Circular Regarding the Amendment of Financial Statement Forms No. 10/1/11141 dated 12/11/2007

In the Name of Allah, the Most Gracious, the Most Merciful

Central Bank of Jordan
CENTRAL BANK OF JORDAN

King Abdullah II University
Department of Government Performance and Transparency Heritage (2001-2002) Member University

Number: 11146 / 11/10
Date: 1428/11/14 AH
Corresponding Date: 2007/11/12 AD

Subject: Banks' Financial Statements

Greetings,

In light of the issuance of Standard No. (7) of the International Financial Reporting Standards and the amendments made to other standards, which necessitates the modification of the currently approved forms for financial statements prepared for publication, a copy of the modified financial statement forms for publication purposes in their final form, including the accounting policies followed and other related disclosures, is attached after being prepared in coordination and consultation with the auditors.

We hereby emphasize the necessity of observing the following:

1. Compliance with these forms starting from your 2007 financial statements, and working to provide them with those data, audited and certified according to the rules, no later than the end of February of each year for annual data, and the end of July of each year for semi-annual data, for both Jordan branches and the bank as a unified entity.

2. Providing the Central Bank with annual and semi-annual financial statements for its own purposes, using the approved attached forms and containing all attachments specified in the attached list, certified by the auditors.

3. Banks must prepare semi-annual financial statements in accordance with the requirements of Standard No. "34" of the International Accounting Standards, with the necessity of providing the Central Bank of Jordan, for its supervisory purposes, with all financial statements and detailed disclosures mentioned in item (7) above.

P.O. Box 37 • Amman 11118 Jordan • Phone 02 4630201 • Fax 02 4638889 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo

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CENTRAL BANK OF JORDAN
البنك المركزي الأردني

4. The financial statements of Jordanian banks are to be signed by both the Chairman of the Board (or his deputy in his absence) and the General Manager, while the financial statements of non-Jordanian banks are to be signed by the Regional Manager of the bank in the Kingdom.

5. The financial statements and their attachments are to be received by the designated employee in the Banking Supervision Department after ensuring they meet all specific requirements, noting that the Central Bank will unfortunately be forced not to receive such data if there are deficiencies in them.

6. In the event that the Central Bank requests any amendments to the financial statements or their disclosures, the bank must make all amendments and provide the Central Bank with the data, amended and certified according to the rules and certified by the auditors, to enable the appropriate decision to be taken regarding them.

7. The operations of financial companies affiliated with banks are subject to the instructions for classifying credit facilities and calculating provisions and general banking risk reserves No. (2006/30) dated 13/6/2006, emphasizing the necessity of treating open brokerage debts as open accounts for this purpose.

8. Our above instructions or the instructions of the host supervisory authority, whichever is stricter, apply to branches/affiliated companies/units of Jordanian banks operating abroad.

9. Excluding investments in the capital of banks and affiliated financial companies whose financial statements have not been consolidated, as well as investments in the capital of licensed banks and other financial companies, from core capital and adding market risks to the ratio denominator when calculating the core capital ratio.

10. Including any facilities granted to financial brokerage companies and open brokerage debts under the item "facilities granted for share purchase" in the disclosure regarding the distribution of facilities by economic activity.

11. It is required that the disclosures include the disclosure of transactions with related parties of the bank's subsidiaries, as well as the disclosure of transactions with related parties of the bank itself.

Form (11/10/9)
P.O. Box 37 • Amman 11118 Jordan • Phone 02 4630201 • Fax 02 4638889 • Telegram: Central Bank/Amman • Telex 21250, 21476, 21766 • Fax 02 4638889, 02 463973, 02 4613308

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CENTRAL BANK OF JORDAN
البنك المركزي الأردني

12. Securities portfolios are to be revalued at the date of the financial statements in accordance with the requirements of International Accounting Standards, and changes in value are to be treated according to the accounting policies contained in the attached financial statement forms, bearing in mind that if the trading volume of any share during the period is so low that it does not reflect the market value of the share as fair value, a weighted average price of all transactions conducted on that share during the financial period is to be calculated, provided that there are no fewer than three transactions after excluding abnormal transfers; otherwise, this share is treated as non-traded shares.

13. For the purpose of calculating the capital adequacy ratio, general banking risk reserves are treated as general provisions (previously).

14. Disposal of the amounts of the following items is prohibited without prior approval from the Central Bank of Jordan:

• Accumulated change in fair value.
• Amounts equivalent to deferred tax assets (from retained earnings).
• Cost of existing treasury shares (from retained earnings or reserves).
• Share premium of treasury shares.
• General banking risk reserves.
• Any amount restricted for disposal in accordance with the instructions and orders of the Central Bank and prevailing legislation.

What is stated in this circular is to be applied from its date, and the following circulars are repealed:

• (19662/2/10) dated 2001/12/6.
• (12985/1/10) dated 2005/12/15.
• (1341/10) dated 2006/12/27.

With highest respect,

Governor
Dr. Abu Toqan

Attachments: Number (1) and compact disc

P.O. Box 37 • Amman 11118 - Jordan • Phone 02 4630301 • Telegram: Central Bank/Amman • Telex 21250, 21476, 21766 • Fax 02 4638889, 02 463973, 02 4613308 Form (1/1/09) ```