SECP allows medium and small entities to opt for IFRS

recorder report

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has allowed Medium-Sized Entities and Small-Sized Entities to opt for International Financial Reporting Standards (IFRS) notified by the commission for the preparation of financial statements.

The SECP has amended Third Schedule of the Companies Act, 2017 through an SRO 1092 (I)/2018 here on Thursday.

According to the notification, the medium-sized companies that are otherwise required to follow IFRS for SMEs and accounting standards for non-profit organizations (NPOs), may opt to follow the IFRS notified by the Commission for the preparation of financial statements.

The small-sized companies that are otherwise required to follow revised AFRS for Small-Sized Entities (SSEs), may opt to follow IFRS notified by the Commission or IFRS for SMEs.

Following is the text of SRO issued on Thursday:

SRO 1092 (I)/2018.- In exercise of the powers conferred by sub-section (2) of section 507 of the Companies Act, 2017 (Act No. XIX of 2017), the Securities and Exchange Commission of Pakistan is pleased to make following amendments in the Third Schedule to the Companies Act, 2017, namely,-

In the note, at the end of table, after paragraph (4), the following new paragraphs shall be inserted, namely:-

“5. The medium-sized companies that are otherwise required to follow IFRS for SMEs and Accounting Standards for NPOs may opt to follow the IFRS notified by the Commission for the preparation of financial statements.

“6. The small-sized companies that are otherwise required to follow revised AFRS for SSEs may opt to follow IFRS notified by the Commission or IFRS for SMEs.”