PD-A.2 PD-A.2 General Requirements
PD-A.2.1
All
microfinance institutions must have a formal disclosure policy as part of their overall communications strategy approved by the Board of Directors (and supported by documented procedures) that addresses the disclosures that themicrofinance institution makes and the internal controls over the disclosure process. In addition, allmicrofinance institutions must carry out an annual review of the validity of their disclosures (in terms of scope and accuracy) as outlined in Modules BR and Paragraph AA-3.2.1.January 2014PD-A.2.2
All
microfinance institutions are required to publish their annual audited financial statements per the rules set out in this Module and Article 62 of the CBB Law and the Bahrain Commercial Companies Law (as amended), where applicable. Such financial statements must be prepared in accordance with International Financial Reporting Standards (IFRS) in the case of conventionalmicrofinance institutions or Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) for Shari'a compliantlicensees and for products and activities not covered by AAOIFI, by IFRS and IAS.January 2014PD-A.2.3
The CBB requires that each
microfinance institution maintain an up-to-date checklist of all applicable accounting standards and also the disclosure requirements set out in this Module for full compliance purposes. Such checklists should be part of themicrofinance institution's public disclosures procedures.January 2014PD-A.2.4
[This Paragraph was deleted in April 2014].
Deleted: April 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
microfinance institution .January 2014PD-A.2.6
A
microfinance institution should decide which disclosures are relevant for it based on the materiality concept and subject to the concurrence of themicrofinance institution's external auditor. For themicrofinance institutions' 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.2.7
Non-compliance with these disclosure requirements is likely to lead to enforcement actions as outlined in Module EN (Enforcement) such as a fine imposed by the CBB.
January 2014