Regulatory Alerts1997-04-24 | 6576Consolidated Financial Statements
The Central Bank of Lebanon issued Basic Decision No. 6576 (Basic Circular No. 34) to mandate the consolidation of financial statements for banks and financial institutions, classifying entities under exclusive control, joint control, or participation. The regulation prescribes full consolidation for financial-character subsidiaries and the equity method for participating or jointly controlled entities, while detailing distinct periodic reporting obligations to the Central Bank and the Banking Control Commission. It further requires adherence to Lebanese and International Accounting Standards, updates balance sheet classifications via Annex 1, and ensures capital adequacy and facility ceiling ratios are calculated on a consolidated basis.
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