PRA Dear CFO letter sets out findings from review of IFRS 9 ECL and climate risk

Article summary

The Prudential Regulation Authority has sent a Dear CFO letter to firms in scope of written auditor reporting, setting out feedback from its thematic review of accounting for IFRS 9 expected credit losses (ECL) and climate risk. The PRA has asked for auditors’ views on progress made in 2023 to adopt the ‘high quality practices’ for ECL set out in the PRA’s letters of 2 October 2019 and on 11 October 2022. Annexes to the letter set out areas of focus going forward.