UAE central bank issues guidance to financial institutions on application of IFRS 9

Abu Dhabi: The Central Bank of the UAE, CBUAE, has issued its guidance to financial institutions on the application of International Financial Reporting Standard 9, IFRS 9.

The guidance has been issued after a consultation with stakeholders in the financial sector.

The objective of IFRS9 guidance is to ensure that credit losses resulting from the consequences of COVID-19 pandemic are appropriately calculated.

IFRS9 guidance proposes practical solutions to manage the impact of economic uncertainty on the estimation of expected credit losses, while remaining compliant with IFRS 9.

The guidance also aims to ensure transparency and disclosure, contributing to strengthened financial stability in the UAE.