The Accounting Standard Board with the objective to facilitate Non-Banking Finance Companies (NBFCs) in the implementation and transition to IFRS 9, Financial Instruments, has developed the Accounting Guidance ‘Application of IFRS 9 by Non-Banking Finance Companies’.  

This Accounting Guidance aims to assist NBFCs in developing consistent understanding and effective application of IFRS 9, and discusses key areas of IFRS 9, including:

• Classification and measurement of financial assets and financial liabilities;
• Application of Expected Credit Loss (ECL), and interaction of ECL with the time-based classification and provisioning requirements provided in the Non-Banking Finance Companies and Notified Entities Regulations 2008; and
• Disclosure requirements.

You can also access the publication at http://www.icap.net.pk/files/pdf/acguidancetools/Accounting-Guidance-Application-IFRS-9-NBFCs.pdf

The Accounting Standards Board with objective to ensure consistent application of financial reporting framework also provides implementation support to the stakeholders. In context of IFRS 9 application by NBFCs, Accounting Standards Board would welcome the opportunity to respond to the emerging accounting issues raised by the stakeholders.

Circular 2  Accounting Guidance – Application of IFRS 9 by Non-Banking Finance Companies