05-31-2007, 06:06 PM
Dear,
Initially this matter was discussed for small and medium size companies only and any exmption, if given, was only for such companies. Small and medium size industries were supposed to have problems in adopting/implementing some of the standards due to a number of limitations including the availability of professionally qualified staff members. These companies were specifically defined under the then TR-5 issued by ICAP.
One must keep in mind that despite the amendments made in section 234 of CO84 by companies amendment ordinance 2002, there were some shortcomings/disagreements. These existed due to collasion of the provisions of sec 234 itself as well as due to the stuck-up revision-requiring Fourth and Fifth schedules to the CO84. This has so many time been discussed. Afterwards, Fourth schedule was changed/revised but no revision has so far been made for 5th schedule in spite of some debates recently. The position of private limited is still in doubt despite the sec 234 has required all companies to be compliant of International Accounting Standards due to collasion with its own provisions (where it exempts such companies from attaching cash flow statement and statement of changes in equity with financial statements) and due to the variant requirements of 5th schedule which does not even necessitate the disclosure of accounting plocies by such companies in their financial statements.
Therefore, it was suggested to identify small, medium and large companies for allowing any exemptions in this regard. Typically in all cases listed companies are large companies, therefore, the issue materially remains revolving around private companies.
However, the work remained in progress in this regard and so many suggestions were collected from number of professionals (CAs) by ICAP. Eventually, ICAP has developed acounting standards for Small and Medium sized companies/entities separately and these standards have been endorsed by SECP as well. These standards have been issued roughly at the end of July 2006. The previous TR-5 has now no effect and all such companies have to identify theirselves as small or medium companies/entities and have to adopt and implement these locally developed standards. These stndards have clearly laid down criteria according to which any company/entity could be judged as to whether it is a small company or a medium company. The requirements for small companies/entities are not enormous. However, if we put some attention on the standard set for medium size companies, we can conclude that so much of IFRSs' basic requirements and guidelines have been embedded in this standard and its compliance will approximately create some harmoney in the basic recognition and measurement criterias.
Now if you will see this standard for medium size companies, you will understand that so much stipulated there-in for investments is as per IAS-39.
You can download these standards from ICAP's website.
Hope you will find it beneficial.
Best regards,
Kamran.
Initially this matter was discussed for small and medium size companies only and any exmption, if given, was only for such companies. Small and medium size industries were supposed to have problems in adopting/implementing some of the standards due to a number of limitations including the availability of professionally qualified staff members. These companies were specifically defined under the then TR-5 issued by ICAP.
One must keep in mind that despite the amendments made in section 234 of CO84 by companies amendment ordinance 2002, there were some shortcomings/disagreements. These existed due to collasion of the provisions of sec 234 itself as well as due to the stuck-up revision-requiring Fourth and Fifth schedules to the CO84. This has so many time been discussed. Afterwards, Fourth schedule was changed/revised but no revision has so far been made for 5th schedule in spite of some debates recently. The position of private limited is still in doubt despite the sec 234 has required all companies to be compliant of International Accounting Standards due to collasion with its own provisions (where it exempts such companies from attaching cash flow statement and statement of changes in equity with financial statements) and due to the variant requirements of 5th schedule which does not even necessitate the disclosure of accounting plocies by such companies in their financial statements.
Therefore, it was suggested to identify small, medium and large companies for allowing any exemptions in this regard. Typically in all cases listed companies are large companies, therefore, the issue materially remains revolving around private companies.
However, the work remained in progress in this regard and so many suggestions were collected from number of professionals (CAs) by ICAP. Eventually, ICAP has developed acounting standards for Small and Medium sized companies/entities separately and these standards have been endorsed by SECP as well. These standards have been issued roughly at the end of July 2006. The previous TR-5 has now no effect and all such companies have to identify theirselves as small or medium companies/entities and have to adopt and implement these locally developed standards. These stndards have clearly laid down criteria according to which any company/entity could be judged as to whether it is a small company or a medium company. The requirements for small companies/entities are not enormous. However, if we put some attention on the standard set for medium size companies, we can conclude that so much of IFRSs' basic requirements and guidelines have been embedded in this standard and its compliance will approximately create some harmoney in the basic recognition and measurement criterias.
Now if you will see this standard for medium size companies, you will understand that so much stipulated there-in for investments is as per IAS-39.
You can download these standards from ICAP's website.
Hope you will find it beneficial.
Best regards,
Kamran.
