Some supply shocks, such as shocks to import prices other than those of food and energy, affect core inflation directly. Shocks to the prices of energy or food may affect core inflation if they become embodied in inflation expectations or if they boost core prices indirectly by raising the costs of inputs in the production of non-energy, non-food goods and services.
This standard is intended to ensure that: (i) loans and advances are regularly evaluated using an objective grading system that is consistent with regulatory standards; (ii) the accounting treatment for accrued but uncollected interest on non-performing assets is consistent with international accounting standards and regulatory reporting requirements; and (iii) timely and appropriate provisions and write-offs are made to the loan loss provisions account in order to accurately reflect the condition and operations of the bank.