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  • PD-1 PD-1 Annual disclosure requirements

    This version of Module PD was replaced in April 2008. Click here for the current Module PD.

    • PD-1.1 PD-1.1 Introduction

      This version of Module PD was replaced in April 2008. Click here for the current Module PD.

      • PD-1.1.1

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        The purpose of the contents of this Chapter is to set out the Central Bank's requirements relating to the disclosure of information in the bank's annual audited financial statements ('Annual Report'). This Chapter also refers to the Bahrain Commercial Companies Law of 2001 (as amended) and the Bahrain Stock Exchange regulations relating to public disclosure and reporting requirements.

        October 07

      • PD-1.1.2

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        For the purpose of this Module, the following definitions apply:

        (a) 'Director' includes any person who occupies the position of a Director and any person who appears to the Central Bank to be a Director (howsoever called) of the applicant/licensed locally incorporated banks and its subsidiaries;
        (b) 'Chief Executive/General Manager' means a person who is responsible under the immediate authority of the Directors for the conduct of the applicant/licensed locally incorporated bank, including its subsidiaries and overseas branches, and Bahrain branches of foreign banks;
        (c) 'Manager' means a person who, under the immediate authority of a Director or the chief executive/general manager, exercises major managerial function(s) or is responsible for maintaining accounts or other records of the applicant/licensed bank; and
        (d) 'Interest in the shares' shall include, but not be limited to, direct and/or indirect ownership of such shares, the right of voting associated with such shares, the right to receive dividends payable on such shares, and/or any right, regardless of the form thereof, to purchase (or otherwise acquire an interest in) such shares at any time.
        October 07

    • PD-1.2 PD-1.2 Publication of annual audited financial statements (Annual Reports)

      This version of Module PD was replaced in April 2008. Click here for the current Module PD.

      • PD-1.2.1

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        Locally incorporated banks are required to publish their audited financial statements per the rules set out in the CBB law, Bahrain Commercial Companies Law of 2001 (as amended) and the Bahrain Stock Exchange regulations (this latter obligation only applies to banks listed on the Bahrain Stock Exchange).

        October 07

      • PD-1.2.2

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        The audited financial statements should be prepared in accordance with the Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). For products and activities not covered by AAOIFI, International Accounting Standards (IAS) should be followed.

        October 07

    • PD-1.3 PD-1.3 Disclosure in the annual audited financial statements (Annual Reports)

      This version of Module PD was replaced in April 2008. Click here for the current Module PD.

      • General

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-1.3.1

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          The audited financial statements should be prepared in accordance with the Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

          October 07

        • PD-1.3.2

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          For products and activities not covered by the standards listed in Paragraph PD 1.3.1, banks should follow the requirements of the International Accounting Standards (IAS) for preparation of audited financial statements.

          October 07

      • Approval by the Board of Directors

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-1.3.3

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          The accounts should be approved by the bank's Board of Directors, signed (normally by the Chairman and the Chief Executive Officer) and annotated as follows:

          'These accounts were approved by the Board of Directors on [date] and signed on their behalf by [name/title] and [name/title]'.

          October 07

      • Investment accounts

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-1.3.4

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          Restricted investment accounts are to be reported off-balance sheet in the financial statements. Banks must provide disclosures as per the requirements of FAS 1: Presentation and Disclosure in the Financial Statements of Islamic Banks and Financial Institutions issued by AAOIFI.

          October 07

        • PD-1.3.5

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          Unrestricted investment accounts are to be reported on-balance sheet in the financial statements. The assets financed by the unrestricted investment accounts are to be included under the Assets Section on the balance sheet (net of provisions). The equity of the unrestricted investment accounts should be shown between the liabilities and owners' equity Sections. Disclosures and presentations must be in accordance with FAS 1 issued by AAOIFI.

          October 07

      • Consolidation issues

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-1.3.6

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          Where a parent or a group company operating in Bahrain receives funds on an unrestricted basis and these funds are invested with another group company on a restricted basis, these should be eliminated on consolidation. In the consolidated financial statements, investment of the PSIA outside the group should be reported as Unrestricted Investment Accounts. Disclosures and presentation should be in accordance with FAS 1 issued by AAOIFI.

          October 07

      • Compliance

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-1.3.7

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          The Annual Report should include a declaration by the external auditors that no violations have taken place of:

          (a) The Bahrain Commercial Companies Law of 2001 (as amended);
          (b) The CBB Law that might have had a material effect on the business of the bank or on its financial position; and
          (c) The licensing and authorisation requirements and other rules and regulations issued by the Central Bank.

          In so far as the violations have any material impact on the financial statements of the bank.

          October 07

        • PD-1.3.8

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          The Annual Report must disclose the amount of any penalties paid to the Central Bank during the period of the report together with a factual description of the reason(s) given by the Central Bank for the penalty (see Section EN-1.3). Failure to comply with this requirement will mean that the concerned bank will be required to make the disclosure in the subsequent quarterly financial statement and in the subsequent annual financial statement. A financial penalty for non-disclosure will also be levied upon the concerned bank.

          October 07

    • PD-1.4 PD-1.4 Additional disclosure in the annual audited financial statements of banks listed on the Bahrain Stock Exchange (BSE)

      This version of Module PD was replaced in April 2008. Click here for the current Module PD.

      • PD-1.4.1

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        The content of this Section is applicable only to locally incorporated banks listed on the Bahrain Stock Exchange (BSE).

        October 07

      • PD-1.4.2

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        The disclosure requirements set out in this Section for banks referred to under Paragraph PD-1.4.1 are in addition to those set out in Section PD-1.3.

        October 07

      • Interests of Directors, chief executive officers and managers

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-1.4.3

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          Without prejudice to any other requirement of Bahrain law (or any other direction of the Central Bank), the Directors' Report Section of the annual audited financial statements of banks should contain details of the interests of Directors, chief executive officers and managers (persons as defined under Section PD-1.1, respectively) in the shares of such banks. Such details should include:

          (a) Total interests in the shares of such banks by individual persons mentioned above, and
          (b) Changes in such interests from the previous financial year to the current financial year.
          October 07

        • PD-1.4.4

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          For the purpose of the disclosure required under Paragraph PD-1.4.3, any interests in the shares of a bank held by the spouse(s) or children of a Director, or any other person the control of whose interests in such shares lies ultimately with the Director, shall be deemed to be the interests of the relevant Director. For a definition of 'interest in the shares', see Paragraph PD-1.1.2(d).

          October 07

    • PD-1.5 PD-1.5 Disclosure relating to precious metals and commodities trading activities

      This version of Module PD was replaced in April 2008. Click here for the current Module PD.

      • PD-1.5.1

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        The content of this Section is applicable to all licensed banks authorised to carry out activities related to trading in precious metals and commodities in accordance with the requirements set out under Chapter LR-5.

        October 07

      • Dealing authorisation

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-1.5.2

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          All licensed banks authorized to carry out such dealing activities are required to show in their audited annual financial statements, as a note to or on the face of the balance sheet and profit and loss account, in addition to the disclosure requirements stated in this Chapter, accounts detailing assets and liabilities related to precious metals and commodities and their profit and loss account income attributable to such dealing.

          October 07