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2019-08-28

Guideline No. 10/2019 of August 28

The National Bank of Angola issued Guideline No. 10/2019 to amend points 7.3 and 8.2 of its August 2016 lease guidance, aligning lessor accounting for finance and operating leases with impairment analysis requirements under IFRS 9. The revised provisions mandate that receivables from finance leases and operating lease values recorded in the balance sheet undergo impairment assessment throughout the contract term, consistent with Guideline No. 08/2019 on credit portfolio impairment losses. Financial institutions must achieve full compliance within 180 days of publication, with the National Bank of Angola retaining authority to resolve any interpretative doubts or omissions.

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GUIDELINE NO. 10/2019 of August 28 SUBJECT: LEASES

  • Amendment to the wording of points 7.3 and 8.2 of Guideline No. 08/16 of August 08 Considering the entry into force on January 1, 2018 of International Financial Reporting Standard 9 – Financial Instruments, which replaced International Accounting Standard 39 – Financial Instruments: Recognition and Measurement; Given the need to adapt Guideline No. 08/2016, of August 08, on leases, with respect to points 7.3 and 8.2 of the aforementioned Guideline; Considering that this Guideline does not intend to provide any interpretations of International Accounting Standards/International Financial Reporting Standards, which are issued by the International Accounting Standards Board (IASB) and developed exclusively by the IFRS Interpretations Committee; In exercise of the powers conferred upon me by the combined provisions of Article 21 and Article 51, both of Law No. 16/10 of July 15 – Law of the National Bank of Angola, and Article 93 of Law No. 12/15 of June 17 – Framework Law for Financial Institutions. DETERMINE:
  1. Amendment to the Wording The wording of points 7.3 and 8.2 of Guideline No. 08/2016, of August 08, is amended to read as follows:

CONTINUATION OF GUIDELINE NO. 10/2019 Page 2 of 2 “7. Lessor’s Perspective – Finance Leases 7.3. Receivables arising from finance lease transactions must be subject to impairment analysis during the contract term, as established in Guideline No. 08/2019 on impairment losses for the credit portfolio. 8. Lessor’s Perspective – Operating Leases 8.2. Receivable amounts related to operating leases recorded in the balance sheet must be subject to impairment analysis, as established in Guideline No. 08/2019 on impairment losses for the credit portfolio.

  1. Transitional Provision Institutions must comply with the provisions of this Guideline within 180 (one hundred and eighty) days following its publication.
  2. Doubts and Omissions Doubts and omissions resulting from the interpretation of this Guideline are resolved by the National Bank of Angola.
  3. Entry into Force This Guideline enters into force on the date of its publication. PUBLISH. Luanda, August 28, 2019. THE GOVERNOR JOSÉ DE LIMA MASSANO
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