On 20th February 2019, Bank of Uganda, through the Executive Director Supervision Dr Tumubweinee Twinemanzi issued an Instruction Circular to all Supervised Financial Institutions (SFIs) on the implementation of International Financial Standards Sixteen (IFRS 16).
The circular was sent to all Chief Executives of Commercial Banks, Credit Institutions, Micro Finance Deposit Taking Institutions and Forex Bureaus. BoU notes that effective implementation of the standard will improve the transparency and comparability of information on off-balance sheet leases by bringing them onto the balance sheet.
IFRS 16 came into effect on January 01 2019. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases.
The objective is to ensure that lessees and lessors provide relevant information in a manner that faithfully represents those transactions.
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Financial institutions are expected to submit to Bank of Uganda a report of the potential quantitative impact of the implementation of IFRS 16 on its Profit after tax and core capital as at June 30, 2019 by July 2019.
How we can help?
To this end, summitIFRS has developed an IFRS 16 model to ease your IFRS 16 compliance and implementation. To schedule an appointment, email ifrs9@summitcl.com or call our champion Godfrey Ssenyonjo 0n +256 775845691 to get served.
Click here to get the pdf of the Instruction Circular from BoU
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