The Securities and Exchange Commission of Pakistan (SECP) has exempted certain companies holding financial assets from the requirement of submission of the IFRS 9 (Financial Instruments).
This is subject to the conditions specified for the companies in the S.R.O.67(I)/2023 issued on Tuesday.
According to the notification, in respect of companies holding financial assets, due or ultimately due from the Government of Pakistan in respect of circular debt, the requirements contained in “IFRS 9 (Financial Instruments) with respect to the application of Expected Credit Losses Method” shall not be applicable on such financial assets for the financial years ending on or before December 31, 2024.
Provided that such companies shall follow relevant requirements of IAS 39-Financal Instruments: Recognition and Measurement, in respect of above referred financial assets during the exemption period, SECP added.
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