In order to smoothen and standardizing disclosures of Islamic Banks and branches, the State bank of Pakistan has decided to introduce the changes in ‘Statement of Financial Position’ and relevant notes to the accounts. Some of the changes proposed by SBP are
The head ‘Financings’ used in Balance sheets and notes to the accounts will be renamed as ‘Islamic Financing and Related Assets’.
All advances booked under murabaha etc, inventories and other related items(s) pertaining to Islamic banking which appear in ‘other assets’ sections will be reported as ‘Islamic Financing and Related Assets’. The breakup of Islamic financing and related assets and their respective subdivisions shall be reported in the notes to the financial statements.
The Islamic banking branches disclosure as per annexure-2 to BSD circular 4; of 17 Feb 2006 is also amended based on the above lines. All Islamic banks and their Islamic banking branches are advised to comply with the above mentioned instructions with effect from December 31, 2012 while reporting their annual, half-yearly and quarterly financial statements.