The Securities and Exchange Commission of Pakistan (SECP) has granted a "relaxation" of the requirements of IAS 39 by allowing impairment losses on available-for-sale (AFS) equity securities to be charged against equity, rather than against profit or loss as IAS 39 requires. The "relaxation" is valid till 31 December 2009.The "relaxation" was granted in response to requests from various stakeholders in Pakistan. The stakeholders believed that recognising impairment losses on AFS equity securities through profit or loss "will not reflect the correct financial performance of the corporate entities". Nonetheless, the SECP's said that "those companies who are willing to follow the full requirements of IAS 39 are encouraged to do so".
13 February 2009