Islamic banks’ reporting standards amended

Changes notified to standardise practices.

ISLAMABAD: In order to streamline and standardise disclosures of Islamic banks, the State Bank of Pakistan (SBP) decided to introduce certain changes in the ‘Statement of Financial Position’ and the relevant notes.

According to a statement of the central bank issued Tuesday after making certain changes, the head ‘Financings’ used by Islamic banks in their balance sheet and the related note should be renamed as ‘Islamic Financing and Related Assets’.

All financings, advances, inventories and any other related items 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’.

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 items shall be reported in the notes to financial statements. All Islamic banks/windows are advised to comply with laid procedures while reporting annual, semi-annual and quarterly financial statements.

Published in The Express Tribune, January 23^rd, 2013.

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