Regulatory Alerts2024-02-01
On Accrued Receivables and Payables
The Central Bank of Djibouti mandates that microfinance institutions identify and record accrued interest receivable and payable on transactions with financial entities, members, and clients at the end of each financial year. The directive requires that such accrued interest be classified under specific balance sheet sub-categories for receivables or payables once recognized in the profit and loss statement. Furthermore, interest on non-performing receivables must be excluded from accounting records and tracked off-book in compliance with Instruction No. 2022-09 regarding loan downgrading and provisioning.
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