Accounting regulation

This guide suggests practices and examples of specific accounting and auditing issues and questions that supervisors need to consider when monitoring and reviewing banking sector financial statements. It aims to enable prudential supervisors to form an understanding of a bank’s business drivers, risks and critically evaluate the quality of financial assets and the related provisions for credit losses using IFRS financial statements. It also lists regulatory areas which are connected with accounting requirements which supervisors may investigate further when reviewing financial statements.

This study is available in both English and Polish and includes an analysis of domestic and international accounting standards applicable to business combinations. It also features a review of literature available on the subject as well as practical information and case studies. In conclusion, the report proposes enhancements to existing legislation to ensure compliance with EU laws and regulations, in particular with Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements.

This paper addresses challenges to the successful implementation of international accounting and auditing standards which have been observed by the World Bank when carrying out the Report on the Observance of Standards and Codes (ROSC) accounting and auditing assessments.

Three of eight lessons learned (from the executive summary):