By Altaf Noor Ali (ACA)
Abstract
This write-up discusses three areas where IFIs can bring more transparency in its financial reporting and practices.
Firstly, every IFIs transfers certain amount for disbursement to charities. This write-up discusses if the disclosures in IFI can be fine tuned for completeness and transparency.
Secondly, we review how an IFI would report its acquisition of a portfolio from a CFI. We also comment on the strength and weakness of disclosure of financing activities of IFIs and compare it with that of conventional commercial bank.
Finally, we comment on the going practice of virtually all IFIs of reporting cash flows from investments in securities as a part of cash flows from its investing activities. We also reason why cash flows from such investment in securities is a part and parcel of its operational cash flows of any bank, more so an IFI.
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