02-07-2009, 06:22 PM
Dear,
Escape is no solution if we are talking professionally. I believe it. I was just avoiding a lengthy discussion particular to one of your queries that what efforts ICAP has made and which local standards/pronouncement it has issued.
That's why I asked you about financial reporting framework. If you know it in detail, you must come to know what ICAP has so far done despite taking the lead in adopting IFRSs/IASs which is considered most logical across the globe and is also pursuant to decisions taken by the Govt. (CLA/SECP).
Why an economy need to follow IFRSs is also a thing to be understood properly and needs lots of inputs for getting explained. This is an era of GDRs/ADRs and cross border deals of listed securities. World is striving for a worldwide common stock market where securities could be traded beyond the barriers of borders and lines of control etc. IOSCO always wanted a global convergence of financial reporting standards to facilitate easier cross border offerings and deals. World is getting the shape of a global village. IFAC is assiduously trying to reach harmony with US standard setters for such convergence. Pakistani companies like OGDCL and MCB have experienced GDR issuance and have taken all the benefits of such deals.
In whole scenario the ones who say that national standards should be developed and IFRSs must not be followed are just pulling the economy and the nation to a dark age. What a joke, first develop all localized standards then start their convergence and put the world in a new game, despite your are not even a teddy bear in front of those mammoths. Who will come to deal with your markets if you will be using a different reporting framework. This needs research to know why developing nations opt for using IFRSs, specially those whose economy is not that strong and advantageous.
Still, I agree there could be some areas where compliance with IFRSs may not be possible for a country. Even in Pakistan, ICAP has always been issuing Technical Releases (TRs and ATRs) where some difference was apparent more specifically due to overriding impact of companies law. One needs to understand what status such TRs have in applicable financial reporting framework.
Apart from this historical effort, a need was felt that medium and small entities (there are certain parameters to define what is included in such entities) may not be in a position to fulfill all the complete requirements of IFRSs. ICAP therefore devised Accounting and Financial Reporting Standards for Medium and Small entities locally which have been made part of legally enforceable financial reporting framework by SECP through Companies Ordinance, 1984. Such entities are allowed to deviate from IFRSs and opt such applicable standards, unless they become significant entities, in which case they will have to follow IFRSs. This is quite logical as these medium/small entities have no bearing when we talk in globalize perspective. However, it may be noted that such local standards do not materially variate from IFRSs. Only the complicated and complex requirements have been taken out and these have been made very concise and short.
ICAP has an advisory role and SECP, SBP, FBR (in specific) and industry at large (in general) have been getting advices on all technical matters. A complete set of such technical opinions is available on ICAP's website. For professional firms, ICAP has developed guidelines, manuals, programs, procedures, ICQs and so much apart from the self regulation through directives and bylaws.
Remember, this is not a complete picture. I have just picked some points to direct your attention towards the answer of your question.
I have replied your question in the Tax sub-forum.
I am doing nothing here except to encourage the part qualified or newly entered students as well as joining hands with professionals to promote the knowledge and professional understanding. I have all the regards for all of professionals and students. However, I feel students may not have a full grip of a given subject. (Even qualified people can lack some areas). This is not a disgrace.
I am also endeavoring to form a real life forum where the selective qualified professionals from firms (mainly partners) will participate to discuss their issues. Idea behind this effort is to find the issues and problems which one may not be identifying at its own by sharing them and to provide solutions developed through a readily available consensus. This idea has been conceived by the partner of a big firm. I mean its not my idea. A forum will be formed and participants would be available to each other through mails and by having monthly or bi-monthly meetings.
I know no body can compel any one to post here or reply any query.
Regards,
KAMRAN.
Escape is no solution if we are talking professionally. I believe it. I was just avoiding a lengthy discussion particular to one of your queries that what efforts ICAP has made and which local standards/pronouncement it has issued.
That's why I asked you about financial reporting framework. If you know it in detail, you must come to know what ICAP has so far done despite taking the lead in adopting IFRSs/IASs which is considered most logical across the globe and is also pursuant to decisions taken by the Govt. (CLA/SECP).
Why an economy need to follow IFRSs is also a thing to be understood properly and needs lots of inputs for getting explained. This is an era of GDRs/ADRs and cross border deals of listed securities. World is striving for a worldwide common stock market where securities could be traded beyond the barriers of borders and lines of control etc. IOSCO always wanted a global convergence of financial reporting standards to facilitate easier cross border offerings and deals. World is getting the shape of a global village. IFAC is assiduously trying to reach harmony with US standard setters for such convergence. Pakistani companies like OGDCL and MCB have experienced GDR issuance and have taken all the benefits of such deals.
In whole scenario the ones who say that national standards should be developed and IFRSs must not be followed are just pulling the economy and the nation to a dark age. What a joke, first develop all localized standards then start their convergence and put the world in a new game, despite your are not even a teddy bear in front of those mammoths. Who will come to deal with your markets if you will be using a different reporting framework. This needs research to know why developing nations opt for using IFRSs, specially those whose economy is not that strong and advantageous.
Still, I agree there could be some areas where compliance with IFRSs may not be possible for a country. Even in Pakistan, ICAP has always been issuing Technical Releases (TRs and ATRs) where some difference was apparent more specifically due to overriding impact of companies law. One needs to understand what status such TRs have in applicable financial reporting framework.
Apart from this historical effort, a need was felt that medium and small entities (there are certain parameters to define what is included in such entities) may not be in a position to fulfill all the complete requirements of IFRSs. ICAP therefore devised Accounting and Financial Reporting Standards for Medium and Small entities locally which have been made part of legally enforceable financial reporting framework by SECP through Companies Ordinance, 1984. Such entities are allowed to deviate from IFRSs and opt such applicable standards, unless they become significant entities, in which case they will have to follow IFRSs. This is quite logical as these medium/small entities have no bearing when we talk in globalize perspective. However, it may be noted that such local standards do not materially variate from IFRSs. Only the complicated and complex requirements have been taken out and these have been made very concise and short.
ICAP has an advisory role and SECP, SBP, FBR (in specific) and industry at large (in general) have been getting advices on all technical matters. A complete set of such technical opinions is available on ICAP's website. For professional firms, ICAP has developed guidelines, manuals, programs, procedures, ICQs and so much apart from the self regulation through directives and bylaws.
Remember, this is not a complete picture. I have just picked some points to direct your attention towards the answer of your question.
I have replied your question in the Tax sub-forum.
I am doing nothing here except to encourage the part qualified or newly entered students as well as joining hands with professionals to promote the knowledge and professional understanding. I have all the regards for all of professionals and students. However, I feel students may not have a full grip of a given subject. (Even qualified people can lack some areas). This is not a disgrace.
I am also endeavoring to form a real life forum where the selective qualified professionals from firms (mainly partners) will participate to discuss their issues. Idea behind this effort is to find the issues and problems which one may not be identifying at its own by sharing them and to provide solutions developed through a readily available consensus. This idea has been conceived by the partner of a big firm. I mean its not my idea. A forum will be formed and participants would be available to each other through mails and by having monthly or bi-monthly meetings.
I know no body can compel any one to post here or reply any query.
Regards,
KAMRAN.
