Please
refer to Rule No. 14 of Rules of Business for NBFIs and BSD
Circular No.20 dated 4th August, 2000 containing instructions
on classification of advances and mark to market respectively.
The
NBFIs have been representing to the State Bank of Pakistan
about the difficulties being faced by them in the implementation
of the International Accounting Standard (IAS) 39 and have
been requesting to defer its implementation. The Institute
of Chartered Accountants of Pakistan has also recommended
for deferment of the said Standard. Similarly, there are also
some issues to be sorted out to prepare the NBFIs for implementation
of International Accounting Standard 40.
In
order to facilitate the NBFIs, it has been decided that the
State Bank’s Rules of Business for NBFIs and other instructions
will prevail over the provisions of IAS 39, till further instructions.
Similarly, NBFIs would adopt provisions of IAS 40 once the
issues involved in their implementation are sorted out and
decision in the matter is communicated to them by the State
Bank. Meanwhile, NBFIs are advised to review their internal
systems and procedures to prepare themselves for full implementation
of these standards in due course.
Please
acknowledge receipt.
|