01-21-2009, 10:27 PM
Dear,
The president of Pakistan has issued Companies (Amendment) Ordinance, 2009 to promulgate the above press release as a binding law. The URL link is given below
http//www.secp.gov.pk/corporatelaws/pdf/Comp_ord_amend.pdf
However, it appears further regulations will be issued to provide for certain procedures under this Ordinance.
President cannot issue an Ordinance if the National Assembly is in session. It's peculiar but I could not find out the date of issuance of this Ordinance either from the text or the website of SECP to check whether or not National Assembly was in session on that date. I mentioned it here so that some body may help me in this regard.
Accounting treatment and procedure under section 95A of the Companies' Ordinance, 1984 was prescribed earlier on but I believe it would be different now.
In my view, it would be simple purchase and sale transcation of securities in case the bought back shares are not cancelled. These will appear as treasury shares (investment) on assets side and continue as equity (share capital) on liabilities side in the balance sheet. Now, I can't say with certainity that how these will be classified; either under IAS 39 or otherwise, and what will be the measurement basis on each balance sheet date. I think the upcoming regulations should elaborate this fact. To my apprehension, the classification should be as per IAS 39.
In other case (where shares will be cancelled) the earlier procedure of section 95 A of the Companies' Ordinance, 1984 will be followed, I guess.
Let's see what regulations will come up with.
Regards,
KAMRAN.
The president of Pakistan has issued Companies (Amendment) Ordinance, 2009 to promulgate the above press release as a binding law. The URL link is given below
http//www.secp.gov.pk/corporatelaws/pdf/Comp_ord_amend.pdf
However, it appears further regulations will be issued to provide for certain procedures under this Ordinance.
President cannot issue an Ordinance if the National Assembly is in session. It's peculiar but I could not find out the date of issuance of this Ordinance either from the text or the website of SECP to check whether or not National Assembly was in session on that date. I mentioned it here so that some body may help me in this regard.
Accounting treatment and procedure under section 95A of the Companies' Ordinance, 1984 was prescribed earlier on but I believe it would be different now.
In my view, it would be simple purchase and sale transcation of securities in case the bought back shares are not cancelled. These will appear as treasury shares (investment) on assets side and continue as equity (share capital) on liabilities side in the balance sheet. Now, I can't say with certainity that how these will be classified; either under IAS 39 or otherwise, and what will be the measurement basis on each balance sheet date. I think the upcoming regulations should elaborate this fact. To my apprehension, the classification should be as per IAS 39.
In other case (where shares will be cancelled) the earlier procedure of section 95 A of the Companies' Ordinance, 1984 will be followed, I guess.
Let's see what regulations will come up with.
Regards,
KAMRAN.
