The Securities and Exchange Commission of Pakistan vide S.R.O. 67(1)/2023, dated 20 January 2023, in exercise of powers conferred by section 510 read with sub-section (3) of section 225 of the Companies Act, 2017 (Act No. XIX), in partial modification of its previous S.R.O. 1177 (1)/2021, dated 13 September 2021, has notify that, in respect of companies holding financial assets, due or ultimately 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 not be applicable on such financial assets for financial years ending on or before December 31 2024.
Provided that such companies shall follow relevant requirements of IAS 39-Financal Instruments: Recognition and Measurement, in respect of above referred financial assets during the exemption period.
