The State Bank of Pakistan (SBP) on Monday issued new guidelines for disclosure requirements in annual financial statements. SBP, referring to BSD Circular No 04 dated February 17, 2006, has said that it has been observed that Banks/DFIs are not complying with the disclosure requirements for preparation and reporting of annual audited financial statements, particularly when it comes to disclosing sub-head 'Others' in various notes.

Therefore, to ensure the proper disclosure and uniformity in reporting, Banks/ DFIs have been advised by SBP to make disclosure under the following notes as specified in the "Required" column: According to BSD Circular Letter No 09 issued to all banks and DFIs, this instruction will be applicable with immediate effect and all Banks/ DFIs have been advised to ensure meticulous compliance with the above disclosure requirements.

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Sr. No   Note No                           Required

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a     Other Income (29) -           Sub-items, along with amounts, should be

      Others (to be specified)      specified under  the "Others" head.

b     Administrative Expenses       Amount will be considered material in "Others",

     (30) Others to be              if it is equal to or greater than 5 percent

      specified, if material)       of main head or Rs 200 million, whichever is

                                    less. If the amount is material, sub-items,

                                    along with amounts should be specified under

                                    the "Others" head.

c     Other Charges (31) -                      -do-

      Others (to be specified,

      if material)

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