The Institute of

Chartered Accountants
CA

PAKISTAN
of Pakistan HEAD OFFICE

Circular No.5/2016 May 13, 2016

ALL MEMBERS OF THE INSTITUTE

Dear Member

'ACCOUNTING STANDARD FOR NOT FOR PROFIT ORGANISATIONS (NPOs)'

Through SRO No. 413/2016 dated May 11, 2016 the Securities and Exchange Commission of Pakistan
(SECP) has further to its notification through SRO No. 929/2015 dated September 10, 2015 has directed
the non-listed companies formed /Iicensed under Section 42 and 43 of the Companies Ordinance, 1984
to follow applicable financial and accounting reporting standards .

80th the above SROs can be accessed through the SECP website:

http://www.secp.govpk/notification/pdf/2016/SRO- Signature Issuance under sub section 3 of section

234 of CO 84.pdf

http://www.secp.gov.pk/notification/pdf/2015/SRO 929 20150910. PDF

The aforesaid applicable financial and accounting reporting standards now include:
Accounting Standard for Not for Profit Organisations (NPOs) issued by the Institute of Chartered
Accountants of Pakistan (I CAP)

The NPO Standard can be downloaded from tCAP website using the following link:

http://www.icap.net.pk/wp-contentlu ploads/2013/12/Final-Accounting-Standard-for-NPOs-for-SECP .pdf

The above standard has been notified on the recommendation of ICAP.

Under the SECP directives, Accounting Standard for NPOs is to be applied by:

1. Public Interest Company and Large Sized Company licensed/formed under Section 42 and Section
43 of the Companies Ordinance, 1984 along with International Financial Reporting Standards (IFRSs)
as notified by the SECP.

2. Small and Medium Sized Company licensed/formed under Section 42 and Section 43 of the
Companies Ordinance , 1984 along with International Financial Reporting Standards on Small and
Medium Sized Entities (IFRS for SMEs) as notified by the SECP.

The SECP's directive to follow relevant accounting and financial reporting standards as provided in the
aforementioned SROs is applicable for annual financial period beginning on or after July 1, 2016.

Members are advised to take note of the above referred SROs.

r;)i:~

i~aira Shamsie
Sr. Manager Technical Services

(Established under the Chartered Accountants Ordinance, 1961 X of 1961)

Chartered Accountants Avenue, Clifton, Karachi-75600 (Pakistan). Ph : (92-21) 111-000-422, Fax: 99251626

Website : www.icap.org .pk. E-mail: info@icap .org .pk