The Securities Exchange Commission of Pakistan (the Commission) has issued Circular No. 23 of 2017 (dated October 4, 2017), which states:
“In continuation of circular No. 17 of 2017 dated July 20, 2017 issued-by the Securities and Exchange Commission of Pakistan, the companies whose financial year closes on or before December 31, 2017 shall prepare their financial statements in accordance with the provisions of the repealed Companies Ordinance, 1984 owing to the difficulties faced by them as well as their auditors to comply with the provisions of the Companies Act, 2017 (Act). However, the companies whose financial year closes after December 31, 2017 shall prepare financial statements in accordance with the provisions of the Act.”
The Institute has obtained clarification from the Commission, as per which the preparation of financial statements in accordance with the repealed Companies Ordinance 1984, covers:
- Annual financial statements of companies whose financial year closes on or before December 31, 2017; and
- Interim financial statements of companies for the periods ending on or before December 31, 2017.
Members are advised to take note of the above.