Financial Reporting and Corporate Reporting
The reporting framework
Listed and large entities in Pakistan apply IFRS as adopted and notified by SECP, presented under the Companies Act 2017 (Fourth Schedule) with an auditor's report under the ISA 700 series. Be fluent in IFRS 15 (five-step revenue model), IFRS 16 (single lessee model - leases now inflate both EBITDA and gearing), IFRS 9 (expected credit losses, classification and measurement), IFRS 10/IFRS 3 (control, goodwill, non-controlling interests), IAS 36 (impairment; goodwill impairment cannot be reversed), IAS 37 (a provision needs a present obligation at the reporting date), IAS 12 (deferred tax), IAS 19, IAS 21, IFRS 5, IFRS 8 and IAS 33. Corporate reporting also covers the directors' report, related-party disclosures, segment data and ESG/sustainability narrative.
Traps
Gross versus net revenue under IFRS 15 - is the entity a principal (controls the good) or an agent (earns a commission)? Restructuring provisions recognised before a plan is announced and a valid expectation created. Goodwill impairment 'reversed' in a good year. Deferred tax ignored on fair value adjustments in a business combination.
Worked example
A contract prices a machine plus two years of maintenance at Rs 100m. Standalone selling prices are Rs 90m and Rs 30m (total Rs 120m). Allocate: machine 100 x 90/120 = Rs 75m, recognised on delivery; maintenance 100 x 30/120 = Rs 25m, recognised straight-line at about Rs 1.04m per month. Revenue follows performance obligations, not invoicing.