Month: July 2024

The State Bank of Pakistan’s (SBP) recent decision to extend the implementation deadline for International Financial Reporting Standard (IFRS 9) has drawn mixed reactions from the financial sector. While the extension provides temporary relief to banks and financial institutions (FIs), it raises questions about the long-term implications for financial reporting transparency and consistency in Pakistan. […]

The International Accounting Standards Board (IASB) is a global organization dedicated to developing a single set of high-quality, understandable, and enforceable financial reporting standards – the International Financial Reporting Standards (IFRS). These standards aim to bring about transparency, accountability, and efficiency in financial reporting across the globe. An important aspect of maintaining the effectiveness of […]

The International Financial Reporting Standard 9 (IFRS 9) has transformed the way companies assess and report credit losses. A key aspect of IFRS 9 is the Expected Loss (EL) model, which requires companies to estimate credit losses over the entire life of a financial instrument. While this approach improves transparency and risk management, it can […]

The financial world is undergoing a significant shift, with environmental, social, and governance (ESG) factors playing a growing role in decision-making. This trend extends to loan assessments, where traditional financial metrics are being complemented by a focus on a company’s ESG performance. IFRS 9 and the ESG Challenge The International Financial Reporting Standard 9 (IFRS […]

Environmental, social, and governance (ESG) considerations are becoming increasingly important for businesses. As a result, companies are issuing more financial instruments with ESG-linked features. These features can link the financial performance of the instrument to the achievement of sustainability goals. The International Financial Reporting Standard (IFRS 9) is a set of accounting standards that deals […]