SECP defers applicability of IFRS 9

ISLAMABAD, February 15: The Securities and Exchange Commission of Pakistan (SECP) has deferred the applicability of the International Financial Reporting Standard (IFRS) 9 “Financial Instruments” for all 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 non-availability of relevant data/estimates, increased complexity of the new impairment model, time constraint for finalization of financial statements for the period ending on December 31, 2018, and peculiar circumstances of various companies facing the issue of circular debt.