The Presidents / Chief Executives
All Banks/ DFIs

Dear Sirs / Madam,

 

REVISED FORMS OF ANNUAL FINANCIAL STATEMENTS

In terms of Section 34 of the Banking Companies Ordinance, 1962, the banks are required to prepare their annual accounts in the forms set out in the Second Schedule of the said Ordinance. The existing Second Schedule was last amended vide BSD Circular No.36 dated October 10, 2001. Since then, significant regulatory developments as well as many additions / amendments in the International Financial Reporting Standards have taken place. Most importantly, on the regulatory front, Basel II has necessitated enhanced disclosure requirements. At the same time, diversification of banking activities requires banks to be more risk focused and be subject to adequate market discipline.

2) Accordingly, in exercise of the powers, conferred upon it under Sub-Section 4 of Section 34 of the Banking Companies Ordinance, 1962, the State Bank of Pakistan has amended the existing forms of Accounts and Balance Sheet of banks. The revised forms of Balance Sheet, Profit & Loss Account, Statement of Changes in Equity and Cash Flow Statement, together with notes forming part thereof, are enclosed which will substitute the existing forms circulated vide BSD Circular No.36 dated October 10, 2001. All banks are directed to prepare their Annual Financial Statements on the revised forms, effective from the accounting year ending 31st December, 2006.

3) It has further been decided that in order to ensure certain minimum disclosure to stakeholders, the DFIs will also be required to adopt the enclosed forms with suitable modification(s) in line with their nature of business, to prepare their Annual Financial Statements effective from the accounting year ending 31st December, 2006.

Please acknowledge receipt.

Annexure

Note :
The Revised Forms can be accessed at http://www.sbp.org.pk/bsd/2006/index.htm