Daily Times

KARACHI: Streamlining the accounting standards aligning with the best global practices will ensure consistent disclosure and transparency in financial reporting in Pakistan.

Transparency and good governance aids in boosting investor confidence and this is the catalyst for attracting foreign and local investors; a much needed impetus for strengthening the economy.

The Accounting Standards Board (ASB) has been established to reinforce the legitimacy of the standard setting process, to increase public confidence with increased transparency and wider participation of stakeholders.

ASB will play a key role in the advocacy of International Public Sector Accounting Standards for public sector entities for better governance, greater financial accountability, and transparency.

Farrukh Rehman, President ASB and Council member of the Institute of Chartered Accountants Pakistan said ASB aims to adopt International Financial Reporting Standards (IFRS) for small and medium enterprises (SMEs), besides accounting standards for small size entities and not for-profit entities in Pakistan.

The composition of ASB includes representation from the Securities and Exchange Commission of Pakistan, State Bank of Pakistan, Pakistan Stock Exchange, Higher Education Commission of Pakistan and Auditor General of Pakistan besides members from industry and practice of the ICAP.

The differences between accounting standards and Companies Ordinance, 1984 is a matter to be revisited for the applicability of accounting standards.

ASB will be developing a paper on electronic reporting of financial statements.

ASB is engaging all stakeholders to address gaps in the local accounting framework to align with them with the best international practices – giving due consideration to local ground realties to ensure a level playing field for all.

ICAP is committed to serve public interest and has taken various measures to promote the best international practices.

The scope of ASB is to contribute towards the adoption, development, implementation of high quality accounting standards, issue guidance and deal with all related matters.

Some of the other initial projects are deliberations on recommending adoption of IFRS 9-Financial Instruments, IFRS 15 Revenue from Contracts with Customers and IFRS 16-Leases and IFAS 4 Diminishing Musharaka.

Everyone desires to see Pakistan as an economically stable and prosperous country in the dynamic and ever changing global arena – which is shadowed with uncertainty and geo-political challenges.