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Tribune News Network
Doha
In the coming months, Qatar's banks and other financial institutions will be implementing long-awaited changes to the way that they account for loan losses and recognise revenue.
To help businesses ensure that all preparations are in place and that they understand how the new standards will affect them, audit-tax-and-advisory firm KPMG in Qatar will conduct a workshop on November 29 at W Hotel Doha for senior finance professionals.
The upcoming changes include implementation of International Financial Reporting Standard (IFRS) 9, which is likely to result in greater loan loss provisions by financial institutions and will provide investors with useful information on changes in credit risk exposure.
The IFRS15, which will also be implemented, establishes a comprehensive framework for determining when to recognise revenue and how much revenue to recognise.
The two norms will come into effect on January 1, 2018, and it is essential that Qatar's corporates and financial institutions need to be prepared.
KPMG in Qatar Director Rizwan Yaseen said,"The 2007-08 subprime crisis triggered a global need to revise financial reporting standards by highlighting acute short- comings, particularly in how banks accounted for loan losses.
"Qatar has demonstrated commitment to upholding the most rigid of international regulations by implementing the new standards, with Qatar Central Bank running a consultative process and drawing inputs from the nation's banks and Big 4 audit firms in preparation for IFRS 9 adoption in January 2018."
IFRS 9 will replace IAS 39 Financial Instruments and covers classification and measurement, impairment and hedge accounting. It is relevant to many different companies but will have the greatest effect on financial institutions. In practice, the most significant change will be in the way that financial institutions account for loan losses.
IFRS 15 will affect almost all companies because it covers revenue from all contracts with customers, except for revenue from leases, financial instruments and insurance contracts.
It provides a framework that replaces existing revenue recognition, moving away from industry and transaction specific requirements, introducing a new recognition model for contracts with customers.
For some, the new standard will have a significant impact on how and when they recognize revenue.
Talking about the event, Accounting Advisory Services Director at KPMG in Qatar, Yusuf Sayed said,"It is essential that Qatar's businesses prepare for the launch of these new standards to ensure that they are compliant with industry and customer expectations."
The International Financial Reporting Standard (IFRS) Foundation is a not-for-profit international organization responsible for developing a single set of high-quality, global accounting standards, known as IFRS Standards.
IFRS Standards are set by the IFRS Foundation's standard-setting body, the International Accounting Standards Board. IFRS Standards are required in over 125 jurisdictions including in Qatar.
