Following the approval of the Securities and Exchange Commission of Pakistan (SECP) Policy Board, the SECP has directed all

Takaful Operators or Window Takaful Operators to comply with the requirements of International Financial Reporting Standards adopted by the Institute of Chartered Accountants of Pakistan and the Islamic Financial Accounting Standards.

In this regard, the SECP has issued General Takaful Accounting Regulations, 2019 here on Friday.

According to the SECP, the regulations shall come into force for the accounting periods commencing on or after January 1, 2020.

Following forms of regulatory returns shall be submitted according to the forms annexed to these Regulations: (a) balance sheet which shall be deemed to constitute the "statement of assets and liabilities (Form GAT); (b) profit and loss account which shall be deemed to constitute the "statement of profits and losses" (Form GBT); (c) statement of changes in shareholders equity and participants Takaful fund prescribed (Form GBBT); (d) statement of cash flows required (Form GCT); (e) statement of contributions required (Form GDT); (f) statement of claims/benefits required (Form GET); (g) statement of expenses required (Form GFT); (h) Statement of investment income required (Form GGT); (i) statement of claims/benefits analysis required under sub-clause (viii) of clause (b) of sub-section (1) of section 46 of the Ordinance (Form GHT); (j) statement of estimated exposures required (Form GIT); (k) statement of assets for solvency purpose prescribed (Form GJT); (l) and classified summary of assets in Pakistan prescribed (Form GKT).

Where an Operator controls other entities, consolidated regulatory returns are not required to be submitted, SECP added.

If an Operator writes business outside Pakistan then a complete set of regulatory returns except for Form GAT shall be prepared for such business and shall be made part of the primary set of regulatory returns through separate statement.

The insurers undertaking with window operations will disclose their Takaful results in their published financial statements.

Insurers undertaking Window Takaful Operations shall prepare a separate complete set of regulatory returns as required under regulation 4 for its Takaful operations which shall be filed with the Commission along with the annual regulatory returns of the insurer, the SECP added.

The regulatory returns and published financial statements (and separately in case of window Takaful financial statements) shall be accompanied by an audit report in accordance with the format as specified through Auditors (Reporting Obligations) Regulations, 2018, or in accordance with the format as specified by the Commission from time to time.