Regulatory Alerts2018-06-05
Added · Updated
Instructions for the Implementation of International Financial Reporting Standard (9) No. (13/2018)
The Central Bank of Jordan mandates banks to implement IFRS 9, requiring the recognition of the initial impact on opening equity as of January 1, 2018, and the transfer of the General Banking Risk Reserve balance to retained earnings. Banks must maintain unused portions of the previous reserve without distribution, apply specific Tier 2 capital calculations for Stage 1 provisions, and adhere to distinct impairment rules for Islamic finance exposures funded by investment accounts. The directive also requires external auditor verification of expected credit loss methodologies, mandates specific quantitative and qualitative disclosures, and repeals previous circulars regarding the standard's implementation.