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Public Interest Company

As per Companies Act 2017 Section 2 ((53) “public interest company‖ means a company which falls
under the criteria as laid down in the Third Schedule to this Act or deemed to be such company under
section 216;

Classification of Companies Section 216 of the Companies Act 2017

Classification of companies and the applicable financial reporting framework for the respective types of
companies for preparation and audit of financial statements:
 Public Interest Company ( PIE)
o Listed PIC
o Non listed PIC
 Non-Public Interest Company ( PIE)
o Large Sized Company (LSC)
o Medium Sized Company (MSC)
o Small Sized Company (SSC)

The SECP has amended the Third Schedule and incorporated the option of use of higher framework by
small and medium sized companies

As per Section 216 of the Companies Act 2017 ,Company deemed to be a public interest company in
certain circumstances
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(1) Notwithstanding anything contained in this Act, a company shall be deemed to be a company with
public interest as envisaged in the Third Schedule. (copy with you)

(2) Upon being deemed as a company with public interest, the company shall be required to comply
with such disclosure and reporting requirements as may be specified by the Commission.

Reporting Framework in Pakistan

Section 224-225---Refer Third schedule of the Companies Act 2017

Financial reporting standards

• International Financial Reporting Standards (IFRS)

• International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs)

• Revised Accounting and Reporting Standard for Small-sized Entities (AFRS for SSEs)

Specialized financial reporting standards

•  Accounting Standard for Not for Profit Organizations (NPOs)

•  Islamic Financial Accounting Standards (IFAS)

Companies Act 2017

• Fourth and Fifth schedule of the Companies Act

• Other specific requirements of the Companies Act and related laws, regulations and rules

• Fourth and Fifth Schedules to the Companies Act requiring disclosures in addition to what the
financial reporting frameworks mandate for the preparation of financial statements.

Specialized financial reporting requirements

 Required under the law and related regulations applicable to specialized entities such as banks,
DFIs, insurance companies and modarba

Public Sector Company

As per Companies Act 2017 Section 2 (54) ―public sector company‖ means a company, whether public
or private, which is directly or indirectly controlled, beneficially owned or not less than fifty-one percent
of the voting securities or voting power of which are held by the Government or any agency of the
Government or a statutory body, or in respect of which the Government or any agency of the
Government or a statutory body, has otherwise power to elect, nominate or appoint majority of its
directors and includes a public sector association not for profit, licenced under section 42:
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Provided that nomination of directors by the Commission on the board of the securities exchange or any
other entity or operation of any other law shall not make it a public sector company;