Global Accounting Body Keeps Post-Financial Crisis Debt Standard

The International Accounting Standards Board is sticking with its latest approach to how banks and other lenders account for so-called bad debt, rejecting complaints about costs.

All 14 board members voted Tuesday against changing the general approach of a global financial reporting standard introduced in 2018 that requires banks to include an estimate of future losses from debt that cannot be repaid. Feedback from a post-implementation review found that the standard, known as IFRS 9 Financial Instruments, is generally working well in practice, despite some cost complaints.

The board issued its financial instruments accounting standard after the 2007-08 global financial ...