Regulatory Alerts2017-11-21
Regulatory Treatment of Accounting Provisions – Interim Approach and Transitional Arrangements
The South African Reserve Bank directs all banks to classify IFRS 9 accounting provisions as either general or specific for regulatory capital purposes. It establishes a three-year straight-line transitional arrangement that phases in the initial Common Equity Tier 1 capital impact and eligible provision adjustments to prevent immediate capital shocks. The directive further mandates specific Pillar 3 disclosures, special purpose financial information, and ISA 805 audit reports to ensure consistent implementation and supervisory oversight.
Share