BoM revised the guideline on credit impairment measurement and income recognition for all deposit-taking financial institutions. The guideline outlines the minimum prudential requirements for asset classification, provisioning requirements, and income recognition. The guideline also attempts to provide references, wherever relevant, with the provisions of the accounting standard IFRS 9. The guideline shall come into effect as from January 01, 2020.
This guideline supersedes the guideline on credit impairment measurement and income recognition that was issued in November 2004 and amended in June 2005 and April 2016. Financial institutions are required to provide information to BoM on classification of assets and provisioning in the form and manner prescribed by BoM, no later than 20 working days after the last day of each quarter. Additional burden, if any, due to the prudential requirements in the guideline will be allowed to phase-in for one year from the date of implementation of this guideline, at the discretion of financial institutions.
Effective Date: January 01, 2020
Keywords: Middle East and Africa, Mauritius, Banking, IFRS 9, Reporting, Credit Risk, Expected Credit Loss, Provision for Expected Loss, NPLs, Regulatory Capital, BoM
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