REVISION IN AUDITORS’ REVIEW REPORT FORMAT ON INTERIM FINANCIAL INFORMATION AND THE STATEMENT OF COMPLIANCE

Further to Circular 6/2009 and Circular 9/2009 dated June 1, 2009 and August 11, 2009 respectively, the  Professional Standards and Technical Advisory Committee of the Institute in its 62nd meeting held on March 25, 2010 approved to include reference to the ‘notes to the accounts’ as ISRE 2410 paragraph 43c also requires this to be stated. Such reference is also in accordance with the international practice. Following is the first paragraph of the report showing the addition as underlined and deletion as struck through:

“We have reviewed the accompanying condensed interim balance sheet of …………….. as at ………….. and the related condensed interim profit and loss account, condensed interim cash flow statement, and condensed interim statement of changes in equity and notes to the accounts for the six-month period then ended (here-in-after referred to as the “interim financial information”).”

To achieve consistency the Committee also agreed to recommend inclusion of the following Statement of Compliance in the interim financial statements of listed companies:

“This condensed interim financial report of the company for the six months period ended —————– has been prepared in accordance with the requirements of the International Accounting Standard 34 – Interim Financial Reporting and provisions of and directives issued under the Companies Ordinance, 1984. In case where requirements differ, the provisions of or directives issued under the Companies Ordinance, 1984 have been followed.”

Further, it is also recommended by the Committee that in the notes to the interim financial information the following clarification should also be included:

The accounting policies and the methods of computation adopted in the preparation of this condensed interim financial report are the same as those applied in the preparation of the financial statements for the year ended ————– (*except for the adoption of a new accounting policy as referred to in note xx ).

* Delete as appropriate.

Members are advised to take note of the same.