Accounting Articles
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Implementation of Value-Added Tax (VAT)
Value-added Tax (VAT), or GST in VAT mode is usually implemented in robust/sustained economies but fortunately (or rather unfortunately ) these days Pakistan has become an economic laboratory of IMF which is in the process of experimenting with the effects of implementing VAT in a country passing through recessionary period. -
Overcoming Mistakes Made During the Recession
The recession has put managers to the test in ways they likely had not experienced in the past. Often, choices were made to reduce costs that weren't planned out as strategically as they would have been in other times, and companies already are beginning to regret some decisions that were made too quickly. -
Value-added Tax (VAT) as an instrument
Around 70 per cent of the world’s population now lives in countries with a value-added tax (VAT) which is essentially an alternative method of collecting what most people would readily understand as a sales tax. The acceptance of a value-added type of tax as a revenue instrument is largely based on the fact that it has raised more revenue than the sales/turnover tax it replaced. -
Issues in Enforcing Value-added Tax
The federal government intends to introduce value-added tax from July 1, at a proposed flat rate of 15 per cent. The VAT will replace general sales tax in most cases and bring into the tax net some hitherto untaxed classes of retailers and suppliers. Meanwhile, businessmen are voicing their concerns over the manner in which the VAT is being introduced. -
An Alternate Approach to Practiced Islamic Corporate Finance
Islamic finance has been criticized by some circles for using conventional benchmarks in pricing products, using more or less the same product structure and predominantly using debt based modes of financing. This research article takes an alternative approach and goes beyond practiced Islamic finance to suggest an alternative financial framework.
Accounting News
Economic and Finance News
Highlights of the the Federal Budget 2010-11
KARACHI (June 06, 2010) - The finance minister yesterday announced the federal budget for 2010-2011 in the parliament. The highlights of the budget are listed below.
FBR Waives Annual Sales Tax Audit Requirement for Steel Melters/ Re-rollers
ISLAMABAD (May 26, 2010) - The Federal Board of Revenue (FBR) has withdrawn the condition of compulsory sales tax audit of steel melters and re-rollers annually, who opt to pay sales tax ad valorem under Sales Tax Special Procedure Rules 2007. The FBR has amended Sales Tax Special Procedure Rules 2007 through a notification issued here on Tuesday.
SECP Act 2010 Draft Proposal: Destruction of documents to be a serious offense
ISLAMABAD (May 26, 2010) - Securities and Exchange Commission of Pakistan Act 2010 will consider destruction of documents by companies as a serious offense in case a person deliberately destroys, falsifies, conceals or disposes of any document which is required during inspection or investigation by the commission.
SBP exempts Microfinance Banks' time deposits from Cash Reserve Requirement
KARACHI (May 14, 2010) - State Bank of Pakistan (SBP) has decided to exempt time deposits of one-year tenor and above, held by microfinance banks (MFBs) for maintenance of Cash Reserve Requirement (CRR), and time liabilities of one year tenor and above for maintenance of Statutory Liquidity Requirement (SLR).
VAT Regime: Verification of Invoices Biggest Challenge for FBR
ISLAMABAD (April 20, 2010) - The verification of invoices and cross-matching of reported sales and purchases within the entire supply chain is the biggest challenge being faced by the Federal Board of Revenue in the implementation of the Value Added Tax from next fiscal year.
Recent Economic & Finance News
- Documents not needed for Sales Tax refund through Electronic Refund Claim: FBR
- Violation of Securities Laws: SECP Penalizes Stockbrokers, Stakeholders
- SECP to make e-listing of new companies mandatory
- Tax Clearing House for implementation of E-payment/refund facility through banks
- SECP may give powers to its Enforcement Department to monitor and examine companies' accounts
Accounting Profession News
ACCA Releases Discussion Paper on Gender Diversity on Boards in Pakistan
KARACHI (August 10, 2010) - ACCA Pakistan recently organised a discussion forum on 'Gender Diversity on Boards in Pakistan' in conjunction with the launch of a discussion paper having the same title. The forum was paneled by key personnel from Pakistani public practice, corporate and public sectors.
G20's four pillars for agenda reform built on uneven foundations: ACCA
KARACHI (July 06, 2010) - The global body for accountants, ACCA (the Association for Chartered Certified Accountants) has responded to last week's G20 meeting by saying that its "pillars for agenda reform" are built on shaky ground.
Accountants More Optimistic Despite Concerns for Global Economic Conditions: ACCA Survey
KARACHI (June 22, 2010) - The threat posed by levels of sovereign debt and rising inflation to the global economic recovery has been highlighted in the worlds largest regular survey of professional accountants. The Global Economic Conditions Survey for the second quarter of 2010 by ACCA shows that, for the first time, the majority of global respondents now believe that conditions are either improving or about to.
ICAP Holds Seminar on Key Changes to International Standards on Auditing (ISA)
KARACHI (June 03, 2010) - In 2009 International Auditing and Assurance Standards Board (IAASB) completed its Clarity Project regarding the International Standards on Auditing (ISAs). In view of the significance of the subject and its impact on the auditing profession in Pakistan, the Southern Regional Committee of the Institute of Chartered Accountants Pakistan recently organized a seminar to present the key changes made to the ISAs as a result of the Clarity Project.
ACCA calls on G20 nations to drive reform of the global financial agenda
KARACHI (May 26, 2010) - As the Group of Twenty nations (G20) prepares to meet in Toronto next month, ACCA (the Association of Chartered Certified Accountants) has put forward its key recommendations for global policy-makers.
Accounting Education News
Over 6,000 students worldwide take major step towards becoming ACCA members
KARACHI (August 24, 2010) - Results from the latest examinations of ACCA (the Association of Chartered Certified Accountants) show that more than 6,000 students around the world successfully completed their final papers to become affiliates and move closer to membership of the global body for professional accountants.
ACCA launches Foundations in Accountancy awards
KARACHI (Jul 19, 2010) - ACCA Pakistan has announced Foundations in Accountancy, a new suite of entry-level awards designed with both students and employers in mind. Foundations in Accountancy is being introduced after detailed consultation with employers, learning providers, members, students and other professional accountancy bodies and regulators.
ACCA and PIFRA Sign MoU for Financial English Training
KARACHI (June 11, 2010) - ACCA Pakistan has reiterated the value of ICFE (International Certificate in Financial English) to its partners in the corporate and public sectors by recently signing a memorandum of understanding with PIFRA (Project for Improvement of Financial Reporting and Auditing).
Results from ACCA Show Continuing Rise in Demand for Accountants
KARACHI (April 26, 2010) - ACCA (the Association of Chartered Certified Accountants) continues to see growth in member and student numbers, reflecting the need for professional accountants, especially in the context of global economic conditions. The global membership of ACCA now stands at 140,000, a growth of 6.5 per cent from the 31 December 2008 figure of 131,500 members.
Recent Education News
Students and Education Articles
Why Islamic banking?
Islamic banking is based on Sharia that prohibits ‘riba’. According to religious scholars it means both usury and interest, and ‘gharar’, that signifies ambiguity, uncertainty, or lack of specificity in terms of a financial contract.
Accounting articles