ISLAMABAD, March 25, 2025: Institute of Chartered Accountants of Pakistan (ICAP) has issued comprehensive Guidelines on application of IFRS 9 Expected Credit Loss Model on circular Debt.Earlier, the Securities and Exchange Commission of Pakistan (SECP) had temporarily deferred applicability of the IFRS-9 Expected Credit Losses (ECL) model only for companies holding financial assets, due directly or ultimately due from the Government of Pakistan in respect of inter-corporate circular debt, till the financial year ending on or before December 31, 2025, considering the development of Guidelines by ICAP.
SECP expects that subject Guidelines by ICAP will assist relevant companies to apply the requirements of IFRS 9 on circular debt, leading to complete implementation of IFRS 9 by these companies as per the timeline already specified by SECP.
