SECP Issues New Disclosure Requirements of Financial Statements by Listed Companies

SECP Issues New Disclosure Requirements of Financial Statements by Listed Companies The Securities and Exchange Commission of Pakistan (SECP) has issued new disclosure requirements of financial statements by listed companies and their subsidiaries, which are not engaged in Shariah non-permissible business activities as their core business activities. The SECP has issued S. R. O.1278(I)/2024 to amend the Fourth Schedule to the Companies Act, 2017. According to the new amendments, every listed company and its subsidiary, which is not engaged in Shariah non-permissible business activities as their core business activities, shall disclose the following in their standalone and consolidated financial statements as per Section 228 of the Securities Act, as separate disclosures by way of a note that is cross-referenced with relevant notes. Disclosures required in relations to the Statement of Financial Position—Liability Side: Disclosures Required in the Statement of Financial Position – Asset Side: Disclosures Required in relation to the Statement of Comprehensive Income: Other Disclosure Requirements are: For the purposes of this provision, Shariah non-permissible business activities  shall include but not be limited to business of conventional financial institutions, including  conventional banks, insurance, interest-based lending, gambling and betting, liquor and  liquor-related activities, pork and pork-related activities, non-halal food and beverages,  Shariah non-compliant entertainment, tobacco and tobacco-related activities, and other  activities that are deemed Shariah non-permissible, SECP added.