ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has delayed the implementation of International Financial Reporting Standard-9 (IFRS) on listed companies.

The SECP had earlier notified the implementation of IFRS-9 through SRO 1007(I)/2017, on Oct 4, 2017, replacing the International Accounting Standard 39 with effect from reporting periods starting July 1, 2018.

However, following requests from several companies citing non-availability of relevant data, and the complexity of the new model, the SECP has deferred implementation of IFRS-9 on Friday. Moreover, the Institute of Chartered Accountants of Pakistan had also recommended the regulator to delay the implementation of IFRS 9.

The corporate sector had said that it faced multiple issues in implementing the standard including the time constraint for finalisation of financial statements for the period ending on Dec 31, 2018 and peculiar circumstances of various companies facing circular debt.

The regulator expects that the companies will benefit from the extension and prepare themselves for transition in order to ensure complete compliance with IFRS 9 by the new effective date. Meanwhile, the SECP has allowed early adoption of IFRS-9 for companies that wish to do so.

Section 225 of the Companies Act, 2017, empowers the SECP to notify financial reporting standards to the companies regarding their financial statements.

Published in Dawn, February 16th, 2019