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OTHER MATTERS
ACCOUNTANCY
PROFESSION
In view of the close relevance of accountancy profession with the corporate sector, the
Commission is administering the accountancy profession in the country. The Commission is
represented on the Council of ICAP by its Chairman. During the period under review, the
Commission also worked in close co-ordination with ICAP, which is a self-regulatory body,
on all policy matters relating to accountancy.
REVISION OF THE CHARTERED ACCOUNTANTS OF PAKISTAN ORDINANCE,
1969
The Chartered Accountants of Pakistan Ordinance which regulates the profession of
Chartered Accountancy in Pakistan was promulgated in 1961. Since its promulgation, the
Ordinance was amended only once in 1983. With the developments since 1983, amendments in
the Ordinance became necessary. The final draft of the new ICAP Ordinance, sent by the
ICAP to the Commission, is under examination and shall be submitted to the Government
shortly for enactment and promulgation.
AMENDMENTS IN CHARTERED ACCOUNTANTS BYE-LAWS 1983
Amendments in Bye-laws 8, 97, 106, 109, 118, 124 & 126 of the Chartered Accountants
Bye-laws, 1983 were approved by the Commission which were notified by the ICAP vide
Notification No. SRO.2 (KE) 99, dated 10th February, 1999 and No. 61(KE)/99- dated 17th
May, 1999 Amendments in Bye-law 91, of the Chartered Accountants bye-laws, 1983 were also
approved by the Commission on 22nd May, 2000 for notification by the ICAP.
REFERENCES MADE TO ICAP
During the period under review, the Commission made a number of references to ICAP on
different accountancy issues. A reference was made regarding non-compliance by companies
and auditors of the requirements of IAS-25 and Technical Release 23 was issued by the ICAP
regarding evaluation of investment in the shares of listed companies. The Institute
finally issued a circular in December, 1999 advising its members to strictly abide by the
requirements of IAS-25 and TR-23
APPLICABILITY OF IAS 27 AND SCHEDULE IV TO THE COMPANIES ORDINANCE, 1984
TO NON-LISTED SUBSIDIARIES
ICAP pointed out to the Commission certain practical difficulties in adoption and
application of IAS No. 27 relating to consolidation of financial statements. On the
recommendations of a Committee constituted by the Commission which consisted of
representatives of some Chartered Accountants firms and officers of the Commission, the
Commission decided to issue an order under section 246 of the Companies Ordinance, 1984.
According to the order, financial statements of non-listed subsidiaries i.e., private and
non-listed public companies which are subsidiaries of listed holding companies should
prepare their financial statements under the same disclosure requirements which are
applicable to the listed companies.
INTERNATIONAL RELATIONS
The Commission has been keen to interact with its counterpart regulatory bodies in
other countries. During the year under review, Chairman and Commissioners as well as other
officers of the Commission participated in important conferences and meetings of the
Committees of International Organization of Securities Commissions (IOSCO). Mr. Khalid A.
Mirza, Chairman, participated in the 25th Annual Conference of IOSCO held at Sydney from
13th to 19th May 2000. Mr. Tariq Iqbal Khan, Commissioner and Mr. M. Ayub Qureshi,
Director (Securities) participated in IOSCO Emerging Markets Committee meetings held at
New Delhi, India from 22nd to 25th November, 1999. Mr. Atta Mohammad Khan, Registrar of
Companies and Mr. Ashfaq Ahmad Khan, Director (Enforcement) participated in an enforcement
institute hosted by Financial Supervisory Services, at Seoul which was sponsored by Asia
Pacific Regional Committee (APRC) of IOSCO. The Commission is hosting a meeting of APRC of
IOSCO at Bhurban from 10th to 11th October 2000. This is the first time that Pakistan
would be hosting any IOSCO event.
COMPLIANCE WITH Y2K
The Commission took a number of steps to ensure compliance of all listed companies with
Y2K. The Commission issued Circulars to all the listed companies inviting their attention
towards the Y2K compliance and advising them to modify their automated systems to render
them Year 2000 compliant. Another Circular was issued to the listed companies and stock
exchanges emphasizing upon them the need for making their systems Y2K compliance. Listed
companies were also required to report the status of Y2K compliance in their annual
accounts. Due to measures taken by the Commission as well as by the Pakistan Computer
Bureau, listed companies, exchanges and the accounting professionals did not face any
problem in terms of Y2K and no incident was reported.
