IFRS 9 was introduced by the IASB in 2014 and became mandatory for fiscal years starting in 2018. It bears fundamental changes in the accounting requirements for financial instruments, especially in the areas of recognition, categorisation and measurement, impairment and loan loss provision. As...

The misapplication of the Statement of Financial Accounting Standards 133 in the U.S. Government-Sponsored Enterprises had obscured the first signals of trouble in mortgage securities. Still, regulators should have detected signals using their market value of equity measure, after statistical...