KARACHI, Aug 27: The State Bank has allowed the banks to defer the implementation of International Accounting Standards (IAS) 39 and 40 till further instructions.

But it has advised them to review their internal systems and procedures to prepare for the implementation of the same “in due course.”

A letter issued by the State Bank on Monday says the decision has been taken “to facilitate the banks” in view of the problems being faced by them in the implementation of IAS 39.

The letter says that the Institute of Chartered Accountants of Pakistan has also recommended deferment of the said standards.

“Similarly, there are also some issues to be sorted out to prepare the banks for the implementation of IAS 40.”