BPRD
Circular Letter No. 05 of 2016 |
February 29, 2016 |
The Presidents/ CEOs,
Islamic Banks/All Banks operating Islamic Banking Branches
Dear
Sir / Madam,
Revised Forms of Annual Financial Statements
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Please refer to BSD Circular No. 4 of 2006 and BSD Circular Letter No. 03 of 2013 on the captioned subject.
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2. |
Islamic Financing and Related Assets:
It has been observed that some banks having Islamic Banking Branches (IBBs) are reporting the related assets of Islamic Financing in their overall periodic financial statements under different heads i.e. Other Assets and Operating Fixed Assets. In order to standardize the financial statements and to bring comparability, the banks having IBBs are advised to show Islamic Financing and Related Assets under the head of “Advances” in their financial statements. Accordingly, the Note 10 (Advances) of Notes to Financial Statements given in BSD Circular No. 4 of 2006 has been revised as per enclosed format. In addition to this, banks are required to provide detailed information for each of the Islamic modes of Financing in Annexure-2 of the aforesaid Circular along with provision held there against. The revised Annexure-2 is enclosed.
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3. |
Bai Muajjal of Government of Pakistan Ijara Sukuk:
The banks are advised to show the Bai Muajjal of captioned Sukuk with State Bank of Pakistan and other Financial Institutions under the Head “Lendings to Financial Institutions (Note 8)” as per the enclosed format. However, Bai Muajjal transaction with Government of Pakistan will be reported under investment category as other Federal Government securities.
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4. |
These instructions shall be effective immediately and all other instructions on the captioned subject remain unchanged.
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Please acknowledge receipt. |
Encl: (2) |
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Sincerely,
S/d-
(Shaukat Zaman)
Director
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