02-29-2008, 02:48 AM
Dear,
The circumstances which you state show it as a picture drawn by your professional judgment. This could be entirely correct. I don't argue. I also don't ask any entity's name.
If anything meets the criteria of IFRSs as such it should be adopted and followed.
I only wished to point out that local regulations and laws always override the IFRSs and other such pronouncements. You may or may not be knowing this fact. Your statement in last lines shows that you are in doubt over it.
Your belief that SIC 12 applies irrespective of whatever law requires may not be correct. This again needs to be studied in specific circumstances. If there is no explicit requirement of law then you are right. But if any local law overrides SIC 12 due to whatever reason, local has to be followed.
Now these statements of mine as well could be deemed as vague unless we analyse any specific situation as I told you about mutual funds in respect of which Asset management companies have been now legally prohibited to do consolidation.
Therefore, unless, we are specific to any field/sector, we cannot conclude what we have to do about it.
Please remember, in Pakistan only those IFRSs are to be followed which have been adopted by ICAP, and notified by SECP. Any other IFRS however it is justifiable is not mandatory. I know IAS 27 is notified. But there could be some entities for which it may not be notified. Just as IAS 39 is notified but banks are not required to adopt and follow it.
Hope things may be understood.
If we know some real example we can discuss this situation further.
Regards,
Kamran.
The circumstances which you state show it as a picture drawn by your professional judgment. This could be entirely correct. I don't argue. I also don't ask any entity's name.
If anything meets the criteria of IFRSs as such it should be adopted and followed.
I only wished to point out that local regulations and laws always override the IFRSs and other such pronouncements. You may or may not be knowing this fact. Your statement in last lines shows that you are in doubt over it.
Your belief that SIC 12 applies irrespective of whatever law requires may not be correct. This again needs to be studied in specific circumstances. If there is no explicit requirement of law then you are right. But if any local law overrides SIC 12 due to whatever reason, local has to be followed.
Now these statements of mine as well could be deemed as vague unless we analyse any specific situation as I told you about mutual funds in respect of which Asset management companies have been now legally prohibited to do consolidation.
Therefore, unless, we are specific to any field/sector, we cannot conclude what we have to do about it.
Please remember, in Pakistan only those IFRSs are to be followed which have been adopted by ICAP, and notified by SECP. Any other IFRS however it is justifiable is not mandatory. I know IAS 27 is notified. But there could be some entities for which it may not be notified. Just as IAS 39 is notified but banks are not required to adopt and follow it.
Hope things may be understood.
If we know some real example we can discuss this situation further.
Regards,
Kamran.
