Regulatory Alerts2015-01-01
Circular No. 79 Revenue Recognition from Fees and Commissions
The Palestine Monetary Authority issued Circular No. 79/2015 to mandate uniform revenue recognition for bank fees and commissions in compliance with International Accounting Standard No. 18. The directive requires all Palestinian banks to distinguish between fees that form part of the effective yield on financial instruments, those earned upon service provision, and those earned upon completion of a significant banking act, applying these recognition methods effective July 1, 2015. It provides a detailed annex classifying specific fee types across direct credit facilities, indirect credit facilities, acceptances, guarantees, foreign exchange, and credit cards to standardize accounting treatment and repeal conflicting prior provisions.
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