Based on Article 71 of the Executive Regulation of the Financing Companies Control Law, which stipulates that "Financing companies must follow international accounting standards in preparing their accounts and financial statements," and referring to International Financial Reporting Standard No. 9 - Financial Instruments (IFRS 9), issued on July 24, 2014, by the International Accounting Standards Board as a replacement for International Accounting Standard No. 39 (IAS 39). This standard relies on a forward-looking approach in recognizing losses, which helps in developing standards for impairment of financial assets and protecting the company and its shareholders from unexpected losses. It consists of three parts: (classification and measurement, impairment, and hedge accounting). The standard is effective for periods beginning on or after January 1, 2018, with early adoption permitted.

Therefore, all licensed financing companies are required to begin preparing for the implementation of IFRS 9 - Financial Instruments immediately and to provide the Central Bank with a progress report on the implementation on a quarterly basis starting from the end of the first quarter of 2017. Please take note and act accordingly, and inform the General Administration of Financing Companies Control of receipt within a week from the date of this notice.