Regulatory Alerts2017-12-28 | 88426Recommendations on the Application of International Financial Reporting Standard (IFRS) 9
Issued by the National Banking Supervision Committee of the Kyrgyz Republic, these Recommendations establish mandatory accounting adjustments for commercial and development banks to implement IFRS 9. They require financial institutions to adopt robust internal control frameworks, define clear criteria for significant credit risk increases and default, and calculate Expected Credit Losses using probability-weighted, forward-looking macroeconomic models across three impairment stages. Furthermore, the directives mandate systematic documentation of business model assessments, SPPI testing, and asset reclassification to ensure consistent risk measurement and reserve provisioning.
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