Regulatory Alerts2019-11-20
Added · Updated
General Takaful Accounting Regulations, 2019
The Securities and Exchange Commission of Pakistan mandates General Takaful Accounting Regulations, 2019, effective for accounting periods commencing on or after January 1, 2020. These regulations require Takaful operators and window Takaful operators to prepare regulatory returns and published financial statements in accordance with International Financial Reporting Standards and Islamic Financial Accounting Standards, while repealing specific provisions of the Insurance Rules, 2017 and Insurance Accounting Regulations, 2017. The document prescribes specific accounting treatments for contributions, wakala fees, Qard-e-Hasna, claims liabilities, re-takaful expenses, and acquisition costs, and defines segment analysis thresholds for gross contributions exceeding ten percent. Window Takaful operators must disclose their operations as single line items in financial statements and submit separate regulatory returns, including a specific solvency form for their Takaful business.