July 06, 2022 (MLN): State Bank of Pakistan (SBP) on Tuesday announced the effective date of implementation of the International Financial Reporting Standards 9 (IFRS 9) for banks having asset size of Rs500 billion or above from January 1, 2023.
According to the circular issued by SBP, the banks having asset size of Rs500 billion or above as per their Annual Financial Statements of December 31, 2021, the effective date of implementation starts from January 1, 2023. The same implementation date is applicable for all Development Finance Intuitions (DFIs).
In line with best international practices, the central bank has developed “IFRS 9 application instructions” for ensuring smooth, smooth and consistent implementation of the standard in the banks/DFIs/MFBs.
Moreover, it has been decided to extend the implementation date of IFRS 9 from January 01, 2022. While, the effective date of implementation for all other banks and Microfinance Banks (MFBs) is January 1, 2024.
Nevertheless, early adoption of the standard is permissible, it added.
The instructions, as per the SBP’s circular, during the transition period, the FIs are required to submit IFRS 9 Pro-forma Annual Financial Statement(s) for the year ending 2022 within four months of the year-end.
In addition, FIs are requested to submit IFRS 9 Pro-forma quarterly and half-yearly financial statements for the years 2022 and 2023 within two months of the end of the respective period.
