices associated with implementing and applying an expected credit loss (ECL) accounting framework.

In June 2006, the Basel Committee issued supervisory guidance on Sound Credit Risk Assessment and Valuation for Loans to address how common data and processes related to loans may be used for assessing credit risk, accounting for loan impairment and determining regulatory capital requirements. This document replaces the Committee's June 2006 guidance which was based on the incurred-loss model of accounting.

With the global transition to an ECL accounting framework, the Committee is updating its guidance. The Committee recognises that differences exist between ECL accounting frameworks across jurisdictions. The revised guidance aims to promote high-quality, robust and consistent implementation of ECL accounting frameworks across all jurisdictions.

The guidance sets forth supervisory expectations for ECL accounting that are consistent with the applicable accounting standards established by the IASB and other standard setters. Moreover, the paper presents the Committee's view of the robust application of those standards, including circumstances in which the Committee expects internationally active banks to limit their use of particular simplifications and/or practical expedients included in the relevant accounting standards.

Comments on this consultative document should be uploaded here by 30 April 2015. Comments will be published on the website of the Bank for International Settlements unless a respondent specifically requests confidential treatment.

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