FineIT: Leading IFRS 9 ECL Software Solutions in Pakistan
Introduction IFRS 9 Financial Instruments, issued by the International Accounting Standards Board (IASB), represents one of the most significant accounting standard reforms in recent years. It replaced IAS 39, bringing major improvements in the classification, measurement, impairment, and hedge accounting of financial instruments. This article serves as the first in a comprehensive training series designed […]
Understanding Shariah-Compliant IFRS 9 The financial world has witnessed a significant shift as Islamic financial institutions increasingly adopt international accounting standards while ensuring alignment with Shariah principles. One of the most crucial of these standards is IFRS 9 complince software – Financial Instruments, which addresses the classification, measurement, and impairment of financial assets. However, applying […]
Date: July 2025 The European Union has formally adopted the IASB’s recent amendments to IFRS 9 and IFRS 7, addressing key challenges around nature-dependent electricity contracts, such as those commonly found in power purchase agreements (PPAs) tied to renewable energy. These changes mark a significant step in improving how such contracts are accounted for under […]
IFRS 9 — the International Financial Reporting Standard for financial instruments — is a globally adopted framework that significantly impacts banks and financial institutions. In the Gulf Cooperation Council (GCC) region, compliance with IFRS 9 is not just a technical requirement but a strategic necessity, enforced under the watchful supervision of central banks like SAMA, […]
1. Why this matters RIGHT NOW The IASB has issued narrowly scoped but significant amendments to IFRS 9 (Classification & Measurement) and IFRS 7 (Disclosures), effective January 1, 2026, with early adoption permitted. They stem from the post‑implementation review (PIR) of IFRS 9 and aim to clarify sticky areas like ESG-linked features and electronic settlements. 2. Major […]
In today’s evolving regulatory and ethical landscape, Islamic financial institutions are under increasing pressure to implement international accounting standards such as IFRS 9 while remaining fully compliant with Shariah principles. At FineIT, we have always believed that compliance, innovation, and faith-based finance can coexist harmoniously. Building on the success of our widely adopted Estimator9, we […]
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, […]
