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Saturday 26 August 2017
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Banking Expert Calls for Gradual Implementation of IFRS in Iran

Banking Expert Calls for Gradual Implementation of IFRS in Iran

top Iranian banking observer stresses that International Financial Reporting Standards (IFRS) need to be gradually put in practice in Iran’s banking system. Mohammad Reza Shojao’ddini told IBENA that applying such standards to financial oversight reporting are essential and significantly contributing to the important issues of transparency and the health of the country’s banking system. Shojao’ddini noted that most of the current issues raised about Iran’s banking system have to do with oversight mechanisms, and if homogeneously applied, the IFRS could tackle those issues. The Iranian expert called for the full practice of regulations ratified at the Central Bank, adding that the implementation of IFRS is a valuable opportunity. Still, Shojao’ddini made it clear that the process as acknowledged by Iranian policy-makers should be a gradual one and enforcing international standards should not be sudden and overnight. On past experience, the Iranian observer criticized what he called weak oversight and highlighted the issue of frozen assets. Shojao’ddini said the problem has prevented a materialization of the real interest rates, making the banks regard them as the payable amount and the issue created risks for the depositors and the shareholders. “But as a key positive contributor able to resolve those matters, oversight using standards must be given serious consideration”, he concluded.

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  • Banking Expert Calls for Gradual Implementation of IFRS in Iran
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