Regulatory Alerts2017-12-03
IFRS 9 Implementation and Transitional Arrangements in Saudi Arabia
SAMA has issued comprehensive guidance and transitional arrangements to implement IFRS 9, replacing IAS 39 for Saudi banks beginning January 2018. The regulator mandates a dynamic transitional approach that phases in day-one capital impacts over five years while specifying Tier 2 inclusion criteria for stage two provisions exceeding thirty days past due. Banks must apply these national discretions alongside Basel standards and disclose the resulting transitional versus fully loaded capital and leverage ratios in their Pillar 3 reporting.
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