I want to confirm the applicability of IAS in Pakitsn. My understanding is as follows
All IAS are applicable in Pakistan which are adopted by ICAP and SECP.
The recognition and measurement criteria of transactions as mentioned in adopted IAS are applicable to all companies i.e listed and unlisted.
However the disclosure requirements of IAS are only appicable to listed companies. Further, if there is specific departure of provisions of Companies Ordinance, 1984 from IAS then the provisions of Companies Ordinance, 1984 will prevail.
Plz give your comments on the above.
Thankx.
I think you are right in most of the counts except the disclosure thing.
A company does not maintain two accounts in Pakistan .. one for accounting and other for disclosure.. it means that private and unlisted companies need not necessarily follow the IAS in their accounting disclosure/policies when preparing their accounts.
SO the rule if you are listed follow IAS adopted by SEC and ICAP in addition to CO LAW (which is overriding)
and if unlisted/private go with CO LAW only... u can go for IAS if you like
I am not saying of Companies having two books of accounts.
What I want to say is that All companies should follow the recognition and measurement requirments of IAS.
However for diclsoure, which only relates to the Preparation of financial statements, and have no link with the books of accounts, only Listed Companies are required to follow the requiremnts of IAS in accordance with provisions of C.O. 1984.
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I want to confirm the applicability of IAS in Pakitsn. My understanding is as follows
All IAS are applicable in Pakistan which are adopted by ICAP and SECP.
The recognition and measurement criteria of transactions as mentioned in adopted IAS are applicable to all companies i.e listed and unlisted.
However the disclosure requirements of IAS are only appicable to listed companies. Further, if there is specific departure of provisions of Companies Ordinance, 1984 from IAS then the provisions of Companies Ordinance, 1984 will prevail.
Plz give your comments on the above.
Thankx.
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Nauman, Your understanding is right
S M R