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ICAP issues circular regarding review of SAPs and SSAPs

The Institute of Chartered Accountants of Pakistan (ICAP) has issued the following circular regarding review of SAPs and SSAPs issued by the institute:

Circular No.02/2004 March 15, 2004
ALL MEMBERS OF THE INSTITUTE

Dear Member

REVIEW OF STATEMENTS OF STANDARD AUDITING PRACTICE (SAPs) AND STATEMENT OF STANDARD ACCOUNTING PRACTICE (SSAP)

The Technical Advisory Committees and the Professional Standards & Technical Advisory Committee of the Institute recently carried out a thorough review of Statements of Standard Auditing Practice (SAPs) and Statement of Standard Accounting Practice (SSAP) with a view to bring simplicity in the pronouncements of the Institute.

It was noted that SAPs 2 and 4 already stand withdrawn, while only SSAP-1 is in effect till the date of review.

The Committees also came to the conclusion that the remaining three SAPs should be withdrawn immediately and simultaneously the guidance provided in the said statements be reviewed and issued as ATRs.

As the matter of accounting for stores and spares is adequately dealt with by IAS 2 (Inventories) and IAS 16 (Property, Plant and Equipment) and compliance with these IAS is, in any case, mandatory in the preparation of financial statements, therefore SSAP 1 no longer served the purpose for which it was originally issued and hence should be withdrawn

These recommendations were considered by the Council in its 162nd meeting held on January 23 & 24, 2004 which, while approving the withdrawal of SSAP 1, has decided that the proposed ATRs should be exposed to the general membership for their comments. Accordingly, following draft Auditing Technical Releases are enclosed.

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