Risk glossary


IAS 39

IAS 39 is an accounting standard published by the International Accounting Standards Board that covers the recognition and measurement of financial instruments. It was replaced by IFRS 9 in 2018.

Under IAS 39, banks would set aside losses for assets only at the point of impairment, the so-called ‘incurred loss’ model. Because banks used past events to determine provisions, the regime was perceived as fuelling procyclicality after the global financial crisis.

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