Please refer to the BSD Circular No. 04 dated February 17, 2006 on the captioned subject.
2. In order to streamline and standardize disclosures of Islamic Banks/Islamic Banking Branches, it has been decided to introduce following changes in the ‘Statement of Financial Position’ and the relevant notes:
i. Islamic Banks
a. The head ‘Financings’ used by Islamic Banks in their Balance Sheet and the related note should be renamed as ‘Islamic Financing and Related Assets’.
b. All Financings, Advances (against Murabaha etc.), Inventories and any other related item(s) pertaining to Islamic modes of financing, presently being reported under ‘Other Assets’ or any other head, shall become part of the ‘Islamic Financing and Related Assets’.
c. The break-up of ‘Islamic Financing and Related Assets’ into Islamic modes of financing and their respective subdivision into Financings, Advances, Inventories and any other related item(s) shall be reported in the notes to financial statements.
ii. Islamic Banking Branches.
a. The disclosure for Islamic Banking Branches contained in Annexure-2 to the above mentioned Circular also stands amended on the above lines. The revised Annexure-2 is enclosed.
3. All Islamic Banks/Islamic Banking Branches are advised to comply with the above instructions while reporting their annual, half-yearly and quarterly financial statements.
4. These instructions shall be effective from December 31, 2012.
5. All other instructions on the subject shall remain unchanged.
Enclosure: Annexure-2