Notification of the Relaxation from requirements of IFRS

SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

Notification

Islamabad, January 16, 2012

S.R.O. 24 (I)/2012, -- In exercise of powers conferred by subsection (5) of Section 234 of the Companies Ordinance, 1984 (the “Ordinance”), read with clause (c) of Section 43 of the Securities and Exchange Commission of Pakistan Act, 1997, S.R.O. 665(I)/2005 dated June 28, 2005 and in supersession of its Circular 11 of 2008, Circular 22 of 2009 and SRO-87(I)/2011 the Securities and Exchange Commission of Pakistan (“Commission”) hereby grants waiver, with immediate effect, from requirements of International Financial Reporting Standards (IFRS) as follows:

i) IFRIC 4 “Determining whether an arrangement contains a lease” and IFRIC 12 “Service Concession Arrangements” to all companies including Power Sector Companies; and

ii) International Accounting Standard 21, to the extent of requirements in respect of accounting principle of capitalization of exchange difference, to Power Sector Companies only.

Those power sector companies which have chosen to capitalize exchange differences shall not be permitted to recognize Embedded Derivatives under IAS 39 and for the period beginning on or after January 1, 2013 such companies are required to give as “Additional Disclosure” as if accounting for embedded derivative under IAS 39 [or any other standard replacing the said standard as the case may be] had been adopted in preparing the financial statements.

Aforesaid exemption is however subject to compliance with related disclosure requirements applicable in case of departure from any IFRS.

All companies that are not otherwise required to comply with IFRS are also allowed to avail the aforesaid exemption under their respective regulatory framework.

No.EMD/Misc/1/DI/2011

Abdul Rehman Qureshi
Advisor/Secretary