TR-5 (Revised 2015) ‘Council’s Statement of Applicability’ was issued vide Circular No.2/2016 dated February 3, 2016, which requires compliance with the International Financial Reporting Standard for Small and Medium Sized Entities (IFRS for SMEs)’ issued by IASB and the ‘Revised Accounting and Financial Reporting Standard for Small-Sized Entities (SSEs)’ issued by the Institute of Chartered Accountants of Pakistan, notified by SECP vide SRO 929/2015 dated September 10, 2015. Both standards are applicable to the financial statements for the periods beginning on or after January 1, 2015.
It was brought to the knowledge of the Council that some medium sized and small sized companies are still following the previous compliance statement communicated through ICAP Circular 6 of 2007 dated November 02, 2007, and it is also going unnoticed by their auditors.
In view of the above, the Council in its 283rd meeting held on January 25, 2017 decided to issue the following Statement of Compliance, in supersession of Circular 6 of 2007 to be included in the financial statements of MSEs and SSEs using such standards:
“These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of *‘International Financial Reporting Standard for Small and Medium Sized Entities (IFRS for SMEs)’ issued by IASB / *‘ Revised Accounting and Financial Reporting Standard for Small-Sized Entities (SSEs)’ issued by the Institute of Chartered Accountants of Pakistan and provisions of and directives issued under the Companies Ordinance, 1984. In case requirements differ, the provisions or directives of the Companies Ordinance, 1984 shall prevail.”
* Delete whichever is not applicable
Members are advised to take note of the above.