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2018-04-12

Added 2024-09-20 · Updated 2026-08-16

Responding to banks’ inquiries regarding the pilot application of the IFRS9 standard

The document clarifies that banks must prepare a new Statement of Comprehensive Income (OCI) for their pilot financial statements starting March 2018. It specifies that the General Credit Risk Provision will be adjusted quarterly based on an internal bank calculation involving IFRS 9 provisions and other reserves, with debit balances retained within equity. Banks are instructed to refer to specific circulars for implementation procedures and to consult their auditors regarding disclosure requirements.

Egypt

Central Bank of Egypt

Important Inquiries Received from Some Banks Regarding the Letter of the Deputy Governor dated January 28, 2018 concerning International Financial Reporting Standards IFRS9

	Serial No.	Item Number
Inquiry	Response
1: Inquiries regarding the Pilot Statements	11, 26	- Page 3, 7 in the Circulars

Should a new statement of Other Comprehensive Income (OCI) be prepared within the financial statements? The pilot application requires the preparation of a Statement of Comprehensive Income (OCI).
Regarding the disclosure requirements contained in the International Financial Reporting Standard (IFRS 9), you may refer to your external auditor.
What are the new supplementary disclosures required for the financial statements, specifically the disclosure regarding the impact on the opening balance sheet?
Disclosures regarding the new disclosures related to the application of IFRS 9 contained in IFRS 7 (Item 28, page 6 of the Circulars):
- Quarterly reporting will affect the General Bank Credit Risk Provision as a result of the following equation: General Bank Credit Risk Provision - IFRS 9 Provisions + Specific Credit Risk Provisions within ORR
- Based on the initial pilot application of the circulars, the provision reserve becomes a debit balance (referring to the result of the bank's internal application). Will the debit provision reserve be retained within the equity accounts?
Regarding pilot implementation procedures, please refer to Attachment (1) item (27, 28) 0 2.
Will the Specific Credit Risk Reserve with a credit balance amount of **** (resulting from offsetting current regulations or the old standard) continue to be used to support the formation of the General Bank Risk Provision (formed to offset risks of applying the new standard)?
Will it continue to be included along with Retained Earnings as a result of forming/releasing the reserve throughout the pilot period, and then be taken into account when settling Retained Earnings for the year 2018 at the end of the pilot application period for the standard (the Retained Earnings statement at the end of the year will be affected by the reserve balance) in the approved or pilot balance sheet?

	2: Measurement of Financial Instruments
A) Government Debt Instruments and...

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