The State Bank of Pakistan (SBP) has amended the existing format of annual financial statements of banks and they have been directed to prepare their annual financial statements on the revised form, effective from the accounting year ending 31st December, 2018. In terms of Section 34 of the Banking Companies Ordinance, 1962, the banks are required to prepare their annual accounts in the forms set out in the Second Schedule of the aforesaid ordinance.
The existing Second Schedule was last amended vide BSD Circular No.04 dated February 17, 2006. Since then, significant regulatory developments as well as many additions/amendments to the International Financial Reporting Standards have taken place. Accordingly, in exercise of the powers, conferred under Sub-Section 4 of Section 34 of the Banking Companies Ordinance, 1962, the State Bank of Pakistan has amended the existing format of annual financial statements of banks.
The revised format of annual financial statements, together with notes forming part thereof, are enclosed which will substitute the existing forms circulated vide BSD Circular No. 04 of 2006 and other instructions on the subject from time to time. All banks have been directed to prepare their annual financial statements on the revised format, effective from the accounting year ending 31st December, 2018.
According to SBP, it has further been decided that in order to ensure certain minimum disclosure to stakeholders, DFIs will also be required to adopt the new forms with suitable modification(s) in line with their nature of business, to prepare their annual financial statements effective from the accounting year ending 31st December, 2018.
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