08-30-2007, 04:36 PM
Dear Mr. Mahmood,
It's nice to see you at the forum after a long time.
ICAP has yesterday issues a circular which I am pasting hereunder
QUOTE
Circular No. 05/2007 August 29, 2007
ALL MEMBERS OF THE INSTITUTE
NOTIFICATION OF ACCOUNTING AND FINANCIAL REPORTING STANDARDS FOR MEDIUM-SIZED ENTITIES (MSEs) AND SMALL-SIZED ENTITIES (SSEs) AND REVISION OF THE FIFTH SCHEDULE TO THE COMPANIES ORDINANCE, 1984
Dear Member
On the recommendation of the Institute of Chartered Accountants of Pakistan (ICAP) the Securities and Exchange Commission of Pakistan (SECP) vide SRO No. 860(I)/2007 dated August 21, 2007 has notified the Accounting and Financial Reporting Standards for MSEs and SSEs issued by ICAP under Section 234(3) of the Companies Ordinance, 1984.
As the above notification also necessitated appropriate amendments to the Fifth Schedule to the Companies Ordinance, 1984, therefore on the recommendation of the ICAP, the SECP vide SRO 859(I)/2007 dated August 21, 2007 has also revised the said Fifth Schedule.
The above documents along with Accounting and Financial Reporting Standards for MSEs and SSEs may be downloaded from ICAP website using the following link
http//www.icap.org.pk/news/notificationsecp.htm
Members are advised to note the above.
Thanking you
Yours truly
Shahid Hussain
Director Technical Services
UNQUOTE
The standard for medium size entities is basically an epitome of the IFRSs in a broad spectrum.
As per my info AFF has currently adopted the practice to draw up the profit and loss account of all such entities for charging up the pre-incorporation expenses and advises the clients not to take up any amount to deferred cost.
I have yet to study the fifth schedule (revised) so I cannot precisely comment on the issue, but I personally feel that no pre-incorporation expense should now be deferred and the companies should draw up profit and loss account even if these are not in operation so far. Any loss will be taken to the balance sheet.
I will come back to you soon after having a look on the pronouncements.
Best regards,
Kamran.
It's nice to see you at the forum after a long time.
ICAP has yesterday issues a circular which I am pasting hereunder
QUOTE
Circular No. 05/2007 August 29, 2007
ALL MEMBERS OF THE INSTITUTE
NOTIFICATION OF ACCOUNTING AND FINANCIAL REPORTING STANDARDS FOR MEDIUM-SIZED ENTITIES (MSEs) AND SMALL-SIZED ENTITIES (SSEs) AND REVISION OF THE FIFTH SCHEDULE TO THE COMPANIES ORDINANCE, 1984
Dear Member
On the recommendation of the Institute of Chartered Accountants of Pakistan (ICAP) the Securities and Exchange Commission of Pakistan (SECP) vide SRO No. 860(I)/2007 dated August 21, 2007 has notified the Accounting and Financial Reporting Standards for MSEs and SSEs issued by ICAP under Section 234(3) of the Companies Ordinance, 1984.
As the above notification also necessitated appropriate amendments to the Fifth Schedule to the Companies Ordinance, 1984, therefore on the recommendation of the ICAP, the SECP vide SRO 859(I)/2007 dated August 21, 2007 has also revised the said Fifth Schedule.
The above documents along with Accounting and Financial Reporting Standards for MSEs and SSEs may be downloaded from ICAP website using the following link
http//www.icap.org.pk/news/notificationsecp.htm
Members are advised to note the above.
Thanking you
Yours truly
Shahid Hussain
Director Technical Services
UNQUOTE
The standard for medium size entities is basically an epitome of the IFRSs in a broad spectrum.
As per my info AFF has currently adopted the practice to draw up the profit and loss account of all such entities for charging up the pre-incorporation expenses and advises the clients not to take up any amount to deferred cost.
I have yet to study the fifth schedule (revised) so I cannot precisely comment on the issue, but I personally feel that no pre-incorporation expense should now be deferred and the companies should draw up profit and loss account even if these are not in operation so far. Any loss will be taken to the balance sheet.
I will come back to you soon after having a look on the pronouncements.
Best regards,
Kamran.
