ICPAK chief executive Edwin Makori[Photo/business daily]Guidelines to be implemented by the International Financial Reporting Standard (IFRS9) have been released by the Institute of Certified Public Accountants of Kenya (ICPAK).The new standard has introduced stringent conditions on how banks provide for non-performing loans, with the new guidelines expected to guide institutions on how to effect the new rules which came into effect at the beginning of this month.The guidelines will be used by financial institutions when they are measuring impairment of their financial assets, with banks expected to increase their cover for bad loans under the new rules.It guides the classification and measurement, impairment and hedging of financial assets within the institutions.ICPAK chief executive Edwin Makori said, “We have engaged various stakeholders in the market and due to the complexity of the standards, several challenges are anticipated during its implementation and adoption.”ICPAK said it consulted Central Bank of Kenya (CBK), Sacco Societies Regulatory Authority (Sasra), Insurance Regulatory Authority (IRA), Capital Markets Authority (CMA), Kenya Bankers Association (KBA), and the audit firms operating in Kenya while developing the guidelines.

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