Problems of Harmonization of the Principles of Impairment Losses on Loans and Advances of the Bank in the IAS and National Regulations

Making impairment losses on loans and advances is difficult and multifaceted issue. The difficulty in making impairment loss of receivables credit appears at the beginning, because it is the difference in terminology - national standards dictate create provisions for loans and advances, and the International Accounting Standards require to create impairment loss of receivables following an impairment test previously values. Each bank applying IAS should evaluate all their loans and the risk for impairment, IAS, however, do not offer a model for calculating impairment of loans and advances. In the creation of impairment losses on loans and advances of the institution plays a huge role Polish Financial Supervision Authority, as it may allow the creation of copies at a different rate based on the credit risk model in accordance with the provisions of International Accounting Standards. In view of the fact that international accounting standards do not specifically formulate these models, banks can use the so-called method of internal ratings, formulated by Resolution No. 10/2010 in the wake of the FSA provisions of the New Basel Capital Accord of the Basel Committee on Banking Supervision (BASELL 2). There are also problems of harmonization of accounting rules and tax laws, as all banks for bank reporting, as well as defining the base, must comply with the provisions of Polish law - Regulation of the Minister of Finance in 2008.