SECP rule relaxation likely to boost stocks

SECP rule relaxation likely to boost stocks   SECP granted relaxation in the accounting treatment for equity securities held by the companies under the head 'Available for Sale' (AFS) as required under International Accounting Standard "Financial Instrument: Recognition and Measurement" (IAS 39) on Friday. Under the IAS 39, investments by companies held under AFS category had to be adjusted to Profit and Loss account incase of impairment of fair value of investment below its carrying value. Under the relaxation offered through an SRO, the impairment in fair value of investment will be taken into 'equity' account rather than P&L. The move will benefit companies multiple sectors particularly banking, insurance and mutual funds and modarabas which have heavy investments in equity market.