Accountants are engaging banks to adopt the new International Financial Reporting Standard 9 (IFRS 9), which they say will bring uniformity and consistency in reporting of financial information.
The Institute of Certified Public Accountants of Kenya (ICPAK) Tuesday said it has partnered with the Kenya Bankers Association (KBA) to sensitise bank chief finance officers on the implications and impact of the new standards and steps for effective implementation.
“We urge companies to prepare and embrace the new standard in order to achieve uniformity and consistency in reporting of financial information,” said ICPAK chief executive Edwin Makori.
The institute said further engagements with other stakeholders will be undertaken across all the sectors where the impact of the new standard will be felt.
The new reporting standard is due to come into effect on January 1, 2018 across the globe. IFRS 9 was developed in response to the global financial crisis to help ensure financial institutions recognise and account for risk more prudently.
The Basel standard was issued by the International Accounting Standard Board (IASB). Compliance is a regulatory requirement under the Companies Act 2015.
The IFRS 9 deals with accounting for financial instruments like loans and advances, customer deposits, government securities, cash, borrowings debtors and creditors.