Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Circular No. (2015/171)

To all banks operating in Palestine

Date: Sunday, December 20, 2015

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Subject: Revenue Recognition from Fees and Commissions

Further to Circular No. (2015/105) dated 2015/09/02 and Circular No. (2015/79) dated 2015/05/19 regarding the application of International Accounting Standard No. 18 (Revenue Recognition), and after studying implementation obstacles and mechanisms, the following has been decided:

1. Postpone the application of the requirements of the aforementioned circulars on fees and commissions collected on loans granted to individuals, with implementation to commence from 2016/01/01.

2. Allow banks to recognize fees and commissions, not exceeding USD 500 or its equivalent in other currencies collected for loans granted to individuals exclusively, upon the provision of the service.

3. Comply with the remaining requirements stipulated in Circular No. (2015/105) dated 2015/09/02 and Circular No. (2015/79) dated 2015/05/19 when preparing the final financial statements as of 2015/12/31.

We request that banks complete the amendment of their accounting systems and remove the cutoff date of 2015/12/31, so that from 2016/01/01, the recording and recognition of fees and commissions will be conducted automatically to comply with Standard No. (18) and the relevant circulars.

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Deputy Governor
for Financial Stability Affairs

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Supervision and Evaluation Department

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www.pma.ps

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Ramallah - Palestine P.O. Box 452 | Phone: +970 2 2415250 | Fax: +970 2 2409922 | Switchboard: +970 2 2409922
Gaza - Palestine P.O. Box 4026 | Phone: +970 8 2825292 | Fax: +970 8 2844487 | Switchboard: +970 8 2844487
Email: info@pma.ps