Accounting Standards in Pakistan

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Accounting Standards in Pakistan - SalmanShehzad - 10-26-2004

Hi All

I hope you all are in best of shape and enjoyign life. I am seeking for some help from your people. Yesterday I was discussing with some one and I got confused. That which accounting standards are followed in Pakistan. I mean British or American. Because I always thought that in Pakistan we are following IAS (International Accounting Standards) which are prepared by IASC (International Accounting Standard Committee/board) which is a British body established in 1970âs but some one told me that IAS is product of FASB (American standard board). But I believe ICAP in Pakistan is following British rules and regulations.
I am sure I even read IAS book issued by ICAP it also states that they are London based that means its British but still if any one of you can clear it I will be highly thankful to him/her.

And secondly what is the standing of IFRS(International Financial Reporting Standards). Are they implemented? Will be implemented if yes then from when? And are they British or American based rules.

Thanks and Regards

Salman Shehzad
Lecturer
Mohammad Ali Jinnah University,
Islamabad Campus.
Phone 92-51-111-87-87-87 Ext 115
Mobile 92-303-7777237
www.jinnah.edu.pk

- smraza - 10-26-2004

We are following IAS issued by IASB London, UK, you are right in this regard. and IFRS are yet to be implemented soon, and we are expecting a major revision in around 12 to 15 IAS.

SMR

- SalmanShehzad - 10-26-2004

<BLOCKQUOTE id=quote>quote<hr height=1 noshade id=quote>
We are following IAS issued by IASB London, UK, you are right in this regard. and IFRS are yet to be implemented soon, and we are expecting a major revision in around 12 to 15 IAS.

SMR
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote>

Dear smraza
Thanks Allot for your reply and it has definitely cleared my confusion. and i really appreciate the utilization of this Form

Thanks and Regards

Salman Shehzad
Lecturer
Mohammad Ali Jinnah University,
Islamabad Campus.
Phone 92-51-111-87-87-87 Ext 115
Mobile 92-303-7777237
www.jinnah.edu.pk

- Pracs - 10-26-2004

Just to add to SMR's post, IASB is based in London, but is not a british body, the standards were developed by the body intially for developing countries (wherein US, UK, Australia and others continued to follow their own standards).

IAS is/will now be know as IFRS and the EU will be implementing these as their 'national' standards for listed companies.

So what we follow in Pakistan are IFRS which are neither British nor American, there are International standards. However, the standards are designed on the 'British' style and is closely moving towards the 'American' rule based standards.

"Allah does not change the state of people unless they change what is within themselves" Quran 1311

- SalmanShehzad - 10-27-2004

Dear Pracs
Thanks allot for your help and I am really glad to see your reply. Now kindly any one of you can give me the URL of any website from where I can study in this regard or any book reference so I will be highly great full to him or her

Thanks and Regards

Salman Shehzad
Lecturer
Mohammad Ali Jinnah University,
Islamabad Campus.
Phone 92-51-111-87-87-87 Ext 115
Mobile 92-303-7777237
www.jinnah.edu.pk

- smraza - 10-27-2004

www.ifac.org
www.iasb.org

SMR

- SalmanShehzad - 10-28-2004

Dear smraza and Pracs
Thanks allot for help of both of you and I really appreciate this effort of yours to clarify my thoughts and concepts about IAS. I have studied the website of IASB. And studied all about its history and formation etc etc. I do not know I have a feel that as they are British based standards that they want to implement internationally. Because in their members I was not able to find America. So I am confused once again. That do Americans also follow IAS the same one which is been issued by IASB or they follow FASB. Because if they are following FASB this means that IAS are not American standards but they are British. I know I might be bugging you people but I want to clear it in my mind because this is some thing which I asked from so many people(CA, ICMA,MBA etc etc) and I get different answers.
Kindly help me out
Looking forward to prompt reply from you people once again

Thanks and Regards

Salman Shehzad
Lecturer
Mohammad Ali Jinnah University,
Islamabad Campus.
Phone 92-51-111-87-87-87 Ext 115
Mobile 92-303-7777237
www.jinnah.edu.pk

- Pracs - 10-28-2004

Hi Salman,

Glad to be of any help. The Americans follow FASB and have no intentions in the near future to do forgoe that. However, we have seen both IASB and FASB stndards moving closer to each other, IASB moving more towards FASB. As you must know by now that FASB standards are more of rule based with less choices for implementation, in which case similar accounting procedures and principles will be used in a particular industry. IASB on the other hand has had more of a principle based standards in which case there are more than one ways of going about an accounting transaction/recoginiton. We have 'bench mark' and 'allowed alternative'. This I think will be done away with on coming years.

Coming back to classifying these (IASB - IFRS) as British would be giving too much of a credit to the Brits,. these are international and will be followed by most of the world apart from the US come 2005. EU, Middleast, Pakistan, Australia and highly influences standard setters in India, Malaysia, Singapore etc.

I'd be comfortable classifying them as 'International standards' influenced by British standards and nothing more.

"Allah does not change the state of people unless they change what is within themselves" Quran 1311

- smraza - 10-28-2004

Dear Salman,
The US based companies dont follow the IASs issued by IASB, but they follow the US GAAP (US Generally Accepted Accounting Priciples) which are equivalent to IAS but these are more detailed. These GAAP are developed by FASB, AICPA and SEC (US). The US GAAP are developed without getting any input from outside the US.
I hope this will clear your confusion.

follow the link below
http//cpaclass.com/gaap/gaap-us-01a.htm

SMR

- SalmanShehzad - 10-28-2004

Dear smraza and Pracs
Thanks allot for all the help provided by you both and I will be really honored if I could be of some help for u as well.
Now I am clear about all.

Thanks and Regards

Salman Shehzad
Lecturer
Mohammad Ali Jinnah University,
Islamabad Campus.
Phone 92-51-111-87-87-87 Ext 115
Mobile 92-303-7777237
www.jinnah.edu.pk

- smraza - 10-28-2004

you are welcome Salman.

SMR

- Pracs - 10-30-2004

That's what we are here for Salmaan, we can do away with the Thanks part.

I hope you can bring in other accounting issues on the forum, it will add to everybody's knowledge. Especially since you are a 'lecturer' on accounting, we'd all like to benefit from your wisdom.

Regards

"Allah does not change the state of people unless they change what is within themselves" Quran 1311

- smraza - 10-30-2004

<BLOCKQUOTE id=quote>quote<hr height=1 noshade id=quote>
Especially since you are a 'lecturer' on accounting,<hr height=1 noshade id=quote></BLOCKQUOTE id=quote>
Hey Salman,
since you are lecturer on a/c, i would like to ask a stupid question.
That the things like
.....always write 'account' with every head e.g. Purchased account etc.
.....Always write Assets on the left and Liab on the right side of balance sheet
.....Always write cash in hand first (the liquidity sequence) in the balance sheet.

are still being taught in I.Com or B.Com level, like our teachers used to tell us these golden rules of good accounting.

Please keep in mind, i m not referring these things as stupid, i m just calling my question stupid.

SMR

- Augustus - 10-30-2004

Just to add one thing that there is also a very good web site which contains notes on IASs' and this site is maintained by DD and URL is
www.iasplus.com

- SalmanShehzad - 10-31-2004

Dear smraza and Pracs
First of all I am sorry that this time I am replying a bit late as I was not here and secondly I will like to thanks u both for your tipes. And I will like to tell you people that I consider my self very lucky that I am student of Dr. Safdar Ali Butt (Phd in Corporate finance from Canada and author of 24 books in Kenya, Uk and Pakistan) and Professor Ammanullah Khan(HOD Mohammad Ali Jinnah University, Islamabad Campus and X- Dean Islamic International University and author of sevral books) so I know all these things which u mentioned. Secondly it is the first task for me to change many concepts of those students who come from I.com or B.com background.
And lastly I do consider my self lucky as per the enforcement of my these both teachers I am in habit of reading any Accounting and Finance material that comes across me and it just amazing and dam helpful for me to come across these issues.
But still I will like to thanks you both for your kind and yet prompt replies.

Thanks and Regards

Salman Shehzad
Lecturer
Mohammad Ali Jinnah University,
Islamabad Campus.
Phone 92-51-111-87-87-87 Ext 115
Mobile 92-303-7777237
www.jinnah.edu.pk