The impact on the banking regulation of the IFRS implementation

Description

In May 2008, the Ministry of Finances issued a decree that made obligatory the application of International Accounting Standards and International Financial Reporting Standards since January 1st 2008. Banks, as business entities, have to start with the application and implementation of the new standards.
In order to facilitate the transition process, Bank of Albania, as the banking system supervisory authority, has to adjust the banking legislative framework and align it with the new accounting and reporting standards.

Updated on: January 6, 2009

Current Status

Final PWG document on the IFRS project was forwarded to the Bank of Albania as an input for further regulatory drafting. The Bank of Albania Supervision Department has started working on revising the regulations based on the PWG recommendations.
After the collection of the SPI Secretariat evaluation forms filled by the PWG members, SPI Regional Director of Operations released the Secretariat Evaluation Results document that was distributed to all PWG members participating in the IFRS project and was posted on the project webpage.

Achievements

• PWG agreed on the ToRs.
• PWG agreed on the main changes to be brought to the BoA regulations most impacted by IFRS implementation.
• With AAB support, SPI Secretariat run a bank survey on the banks’ readiness to implement IFRS. The main findings were delivered to the PWG and to all the Banking Community.
• The first objective of the project was achieved by National Accounting Council’s release of an official interpretation of the decree issued by the Ministry of Finance on the implementation of IFRS. The interpretation was delivered to the PWG and to all the Banking Community.
• PMT and SPI Secretariat met with the Tax Authorities and MoF
• PWG Recommendations were presented to the SPI Committee

Contributions

• SPI Secretariat prepared draft ToRs, several notes on situation in Albania and on international experience, list of the draft list of all the BoA Supervision regulations that may be impacted by the IFRS implementation and the Scoping the Problem document.
• PMT had a decisive contribution in classifying the affected regulations and on the sense of the changes.
• PWG members contributed through their feedback in the grouping of regulations and with comments on the proposed changes.
• PMT and SPI Secretariat followed up with NAC for drafting their official interpretation and assisted the by providing the Note on the European experience in implementing IFRS and the document on the main findings for the survey on banks’ readiness to implement IFRS

Outputs

• SPI Secretariat Evaluation Results
• PWG Recommendation Document
• Scoping of the Problem document
• Amendment of the First Slot of Banking Regulations Impacted by IFRS Implementation: Specific issues   of each regulation affected by the IFRS implementation and the sense of changes
• Inventory of Banking Supervision framework: categorized according to the depth of change and importance of amendment
• Report on Main Findings of the Survey on Banks readiness to IFRS
• Note on the European Experience in applying IFRS, sent to NAC
• Note on the impact of IFRS implementation on banking regulations: Some of the main changes brought in Europe by implementing IFRS
• Note on the European Experience in implementing IFRS
• Note on the Albanian Statutory Accounting Framework
• The implementation of IFRS 1-First time adoption, in Albania
• Project Terms of Reference;

Management

Members

Terms of Reference

• ToR
  

SPI Committee Documents

Project Working Group Meeting Agendas, Documents and Minutes