IFRS 9

The State Bank of Pakistan (SBP) has issued comprehensive guidance on the implementation of IFRS 9, a transformative accounting standard that reshapes the way financial institutions (FIs) manage and report their financial assets. These instructions emphasize a robust approach to Expected Credit Loss (ECL) modeling, asset classification, and impairment calculations, ensuring alignment with international standards […]

On July 29, 2024, the State Bank of Pakistan (SBP) issued the BPRD Circular No. 16 of 2024, which provides crucial updates for financial institutions concerning IFRS 9 implementation. The circular specifically focuses on enhancing financial reporting accuracy, risk management, and aligning Pakistan’s banking practices with global standards. Key elements include: These updates are essential […]

IFRS 9, introduced by the International Accounting Standards Board (IASB), represents a significant shift in financial reporting by replacing the incurred loss model with the Expected Credit Loss (ECL) model. The ECL model requires financial institutions to forecast potential credit losses and recognize them in financial statements earlier, even before a loss event has occurred. […]

The introduction of the International Financial Reporting Standard 9 (IFRS 9) marked a significant shift in the financial reporting landscape for all financial institutions, including Microfinance Institutions (MFIs) and Microfinance Banks (MFBs). IFRS 9, which focuses on the classification, measurement, and impairment of financial instruments, aims to enhance transparency and accuracy in financial reporting. However, […]

In a landmark development for the microfinance sector, FineIT Pvt Limited has entered into a strategic partnership with the Pakistan Microfinance Network (PMN) and its subsidiary, Munsalik, to deliver an advanced IFRS 9 compliance solution specifically tailored to the needs of microfinance institutions across Pakistan. This collaboration is a significant step forward in strengthening the […]

IFRS 9, Financial Instruments, represents a significant shift in accounting for financial instruments, impacting organizations across various industries. Effective from January 1, 2018, IFRS 9 replaces IAS 39 and introduces a new approach to the classification, measurement, impairment, and hedge accounting of financial assets and liabilities. This article aims to address the most common queries […]

To expand on the topic of Significant Increase in Credit Risk (SICR) and its implications under IFRS 9, I will provide a more detailed analysis that builds on the existing article, emphasizing both the quantitative and qualitative indicators, the importance of continuous monitoring, and practical challenges in real-world applications. Expanded Analysis on SICR and Transition […]

Nepal’s financial sector has taken a significant leap forward by adopting International Financial Reporting Standard 9 (IFRS 9), a move that aligns the country with global accounting standards and enhances its economic credibility. This adoption is a crucial step towards promoting transparency, stability, and growth in Nepal’s economy. Benefits of IFRS9 Adoption in Nepal Challenges […]

The State Bank of Pakistan (SBP) has a history of announcing deadlines for the implementation of International Financial Reporting Standard (IFRS) 9, only to extend them later. This ongoing process has been a subject of discussion and debate within the Pakistani financial sector. A Timeline of Deadlines The Importance of IFRS 9 Implementation IFRS 9 […]

The financial landscape across Europe has been shaped by a series of unprecedented challenges over the past few years, with economic uncertainty and evolving regulations continuing to impact the banking sector. The 2024 Benchmark Study on the Financial Reporting of European Banks provides an insightful analysis of how these institutions have managed expected credit losses […]