On Feb. 9, PAK CB revised format of annual and interim reports.
PAK CB amend the existing format of annual financial statements of banks/DFIs and microfinance banks (MFBs) also the format of interim financial statements.
Follows PAK CB Jul 2022 implemented IFRS 9 for different banks, see #110365.
Amendments
All banks are directed to prepare their annual / interim financial statements on the revised formats, effective from Q1 of year 2023 or 2024 as per the asset size.
DFIs are required to adopt new formats with suitable modifications in line with their business nature, for annual/interim financial statements effective from Q1 2023.
All MFBs are directed to prepare their annual financial statements on the revised format, effective from the accounting year ending Dec. 31, 2024.
Apr. 2023 Effective Date
On Apr. 13, 2023, PAK CB announced decision regarding the implementation date.
Banks and DFIs with an asset size of PKR 500bn or above as of Dec. 31, 2022 have an extended implementation date for the standard from Jan. 1, 2023 to Jan. 1, 2024.
However, all other banks and MFBs will still implement the standard on Jan. 1, 2024.
During the transition period, banks/DFIs/MFBs must continue parallel run reporting.
Jul. 1, 2024 Loan for Women
On Jul. 1, 2024, PAK CB revised annual financial statement format for banks/DFIs, to require disclosure on loans disbursed to women, women-owned/managed enterprises.
This will be applied from statements for the accounting year ending Dec. 31, 2024.
Jul. 29, 2024 Extended Timeline
On Jul. 29, 2024, PAK CB issued circular regarding the implementation of IFRS 9.
Considering the issues being faced by banks/DFIs/MFBs regarding the implementation of IFRS 9 standard, it has been decided to extend the timelines of IFRS 9 application.
FIs are allowed to continue measuring unquoted equity securities at lower of cost or break-up value up to Dec. 31, 2024, but must start using fair value from Jan. 1, 2025.
Further, FIs may continue preparing financial statements based on the host country’s regulatory accounting practices until IFRS 9 is implemented in that jurisdiction.
FIs are allowed an extension up to Dec. 31, 2024 for developing the requisite models for calculating exposure at default for revolving products beyond the contractual date.
For the effective interest rate (EIR) method, FIs are allowed to use the existing practice for recognizing interest income on financial assets/liabilities up to Sep. 30, 2024, but must follow the method according to IFRS 9 with effect from Oct. 1, 2024.
Use modification accounting for asset/liabilities per IFRS 9 standard from Oct. 1, 2024.
FIs shall prepare time-bound plans for implementing the above requirements, duly approved by their board of directors, to ensure compliance with the extended timeline.
All other instructions on the IFRS 9 application instructions shall remain unchanged.
