From Open Risk Manual


BCBS D401 is a document published by the Basel Committee on Banking Supervision on March 2017 in the Accounting and Auditing category.


Regulatory treatment of accounting provisions – interim approach and transitional arrangements.


The Basel Committee on Banking Supervision today released details of the interim regulatory treatment of accounting provisions and standards for transitional arrangements. These measures are in response to the forthcoming international accounting standards on expected credit loss provisioning.

Given the limited time until the effective date of IFRS 9 (which will take effect on 1 January 2018) the Committee will retain the current regulatory treatment of provisions under the Basel framework for an interim period. This will allow the Committee to consider more thoroughly the longer-term regulatory treatment of provisions. Jurisdictions may adopt transitional arrangements to smooth any potential significant negative impact on regulatory capital arising from the introduction of ECL accounting.

The Basel Committee thanks all those who contributed time and effort to express their views during the consultation process.

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