Press Release
IFRS 9 Implementation
On behalf of the banking sector, PBA has proposed to SBP that the implementation of IFRS 9 for the tax year 2022 may be deferred for banks till the next quarter.
As per SBP’s circular dated July 05, 2021, IFRS 9 was made applicable on banks with effect from January 1, 2022. The circular had also issued draft guidelines for the parallel runs which were to be finalized, based on PBA input and results of the parallel runs, which was provided by PBA in November 2021.
In January 2022, the SBP had circulated for comments from PBA, draft amendments to the format for financial statements, including the disclosures. These were provided by PBA to SBP on January 28, 2022.
Subsequent to a telephonic discussion with Dr Inayat Hussain, Deputy Governor, SBP, Mr Tawfiq Husain, CEO/SG PBA, has sent him PBA’s proposal via email on June 28, 2022, reminding the DG, SBP that the banking sector is awaiting final implementation guidelines, along with the final format of the financial statements.
In the email communication, the CEO, PBA has reiterated that since the final guidelines and formats are still awaited, it will not be possible for the banking sector to incorporate the requirements of IFRS9 in the June 2022 financial statements.
Pointing out that in the absence of an extension/further communication from the SBP, the audit firms may qualify the upcoming financial statements.
The CEO PBA has requested the Deputy Governor to issue a circular extending the application date of IFRS 9 to after the June 30, 2022 financial statements.
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