UAE Central Bank issues financial reporting guidance to calculate Covid-19 credit losses – The National

UAE Central Bank issues financial reporting guidance to calculate Covid-19 credit losses – The National

UAE Central Bank issues financial reporting guidance to calculate Covid-19 credit losses. The Central Bank of the UAE issued guidance to financial institutions on the application of International Financial Reporting Standard 9 (IFRS 9) to ensure that credit losses due to Covid-19 are appropriately calculated.. The guidance for complying with IFRS 9 - a global accounting standard applied to financial instruments - was issued after a consultation with stakeholders, the central bank said in a statement on Saturday.. The guidance also aims to "ensure transparency and disclosure, contributing to strengthened financial stability in the UAE", the central bank said.. Last month, as the central bank boosted its Targeted Economic Support Scheme (Tess) package to Dh256 billion, regulatory bodies in the UAE issued guidance to lenders on handling problem loans during the coronavirus crisis.. The central bank and the regulators of the country's two financial free zones - Abu Dhabi Global Market and the Dubai International Financial Centre - said "the flexibility embedded in the IFRS 9 framework" should be used when looking at clients' ability to repay loans.. The regulators added that banks should place those unable to make payments due to business disruption into two groups: those only temporarily