The Securities and Exchange Commission of Pakistan (SECP) has prescribed International Accounting Standards (IAS) and International Financial Reporting Standards (IFRSs) for the preparation of balance sheets and profit and loss account or income and expenditure account of the listed and such other classes of companies. Sources told Business Recorder on Tuesday that the SECP has superseded five notifications through an SRO.633(I)/2014.
The SECP's SRO.633(I)/2014 has been issued in exercise of the powers conferred by sub-section (3) of section 234 of the Companies Ordinance, 1984, and in supersession of its notification Nos. S.R.O. 665(I) 2005 dated 28th June, 2005, S.R.O. 430(I)/2007 dated 22nd May, 2007, S.R.O. 1228(1)/2008 dated 6th December, 2008, S.R.O. 149(1)/2009 dated 11th February, 2009 and S.R.O. 411(1)/2008 dated 28th April, 2008.
The SECP has directed that the following International Accounting Standards (IAS) and International Financial Reporting Standards (IFRSs) and any further revision thereof, issued by the International Accounting Standards Board shall be followed for the preparation of balance sheet and profit and loss account or income and expenditure account of the listed companies and such other classes of companies that are required by the Ordinance to follow IFRS:
IFRS-2, Share-based Payment; IFRS-3, Business Combinations; IFRS-4, Insurance Contracts; IFRS-5, Non-Current Assets Held for Sale and Discontinued Operations; IFRS-6, Exploration for and Evaluation of Mineral Resources; IFRS-7, Financial Instruments: Disclosures; IFRS-8, Operating Segments; IFRS-10, Consolidated Financial Statements; IFRS-11, Joint Arrangements; IFRS-12, Disclosure of Interests in other entities; IFRS-13, Fair Value Measurement; IAS 1, Presentation of Financial Statements; IAS 2, Inventories; IAS 7, Statement of Cash Flows; IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors; IAS 10, Events after the Reporting Period; IAS 11, Construction Contracts; IAS 12, Income Taxes; IAS 16, Property, Plant and Equipment; IAS 17, Leases; IAS 18, Revenue; IAS 19, Employee Benefits; IAS 20, Accounting for Government Grants and Disclosure of Government Assistance; IAS 21, The Effect of Changes in Foreign Exchange Rates; IAS 23, Borrowing Costs; IAS 24, Related Party Disclosures; IAS 26, Accounting and Reporting by Retirement Ben cut Plans; IAS 27, Separate Financial Statements; IAS 28, Investments in Associates and Joint Ventures; IAS 29, Financial Reporting in Hyperinflationary Economies; IAS 32, Financial Instruments: Presentation; IAS 33, Earnings per Share; IAS 34, Interim Financial Reporting; IAS 36, Impairment of Assets; IAS 37, Provisions, Contingent Liabilities and Contingent Assets; IAS 38, Intangible Assets; IAS 39, Financial Instruments: Recognition and Measurement; IAS 40, Investment Property; IAS 41, Agriculture. Provided that the Commission may grant an exemption to any company or any class of companies if it is in the public interest so to do, from compliance with all or any of the requirements of the aforesaid IFRSs, the SECP added.