This is the twenty seventh compilation of opinions issued by the Institute’s Accounting Standards Board (the Board) and the Auditing Standards & Ethics Committee (the Committee) on the enquiries raised by members, entities and regulators during the period from July 2021 to December 2022.
The selected opinions are issued for the general guidance of the members of the Institute and these are based on the specific fact patterns shared by the enquirers. In this document, the accounting opinions represent the opinions of the Board and opinions related to auditing and ethical matters represent the opinions of the Committee. These are not the official opinions of the Council of the Institute.
The technical opinions are based on the financial reporting, auditing and ethics frameworks applicable in Pakistan, on the date the Board or the Committee finalized a particular opinion. Since an opinion is arrived at on the basis of the facts and circumstances of each individual query provided by the enquirer, it may change if the facts and the circumstances change. An opinion may also change due to subsequent developments in law, pronouncements made by the Institute and other relevant changes, including any change in the financial reporting, auditing or ethics framework. The selected opinions are not a compendium of legal advice. In every case members are advised to make their own decisions in the light of facts and circumstances of the issue, and in consideration of the relevant applicable laws and framework. The Institute, the Board and the Committee will have no liability in connection with the selected opinions.
The Institute also uploads the latest opinions of the Board or Committee on its website, as issued, with the objective to facilitate members and to provide timely guidance. The latest selected opinions issued after December 2022 can be accessed at: www.icap.net.pk/latest-selectedopinions.
ACCOUNTING
1.1 Application of transitional provisions of accounting standard for NPO
1.2 Determination of fair value at the measurement date under IFRS 13, Fair Value Measurement
1.5 Provisioning requirements for NBFCs under IFRS 9 and the NBFC Regulations 2008
1.6 Accounting of common control transactions
1.7 Accounting treatment of preference shares
1.8 Transition from IFRS for SMEs to IFRS Standards
AUDITING
2.1 Format of accounts and audit report in case of liquidation
2.2 Rotation of a sole proprietor under the corporate governance regulations
2.3 Change in classification of company
2.4 Appointment of auditor (ICAP Code of Ethics and Directive 4.23)
2.6 Group audit as per ISA 600
2.7 Lack of consent from audit client for sharing audit working paper files