Q FM Africa's Modern Radio
Barclays Bank Zambia Managing Director Mizinga Melu says the implementation of the International Financial Reporting Standard (IFRS 9) will be beneficial to the customer, the financial industry, the economy and the country at large.
On 1st January, 2018, international financial reporting standard, IFRS 9 will replace IAS 39. The change will materially impact financial statements for companies in the financial services sector such as banks and insurance companies.
Speaking during the Barclays Bank Zambia sponsored IFRS 9 workshop in Lusaka, Ms Melu says the new regulations are geared towards enhancing the resilience of financial markets and financial institutions by adopting more prudent governance rules in accounting for financial instruments.
She explains that IFRS 9 – Financial Instruments, is primarily concerned with accounting for financial instruments using a principle approach based on the business model and cashflows of a company.
Ms Melu says the revised accounting rules introduce significant changes to the accounting for credit losses on financial assets and commitments to extend credit.
She states that it is widely expected that IFRS 9 will increase the stock of credit impairment provisions.