Circular 2012/1

ALL MEMBERS OF THE INSTITUTE

Dear Member

The Council of the Institute in its 230th meeting held on December 17, 2011, has accepted the Professional Standards and Technical Advisory Committee (PS&TAC) recommendations to revise/reformat for better understanding or withdraw certain Accounting Technical Releases (TRs) and Auditing Technical Releases (ATR) as per details given below: –

Review of TRs

TR-5    IASB Standards – Council’s Statement on Applicability

No change

TR-6    Fixed Assets Inventory and Records

The requirement of carrying out physical verification of fixed assets every five years mentioned in paragraph 2.2 of the TR has been removed, as this is not a mandatory requirement under any law.

TR-8    Clarification regarding basis of calculation of Workers’ Profits Participation Fund

No change

TR-11    Depreciation on Idle Fixed Assets

Withdrawn as the issue is fully covered in paragraph 55 of IAS 16 under the heading Depreciable Amount and Depreciation Period

TR-15    Bonus Shares – Accounting Treatment

Withdrawn as the issue is covered in paragraph 27, 28 and 64 of IAS 33

TR-21    Date of Commencement of Commercial Production

Withdrawn as the issue is covered in paragraph 20 and 21 of IAS 16

TR-22    Book Value Per Share

No change

TR-24    Exchange Risk Fee – Accounting Treatment

Withdrawn, and will now be placed in the Selected Opinions.

TR-27    IAS-12, Accounting for Taxes on Income

Para 5 of the TR, on deferred tax relating to leasing companies, is now redundant therefore has been deleted.

TR-29    Carry-over Transactions (COT)

No change

TR 30 – Final Tax Accounting

Withdrawn, and will now be placed in the Selected Opinions

TR 31 – Annuity Method of Depreciation

Withdrawn, and will now be placed in the Selected Opinions

Review of ATRs

ATR 8 – Preparation of accounts from incomplete records and report thereon as auditor (Reformatted 2002)

Withdrawn as paragraph 290.165 to 290.169 of the Code of Ethics for Chartered Accountants (Revised in May 2008) has addressed this issue

ATR 11- Appointment of auditors-I (Reformatted 2002)

Withdrawn as paragraph 210 of the Code of Ethics for Chartered Accountants (Revised in May 2008) and section 252- 253 of the Companies Ordinance 1984 has addressed this issue

ATR-13, ATR-14 and ATR-16

No change in the above three

ATR 17 – Auditors’ Report to the Trustees/Board of Governors/Management Committee (Revised 2004)

ATR 18 – Bank Reports for Audit Purposes

ATR 19 – Identification of Audit Engagement Partner In The Auditors’ Report On Financial Statements

ATR 20 – Auditors’ Reporting Responsibilities in respect of non-compliance with Laws or Regulations

These have been revised with editorial changes only.

Copies of the revised / reformatted TRs and ATRs along with Sectional Indexes are enclosed.