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ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has directed Takaful operators/ companies to disclose their Takaful results in their published financial statements.

This condition would be applicable on insurers whose window Takaful operations form 25 percent or more of their overall operations based on gross contribution.

According to the S.R.O. 311 (I) /2025 issued by the SECP, the SECP has amended General Takaful Accounting Regulations, 2019.

Requirements for life insurance products: SECP issues new directives to insurance cos, family Takaful operators

They would disclose their Takaful results in their published financial statements as follows:

(a) The assets and liabilities of the conventional operations shall be consolidated with the assets and liabilities of window general Takaful operations (i.e., OPF and PTF) in the statement of financial position of the insurer.

(b) The incomes and expenses of the conventional operations shall be consolidated with the incomes and expenses of the window general Takaful operations (i.e., OPF and PTF) in the profit and loss account or the statement of comprehensive income, as the case may be, of the insurer:

Provided that in the profit and loss account or the statement of comprehensive income, as the case may be, prior to arriving at the Profit/Loss) for the year of the entity, adjustment in respect of surplus/ (deficit) attributable to the PTF for the year shall be made.

(C) Supporting notes where considered necessary for the understanding of the users of the published financial statements may be included as part of the notes to the financial statements.

(D) Supporting notes to the financial statements shall provide complete break-up of conventional and window Takaful operations and the statement of financial position and the profit and loss account or the statement of comprehensive income, as the case may be, shall in footnote state that for break up of conventional and window Takaful operations, detailed notes to the financial statements may be referred.

(E) Segment disclosures for General Takaful Operations in accordance with the requirements of IFRS 8 – Operating Segments, shall be included in the published financial statements, SECP added.

Copyright Business Recorder, 2025

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