Regulatory Alerts2025-03-03
Added · Updated
Insurance Accounting Regulations 2017 (Updated as of March 3, 2025)
The Securities and Exchange Commission of Pakistan mandates that insurers comply with International Financial Reporting Standards for the recognition and measurement of assets, liabilities, expenses, and revenues in both Regulatory Returns and Published Financial Statements. The regulations establish distinct accounting frameworks for life insurers under Part A and non-life insurers under Part B, covering specific requirements for premium recognition, insurance liabilities, reinsurance, and segment analysis. A March 3, 2025 amendment introduces new rules for recording advance, withholding, or refundable tax, requiring shareholders' funds to purchase adjustable tax amounts from statutory funds within one year. Insurers must adhere to these standards for annual accounts ending December 31, 2016, and quarterly accounts ending March 31, 2017, with full compliance required thereafter.