QCB Issues Implementation Guidelines for IFRS 9
QCB issued IFRS 9 implementation guidelines in connection with Classification and Measurement of Financial Assets and Liabilities and Derivatives. The guidelines also specify the requirements of the transitional phase that precedes application. IFRS 9, which replaces IAS 39, becomes applicable from January 01, 2018.
The instructions of QCB obligate all conventional banks to prepare their financial statements in accordance with IFRS and any new amendments and issues thereon. The Islamic banks are also obligated to adopt the same standards where the guidelines of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) are not available. The financial statements and results of operations of banks will be significantly affected once the new IFRS 9 becomes effective. Banks shall comply with IFRS 9 transitioning rules and their impact on the disclosures of the banks' financial statements as at December 31, 2017.
The guidelines aim to develop a regulatory framework to assist QCB in its supervision and monitoring activities of the banks’ compliance with the application of IFRS 9 and adequacy of managing the risks of their financial assets. It also aims to limit the major differences and variances that could result from the banks' use of judgments and estimates during the interpretation of how IFRS 9 is applied. The guidelines impose a standard template for reporting the results of application to QCB to enhance its ability to read, compare, and analyze these results and to assess the risks of the banks' financial assets through successive periods of time at the level of each bank and the consolidated level of the banking system.
Related Link: IFRS 9 Guidelines (PDF)
Effective Date: January 01, 2018
Keywords: Middle East and Africa, Qatar, Banking, Accounting, IFRS 9, IAS 39, Reporting, QCB
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