The Securities and Exchange Commission of Pakistan (SECP) is assessing the implementation of the IFRS Sustainability Disclosure Standards in Pakistan.
This initiative will include a public consultation process to determine appropriate criteria and timelines for adoption.
The Institute of Chartered Accountants of Pakistan has recommended the adoption of the IFRS Sustainability Disclosure Standards, comprising IFRS-S1 ‘General Requirements for the Disclosure of Sustainability-Related Financial Information’ and IFRS-S2 ‘Climate-related Disclosures’.
IFRS-S1 requires disclosure of data on sustainability-related risks and opportunities that could impact an entity’s cash flow, financial accessibility or cost of capital.
IFRS-S2 describes the criteria for locating, quantifying and communicating information related to climate-related risks and opportunities.
The standards will be phased in, with the first phase commencing for annual reporting periods beginning on or after January 1, 2025.
The next phases will be rolled out in January 2026 and 2027.
Companies are selected based on criteria such as total assets, turnover and number of employees.
The SECP has proposed that companies will receive assurance about their sustainability reporting from their accountants from the second year of reporting under the new standards.
This move is a step in SECP’s environmental, social and governance regulatory roadmap, as reported Business recorder.
The application of these standards aims to increase transparency through standardized sustainability reporting, improve risk management and encourage the integration of sustainable business practices into business strategies.
Furthermore, the aim is to facilitate better informed decision-making by stakeholders.
In September, the SECP extended the corporate regularization scheme by one month, now effective until October 15, 2024.
This extension offers companies that have fallen behind in filing their returns the opportunity to regularize their status without incurring late payment penalties.
“Pakistan’s SECP Considers Adoption of IFRS Sustainability Disclosure Standards” was originally created and published by The accountanta brand owned by GlobalData.
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