| Wed 21 Nov 2018, 14:00 | | FIRSTRAND BANK LIMITED - FRII FRD and FRLE - IFRS 9 Transition Impact at 1 July |
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KCCGLD DCCUSD DCCUS2 FRK01 FRPT01 FRB05 FRB14 FRB19 FRBC21 FRBZ01 FRBZ02 FRBZ03 FRS100 FRS133 FRS173 FRS174 FRX19 FRX20 FRX24 FRX31 FRX32 FRX45 FRC272 FRC273 201811210048A
FRII FRD and FRLE - IFRS 9 Transition Impact at 1 July
FirstRand Bank Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1929/001225/06)
JSE company code interest rate issuer: FRII
JSE company code debt issuer: FRD
JSE company code ETF issuer: FRLE
(FRB or the bank)
IFRS 9 TRANSITION IMPACT AT 1 JULY
From 1 July 2018, FRB adopted two new financial reporting standards. The first standard, IFRS 9, replaces IAS
39 on the recognition and measurement of financial instruments. It has fundamentally changed the way FRB
accounts for financial assets and liabilities, such as advances to customers. These fundamental changes in
FRB’s accounting framework relating to financial instruments, and impairment methodology in particular, came
into effect from the beginning of the 2018/19 financial year. The second standard is IFRS 15, which impacts how
revenue is recognised.
The bank’s interim results for the six months to December 2018 and subsequent results will be prepared
according to this new accounting framework. Given the changes, the bank is publishing an IFRS 9 financial
instruments transition report to explain the differences between IFRS 9 and IAS 39, and how the adoption of
IFRS 9 changes key financial metrics. It is important to note that these are accounting changes, and the
economic performance remains the same. The adoption of IFRS 9 does not change the credit quality of the
various financial instruments, but results in the earlier recognition of credit losses by the bank. IFRS 15 had no
impact on the bank’s capital and reserves.
Security holders are advised that FRB’s IFRS 9 financial instruments transition report is now available on the
group’s website: https://www.firstrand.co.za/InvestorCentre/Pages/ifrs9transition.aspx
21 November 2018
Debt Sponsor
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
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