International Financial Reporting Standard - IFRS
The PBA Sub Committee on Accounting and Taxation held detailed discussions on the ‘IFRS 9 application instructions’, following which PBA sent a consolidated feedback to the State Bank of Pakistan. In its suggestions, PBA has also advised a deferment of the roll out date of IFRS 9 from January 2021 to January 2022.
In October of 2019, SBP had advised banks/DFIs/MFBs to start a parallel run of IFRS 9 and had issued the ‘IFRS 9 application instructions’ for this purpose. These instructions are meant to ensure a smooth, robust and consistent implementation of IFRS 9 across the banking sector and to achieve standardized practices with respect to the expected credit loss accounting.
SBP’s expectations from Financial Institutions (FIs) is that they exercise considerable judgment and/or elect to use simplifications and other practical expedients permitted under the Standard.
The ‘instructions’ which will be used by the FIs for all of their financial reporting, are meant only for parallel run purposes and are not to be considered as final guidelines for the purpose of the IFRS 9 application.
