SBP extends IFRS 9 implementation date for DFIs to January 2024

April 13, 2023 (MLN): The State Bank of Pakistan (SBP) has extended the implementation date for International Financial Reporting Standard 9 (IFRS 9) for banks with an asset size of Rs500 billion or above as of December 31, 2022, and all Development Finance Institutions (DFIs) to January 01, 2024, according to a circular letter issued to the Presidents/ Chief Executives of all Banks/DFIs / Microfinance Banks (MFBs). 

The implementation date for all other banks and MFBs will remain the same i.e. January 01, 2024.

This decision was taken based on feedback from relevant stakeholders. During the transition period, banks and DFIs will continue their parallel run reporting, as early adoption of the Standard is encouraged.

"During the transition period, banks/DFIs/MFBs shall continue with their parallel run reporting as per the specified timelines. Nevertheless, early adoption of the Standard is encouraged," the circular read.

Further, the preparation of the annual/interim financial statements on the revised formats by banks and DFIs has also been extended to the 1st quarter of the year 2024.

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