Regulatory Alerts2024-02-02 | 13612Translation Principles of Foreign-Currency Denominated Assets and Liabilities into Lebanese Pound
Banque du Liban’s Acting Governor issued Basic Decision No. 13612, requiring all Lebanese banks and financial institutions to translate foreign-currency denominated monetary assets and liabilities, along with non-monetary assets classified at fair value, into Lebanese Pounds using the IAS 21 translation principle and rates from the central bank’s approved electronic platform. The mandate applies to financial statements suspended as of January 31, 2024, and aligns domestic regulatory reporting with IFRS standards by mandating valuation based on the net equity method and officially announced exchange rates. This decision updates prior accounting design frameworks to ensure consistent, market-driven currency conversion for financial statement preparation.