KARACHI: The State Bank of Pakistan (SBP) has decided to amend the existing format of annual financial statements of banks and issued a new format for to preparation of annual accounts.
In terms of Section 34 of the Banking Companies Ordinance, 1962, banks are required to prepare their annual accounts in accordance with the forms set out in the Second Schedule of the aforesaid Ordinance.
The existing Second Schedule was last amended on January 25, 2018. Since then, significant regulatory developments including implementation of IFRS 9 as well as many other additions / amendments in the International Financial Reporting Standards have taken place.
Accordingly, in exercise of the powers, conferred under Sub-Section 4 of Section 34 of the Banking Companies Ordinance, 1962, the SBP has decided to amend the existing format of annual financial statements of banks.
The revised format of annual financial statements, together with notes forming part thereof, has been issued and these will substitute the existing formats and other instructions issued on the subject issued from time to time.
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In addition, format of interim financial statements has also been revised in order to bring it in line with the revised annual financial statements format.
SBP has directed all banks to prepare their annual or interim financial statements on the revised formats, effective from the 1st quarter of year 2023 or 2024 as per their assets size communicated.
It has further been decided that in order to ensure certain minimum disclosures to stakeholders, the DFIs will be required to adopt the formats with suitable modification(s) in line with their nature of business, to prepare their annual/ interim financial statements effective from the 1st quarter of year 2023.
The State Bank has also decided to revise the financial statement formats of MFBs as significant regulatory developments including implementation of IFRS 9. 03 dated July 05, 2022 as well as many other additions / amendments in the International Financial Reporting Standards have taken place.
Accordingly, in exercise of the powers, conferred under Microfinance Institutions Ordinance, 2001, the State Bank of Pakistan has decided to amend the existing format of annual financial statements of MFBs.
All MFBs are directed to prepare their annual financial statements on the revised format, effective from the accounting year ending 31st December, 2024.
Moreover, State Bank has amended format of interim financial statements in order to bring it in line with the revised annual financial statements format.
These revised formats, together with notes forming part thereof, are also enclosed which will also be applicable from the 1st quarter of the year 2024.
Copyright Business Recorder, 2023