Regulatory Alerts2016-01-01
Circular No. 125: International Financial Reporting Standard No. 9
The Palestine Monetary Authority issued Circular No. 125/2016 to mandate all Palestinian banks to fully implement International Financial Reporting Standard No. 9 (IFRS 9) by January 1, 2018, transitioning from the previous early adoption framework to the final forward-looking Expected Credit Losses model. Banks must upgrade relevant information systems, establish internal cross-functional working teams, and submit a detailed implementation plan outlining the expected quantitative impact on financial instruments by December 1, 2016, followed by a formal quantitative impact study on their December 31, 2016 financial statements by May 31, 2017. Furthermore, all institutions are required to coordinate directly with external auditors to ensure compliance with the standard’s three-stage impairment measurement framework.