AVN 65.45 Increased By ▲ 0.50 (0.77%)
BAFL 30.65 Decreased By ▼ -0.86 (-2.73%)
BOP 4.83 Increased By ▲ 0.04 (0.84%)
CNERGY 3.72 Decreased By ▼ -0.12 (-3.13%)
DFML 14.26 Decreased By ▼ -0.15 (-1.04%)
DGKC 41.06 Decreased By ▼ -0.54 (-1.3%)
EPCL 46.56 Decreased By ▼ -0.14 (-0.3%)
FCCL 11.35 Increased By ▲ 0.06 (0.53%)
FFL 5.03 Decreased By ▼ -0.02 (-0.4%)
FLYNG 5.78 Decreased By ▼ -0.04 (-0.69%)
GGL 10.28 Decreased By ▼ -0.17 (-1.63%)
HUBC 67.03 Increased By ▲ 1.39 (2.12%)
HUMNL 5.68 Increased By ▲ 0.02 (0.35%)
KAPCO 27.85 Increased By ▲ 0.10 (0.36%)
KEL 2.19 Increased By ▲ 0.04 (1.86%)
LOTCHEM 24.83 Increased By ▲ 0.48 (1.97%)
MLCF 21.37 Decreased By ▼ -0.11 (-0.51%)
NETSOL 84.20 Decreased By ▼ -0.59 (-0.7%)
OGDC 85.94 Decreased By ▼ -1.31 (-1.5%)
PAEL 11.01 Increased By ▲ 0.03 (0.27%)
PIBTL 4.17 Decreased By ▼ -0.05 (-1.18%)
PPL 74.56 Decreased By ▼ -1.14 (-1.51%)
PRL 13.40 Decreased By ▼ -0.25 (-1.83%)
SILK 0.92 Increased By ▲ 0.03 (3.37%)
SNGP 40.44 Decreased By ▼ -0.89 (-2.15%)
TELE 5.86 Increased By ▲ 0.01 (0.17%)
TPLP 15.42 Decreased By ▼ -0.22 (-1.41%)
TRG 111.63 Decreased By ▼ -0.07 (-0.06%)
UNITY 13.76 Decreased By ▼ -0.22 (-1.57%)
WTL 1.14 Decreased By ▼ -0.02 (-1.72%)
BR100 4,037 Decreased By -26.9 (-0.66%)
BR30 14,412 Decreased By -56.6 (-0.39%)
KSE100 40,471 Decreased By -262.4 (-0.64%)
KSE30 15,163 Decreased By -67.2 (-0.44%)
Follow us

KARACHI: The State Bank of Pakistan (SBP) has issued final instructions for implementation of the International Financial Reporting Standard 9, or IFRS 9, in the banking sector.

In line with international best practices, SBP has issued final instructions on IFRS 9 for ensuring its smooth and consistent implementation in the banking industry, including banks/ DFIs/ MFBs, with revised implementation timelines. The SBP has now decided to extend the implementation date of IFRS 9 from January 1, 2022.

For banks having assets of PKR 500 billion or above, as per their annual financial statements and as of December 31, 2021, and for all Development Financial Institutions (DFIs), SBP has set the revised implementation date as January 1, 2023. For all other banks and Microfinance Banks (MFBs), SBP has extended the implementation deadline of IFRS 9 to January 1, 2024.

Earlier, SBP had set the implementation deadline for banks as January 1, 2022, which has now been revised on the request of the banks that are facing challenges in implementing the new standard.

FSR for CY21 unveiled: Financial system has performed well: SBP

SBP has been consulting with the banking industry since early 2018 for the adoption of IFRS 9 in Pakistan. The IFRS 9 is a global standard issued by the International Accounting Standards Board. The standard lays out the accounting treatment of classification, measurement of financial instruments and impairment of financial assets.

With the implementation of IFRS 9, the existing provisioning requirement, following incurred loss approach, will be replaced by Expected Credit Loss Provisions that will be based on expected losses on performing as well as non-performing portfolios. This approach is forward-looking and effectively measures the loan loss provisions based on credit risk models.

Copyright Business Recorder, 2022

Comments

Comments are closed.

Implementation of IFRS 9: SBP issues final instructions

At least five injured in explosion near Quetta Police Lines

Pakistan expresses unflinching support for Kashmiris on Solidarity Day

China's oil demand bounce may push producers to reconsider output: IEA

Foreign authorities seeking properties/bank accounts info: FBR won’t intimate concerned taxpayer about request

Maryam says PTI chief Imran should be thrown out of politics

Qatar sends envoy to Afghan capital to meet with Taliban

Qatar airport aims to beat passenger record

UK's shortest-serving PM Liz Truss blames economic 'orthodoxy' for downfall

Saudi non-oil private sector activity jumps in January on higher output, orders

India to ban Chinese-linked betting and loan lending apps