The
Presidents/ Chief Executives
All Banks/DFIs
Dear
Sirs/Madam,
REVALUATION
SURPLUS/DEFICIT
Please refer to BSD circular No. 10 dated 13th
July, 2004 and subsequent clarification issued vide BSD
Circular No.11 dated 4th August, 2004 on the above subject.
On the request of Pakistan Banks Association, it has been
decided to make the following amendments in the instructions
issued vide above-referred circulars:
i) The “Held to Maturity” securities shall be
carried at amortized cost and shall not be required to be
revalued. This will, however, be subject to the condition
that once a security is classified as “Held to Maturity”
no subsequent reclassification/shifting to “Available
for Sale” or “Held for Trading” categories
will be permissible.
ii) The term “permanent diminution” used in
BSD Circular No.10 dated 13th July, 2004 has been substituted
with “impairment”, which shall have the same
meaning as defined in the International Accounting Standards.
iii) Banks/DFIs shall complete the process of classification
of their existing investment portfolio into “Held
for Trading”, “Available for Sale” and
“Held to Maturity” categories by 30th September,
2004. All other instructions on the subject shall remain
unchanged.
Please
acknowledge receipt.