PD-A.2 PD-A.2 General Requirements
PD-A.2.1
All
financing companies must have a formal disclosure policy as part of their overall communications strategy, supported by documented procedures and approved by the Board of Directors that addresses the disclosures that the company makes and the internal controls over the disclosure process. In addition, allfinancing companies must carry out a regular review of the validity of their disclosures (in terms of scope and accuracy) as outlined in Modules BR and AA.January 2014PD-A.2.2
All
financing companies are required to publish their annual audited, and reviewed quarterly financial statements per the rules set out in this Module and Article 62 of the CBB Law, the Bahrain Commercial Companies Law (as amended), the Rulebook of thelicensed exchange and Volume 6 (Capital Markets), where applicable. Such financial statements must be prepared in accordance with International Financial Reporting Standards (IFRS) in the case of conventional financing companies and Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in the case of Shari'a compliantfinancing companies .January 2014PD-A.2.3
The CBB requires that each
financing company maintain an up-to-date checklist of all applicable IFRS/AAOIFI standards and also the disclosure requirements set out in this Module for full compliance purposes. Such checklists should be part of thefinancing company's public disclosure procedures.January 2014PD-A.2.4
The disclosures specified in this Module, which are in addition to those required by applicable accounting standards, must be reviewed by the
financing company's external auditor based on agreed upon procedures (unless IFRS/ AAOIFI require that the concerned disclosures are audited).January 2014PD-A.2.5
The disclosures in this Module may be presented as an accompanying document or appendices to the Annual Report or in the Notes to the Financial Statements at the discretion of the concerned
financing company .January 2014PD-A.2.6
The external auditor's review must also check other statements in the Annual Report such as the Chairman's report to ensure that such statements are consistent with the audited financial statements and the disclosures required by this Module. All qualitative or descriptive disclosures in the Annual Report must be based upon and reflective of facts and actual practice by the
financing company (and be subject to the above review by the company's external auditor).January 2014PD-A.2.7
If situations arise where disclosures required in this Module are in conflict with those required under IFRS/AAOIFI and/or any listing requirements issued by the CBB or a
licensed exchange , listedfinancing companies should first follow the CBB's requirements as contained in Volume 6 (Capital Markets). In such situations,financing companies should explain any material differences between the accounting or other disclosures and the disclosure required in this Module. This explanation does not have to take the form of a line-by-line reconciliation, but should provide stakeholders with sufficient detail to make an objective assessment of thefinancing company's financial and operational health. Moreover, a formal notification to the CBB is required in such a situation.January 2014PD-A.2.8
A
financing company should decide which disclosures are relevant for it based on materiality and subject to the concurrence of thefinancing company's external auditor. For thefinancing companies' guidance, information would be regarded as material if its omission or misstatement could change or influence the assessment or decision of a user relying on that information for the purpose of making economic decisions.January 2014PD-A.2.9
Non-compliance with these disclosure requirements is likely to lead to enforcement actions, such as a fine, as outlined in Module EN (Enforcement) .
January 2014