66569
30% Progress in Banks IFRS Adoption
30% Progress in Banks IFRS Adoption

Iran: 30% Progress in Banks IFRS Adoption

Iran: 30% Progress in Banks IFRS Adoption

Iranian banks’ progress in adapting to their financial statements with the new model set by the Central Bank of Iran was around 20-30% during the previous Iranian year (ended March 20), said a private bank’s board member.
The CBI had required all banks to conform their balance sheets to International Financial Reporting Standards–the latest international accounting procedures.   
“Another part of the IFRS compliance will be implemented in the current year as it is a necessity for establishing connections with international banks,” Asghar Pourmatin, a board member of the Eghtesad Novin Bank was quoted as saying by Securities and Exchange News Agency.
However, he noted, it would be better if the CBI made these changes through a step-by-step process–say in a 5-year period–to prevent any shock to the banking system.
“If banks are forced to suddenly implement the required changes in their financial statements, they would be faced by numerous problems as they are already dealing with soured assets and non-performing loans,” he added.
The IFRS-based balance sheet templates were first released by CBI in February to improve financial transparency and the international operations of Iranian banks.
CBI has seriously pursued the complete implementation of IFRS and other international banking requirements such as Basel Accords.
IFRS are a single set of accounting standards, developed and maintained by the International Accounting Standards Board for application on a globally consistent basis by developed, emerging and developing economies.
These standards help provide investors and other users of financial statements with the ability to compare the financial performance of publicly listed companies on a like-for-like basis with their international peers.
Pourmatin also named three issues hindering Iran’s international banking ties namely “non-standard financial statements”, “high ratio of NPLs” and “lack of capital”.
Gholamhossein Davani, a certified accountant also told SENA that the changes to banks’ balance sheets might create problems for banks in the short-term but in the long run, it will be beneficial for the Iranian banking system.
“Those banks that started complying with IFRS regulations from last year will not face any difficulties this year but those which refused to do so should implement them as soon as possible,” he added.
After the lifting of sanctions imposed on Iran’s banking system, the necessity of conforming to IFRS was crucial to ease and speed up the process of absorbing foreign resources. IFRS standards are now mandated for use by more than 120 countries, including the European Union and by more than two-thirds of G20 countries.

Short URL : https://goo.gl/QxvScd
  1. https://goo.gl/kHh1pj
  • https://goo.gl/zbMZfz
  • https://goo.gl/u5et5o
  • https://goo.gl/mVBkAp
  • https://goo.gl/yLhMp7

You can also read ...

Forex Rates Decline Continues in Tehran Market
The currency market in Tehran stabilized further on  Sunday...
Trump Tactic to Sanction Swift May Not Work
The Trump administration abandoned the Iran nuclear deal this...
Iran's 9-Month Trade With China Grows 1.8% to $29b
China remains the top customer of Iran’s oil and non-oil goods...
36% Rise in Iran's Cigarette Tax Revenues
The government earned 2.5 trillion rials ($17.48 million) from...
Snapshot of Iran's Nomadic Economy
The findings of the recent National Population and Housing...
Iran H1 Steel Exports Top 3.5m Tons
Major Iranian steelmakers exported a total of 3.51 million...
Q1 Production Index Signals Lackluster Industrial Performance
Iran's major industries staged a relatively weak performance...
Organic Crop Production to Be Piloted in 4 Provinces of Iran
Four provinces of Khuzestan, Fars, Isfahan and Zanjan have...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus