P/L statement: SECP extends major relief to companies

The Securities and Exchange Commission of Pakistan (SECP) Monday extended a major relief to all companies including mutual funds from submission of certain information in filing of Statement of Profit or Loss, as on March 31, 2020.
According to SRO 278 (I)/2020 issued by the SECP here on Monday, the commission hereby allows all companies, following relief from the requirements contained in IFRS 9 (IAS 39, IFRS for SMEs and AFRS for SSEs), requiring recording of fair value adjustments of equity instruments held as FVPL (Fair Value through Profit or Loss) in the Statement of Profit or Loss, as at March 31, 2020:
i) Gain/loss, if any, due to fair value measurement of FVPL equity instruments, held as at March 31, 2020, may be shown in the Statement of Changes in Equity, as a separate component of equity.
ii) The amount taken to equity including any adjustment/effect for price movements shall be taken to the Statement of Profit or Loss for the year/period ending June 30, 2020.
iii) The amount of loss taken to equity shall be treated as a charge to statement of profit or loss for the purposes of distribution as dividend, where applicable.
The companies and mutual funds willing to follow the full requirements of IAS-39/ IFRS 9, IFRS for SMEs and AFRS for SSEs as applicable are encouraged to do so.
All companies and mutual funds opting for the treatment, shall disclose prominently on the face of their Statement of Financial Position, Statement of Profit or Loss and Directors' Report the parameters used by them in determination of the value of their investments and the figures arrived at under both regular and especially opted accounting treatment, that is to say, the requirement of IFRS regarding disclosure of such departure have been complied with.