Pakistan Financial Statements & Reporting

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

Section 1 — Quick Reference

Field	Value
Sole proprietor / freelancer	No statutory financial statements — keeps accounts and files the income tax return + wealth statement (see pk-bookkeeping)
AOP (partnership)	Accounts supporting the AOP return; financial statements per the partnership
Company (Pvt/Public)	Financial statements under IFRS (or IFRS for SMEs / AFRS for smaller companies), filed with SECP
Audit	Companies above size thresholds require a statutory audit; small private companies may be exempt (verify)
Authorities	FBR (tax); SECP (companies)
Currency	PKR
Skill version	1.0

Section 2 — Who prepares what (Tier 1)

• Sole proprietor / freelancer: no statutory financial statements. The obligation is the income tax return + wealth statement via IRIS, supported by simple accounts. This is the key point for most freelancers.
• AOP: maintains accounts to support its return; no SECP filing.
• Company: prepares financial statements under the applicable standard (IFRS, IFRS for SMEs, or the AFRS for small companies), has them audited where required, and files with SECP (and with the tax return).

Section 3 — Worked example

A solo IT freelancer (sole proprietor): prepares no statutory financial statements — files the IRIS return + wealth statement with supporting accounts. If they incorporate a (Pvt) Ltd, SECP financial-statement and (often) audit obligations begin.

Section 10 — Prohibitions

• NEVER tell a sole proprietor/freelancer they must file statutory financial statements (they file the tax return + wealth statement).
• NEVER assume full IFRS for a small company — the size-based standard (IFRS for SMEs / AFRS) may apply.
• NEVER state audit/size thresholds without verifying the Companies Act / SECP rules.

Disclaimer

Informational only; not advice. Verify reporting standards, audit, and filing thresholds with SECP and the FBR. All outputs must be reviewed and signed off by a qualified Pakistani practitioner. Maintained at openaccountants.com.