Regulatory Alerts2019-07-01 | 13076Central Bank of Lebanon Circular No. 519: Amendment to Basic Decision No. 12713 Regarding IFRS 9
The Central Bank of Lebanon issued Circular No. 519 to amend Basic Decision No. 12713, which implements International Financial Reporting Standard No. 9 (IFRS 9). The amendment prohibits banks from recognizing immediate profits on exchange or buy-sell operations with the Central Bank during the instrument's maturity period, while allowing immediate profit recognition for specific new operations conducted after January 1, 2019, provided the funds are transferred from abroad or from currency exchange activities. Any surplus generated from these permitted operations must be recorded in the profit and loss statement and transferred to a non-distributable general reserve at the end of the financial year.
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