Security and Exchange Commission of Pakistan issued Two Notifications ref: S.R.O. 985 (I)/2019 and S.R.O. 986 (I)/2019 on September 2, 2019.
S.R.O. 985 (I)/2019
REQUIREMENTS OF IFRS 9 (FINANCIAL INSTRUMENTS) WITH RESPECT TO APPLICATION OF EXPECTED CREDIT LOSSES METHOD
SECP vide S.R.O. 985 (I)/2019 dated the 2nd September, 2019 granted exemption from the requirements of “IFRS 9 (Financial Instruments) with respect to application of Expected Credit Losses method” till 30th June 2021 to all companies holding financial assets due from the Government of Pakistan, provided that such companies shall follow relevant requirements of IAS 39 – Financial Instruments: Recognition and Measurement, in respect of above referred financial assets during the exemption period.
S.R.O. 986 (I)/2019
EXEMPTION FROM REQUIREMENTS OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRS”) TO ALL COMPANIES THAT HAVE EXECUTED THEIR POWER PURCHASE AGREEMENTS BEFORE JANUARY 1, 2019
SECP vide S.R.O. 986 (I)/2019 dated 2nd September, 2019 grants exemption from requirements of International Financial Reporting Standards (“IFRS”) to all companies that have executed their power purchase agreements before January 1, 2019, as follows-
- IFRS 16 (Leases) to the extent of the power purchase agreements executed before the effective date of IFRS 16 i.e. January 1, 2019;
- International Accounting Standard 21 (The Effects of Changes in Foreign Exchange Rates) to the extent of capitalization of exchange differences; and
- In case of capitalization of exchange differences under (b) above, recognition of embedded derivative under IFRS 9 (Financial Instruments) shall not be permitted.