Assets due from govt viz circular debt: Requirements contained in IFRS 9 waived off: SECP

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has waived off a requirement for submission of financial instruments by the companies, holding financial assets due from the government in respect of circular debt, till June 30, 2022.

The SECP has issued a notification here on Monday.

Covid-19 impact: FIs required to implement IFRS 9 from Jan 1, 2022

According to the notification, the SECP has notified that, in respect of companies holding financial assets due from the government of Pakistan in respect of circular debt, the requirements contained in “IFRS 9 (Financial Instruments) with respect to application of Expected Credit Losses method” shall be not be applicable till June 30, 2022.

This is subject to the condition 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, the SECP added.

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