Circular 3/ 2007- NOTIFICATION OF IAS 41, IFRS 2, 3, 5 AND 6

On the recommendations of the Council of the Institute made in its 171st meeting held on April 29,2005, the Securities and Exchange Commission of Pakistan (SECP) vide its SRO 430(I)/2007 dated May 22, 2007 notified IAS 41 under Section 234(3) of the Companies Ordinance, 1984.

It may also be noted that earlier on the recommendations of the Council made in its 180th meeting held on April 28, 2006, SECP has already notified IFRS 2, 3, 5 and 6 vide its SRO 1228 (I)/2006 dated December 6, 2006 under Section 234(3) of the Companies Ordinance, 1984.

Members are informed that the IAS 41, IFRS 2, 5 and 6 will be effective for accounting periods beginning on or after the date of relevant notification.

However, IFRS 3 shall apply to the accounting for business combinations for which the agreement date is on or after the date of notification. This IFRS shall also apply to the accounting for:
(a) goodwill arising from a business combination for which the agreement date is on or after date of notification; or
(b) any excess of the acquirer’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities over the cost of a business combination for which the agreement date is on or after the date of notification.
Members are advised to note the above.