Accountancy Forum
  • Accountancy
  • Forum Home
  • Members
  • Team
  • Help
  • Search
  • Register
  • Login
  • Home
  • Members
  • Help
  • Search
Accountancy Forum The Profession Accounting and Audit v
« Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 … 28 Next »
Pre-operating expense

 
  • 0 Vote(s) - 0 Average
Pre-operating expense
kamranACA
Offline

Posting Freak

Posts: 2,351
Threads: 42
Joined: Feb 2007
Reputation: 0
#8
08-30-2007, 04:36 PM
Dear Mr. Mahmood,

It's nice to see you at the forum after a long time.

ICAP has yesterday issues a circular which I am pasting hereunder

QUOTE

Circular No. 05/2007 August 29, 2007

ALL MEMBERS OF THE INSTITUTE

NOTIFICATION OF ACCOUNTING AND FINANCIAL REPORTING STANDARDS FOR MEDIUM-SIZED ENTITIES (MSEs) AND SMALL-SIZED ENTITIES (SSEs) AND REVISION OF THE FIFTH SCHEDULE TO THE COMPANIES ORDINANCE, 1984

Dear Member

On the recommendation of the Institute of Chartered Accountants of Pakistan (ICAP) the Securities and Exchange Commission of Pakistan (SECP) vide SRO No. 860(I)/2007 dated August 21, 2007 has notified the Accounting and Financial Reporting Standards for MSEs and SSEs issued by ICAP under Section 234(3) of the Companies Ordinance, 1984.

As the above notification also necessitated appropriate amendments to the Fifth Schedule to the Companies Ordinance, 1984, therefore on the recommendation of the ICAP, the SECP vide SRO 859(I)/2007 dated August 21, 2007 has also revised the said Fifth Schedule.

The above documents along with Accounting and Financial Reporting Standards for MSEs and SSEs may be downloaded from ICAP website using the following link

http//www.icap.org.pk/news/notificationsecp.htm

Members are advised to note the above.

Thanking you

Yours truly

Shahid Hussain

Director Technical Services


UNQUOTE

The standard for medium size entities is basically an epitome of the IFRSs in a broad spectrum.

As per my info AFF has currently adopted the practice to draw up the profit and loss account of all such entities for charging up the pre-incorporation expenses and advises the clients not to take up any amount to deferred cost.

I have yet to study the fifth schedule (revised) so I cannot precisely comment on the issue, but I personally feel that no pre-incorporation expense should now be deferred and the companies should draw up profit and loss account even if these are not in operation so far. Any loss will be taken to the balance sheet.

I will come back to you soon after having a look on the pronouncements.

Best regards,

Kamran.
« Next Oldest | Next Newest »

Users browsing this thread: 1 Guest(s)



Messages In This Thread
Pre-operating expense - by outfield73 - 03-06-2007, 12:45 PM
[No subject] - by kamranACA - 03-06-2007, 05:57 PM
[No subject] - by kamranACA - 03-06-2007, 06:01 PM
[No subject] - by kamranACA - 03-06-2007, 06:07 PM
[No subject] - by msc286 - 03-13-2007, 03:30 PM
[No subject] - by kamranACA - 03-17-2007, 05:08 PM
[No subject] - by msc286 - 08-29-2007, 07:36 PM
[No subject] - by kamranACA - 08-30-2007, 04:36 PM
[No subject] - by kamranACA - 08-31-2007, 04:38 PM
[No subject] - by msc286 - 09-07-2007, 06:25 PM
[No subject] - by harisahmed - 01-29-2009, 05:31 PM
[No subject] - by kamranACA - 01-29-2009, 07:59 PM
[No subject] - by mahek - 02-22-2009, 07:27 PM
[No subject] - by Star - 02-23-2009, 03:46 PM
[No subject] - by kamranACA - 02-23-2009, 05:50 PM
[No subject] - by Ali78 - 10-06-2010, 04:11 PM
[No subject] - by kamranACA - 10-07-2010, 12:24 AM

  • View a Printable Version
  • Subscribe to this thread
Forum Jump:

© 2002-2024 Accountancy. Copyrights of all content on this web site are owned by Accountancy except where indicated in source or copyright statements. Accountancy must be contacted for permission to copy or redistribute any material published on this website.

Linear Mode
Threaded Mode