ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has deferred the applicability of the International Financial Reporting Standard (IFRS) 9 (financial instruments) for all the companies required to prepare their financial statements in accordance with the requirements of IFRS. Through SRO 1007(I)/2017, dated October 4, 2017, the SECP had notified IFRS 9, replacing the International Accounting Standard (IAS) 39 “Financial Instruments: Recognition and Measurement”, with effect from reporting periods starting July 1, 2018. However, a number of companies have approached the SECP, requesting either relaxation from or deferral of the IFRS 9 due to unavailability of relevant data/estimates, increased complexity of the new impairment model, time constraint for the finalisation of financial statements for the period ended December 31, 2018 and peculiar circumstances of various companies facing the issue of circular debt. Based on the recommendation of the Institute of Chartered Accountants of Pakistan (ICAP), the SECP has deferred the applicability of IFRS 9 for reporting period/year ending on or after June 30, 2019.
Published in The Express Tribune, February 16th, 2019.