Volume 11 (XI) 2005-06

The opinions contained in this compilation are of the competent Committees constituted by the Council of the Institute and are of operational nature and not on issues on which relevant laws and rules are not explicit. These “Selected Opinions” are not a compendium of “legal advice”.

The opinions issued by the Committees to the members’ queries are dated. Since an opinion is arrived at on the basis of the facts and circumstances of each individual query, 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. The Institute and the Committees will have no liability in connection with such opinion.

In every case the members have to take their own decisions in the light of facts and circumstances in accordance with related laws and rules etc., applicable to the issue under decision at that point in time


1.1    Accrued network liabilities to be financed by long – term loans.
1.2    Accounting treatment of standing crops.
1.3    Companies Profits (Workers’ Participation) Act, 1968 on Capital Gains
1.4    Change in Basis for Charging Depreciation
1.5    Clarification on Contradiction between IAS 22 and IAS – 36
1.6    Deferred Costs and Restricted Use of Cash and Cash Equivalents
1.7    Capitalization of exchange losses
1.8    Early adoption of International Financial Reporting Standards (IFRS)
1.9    Grant of Leasehold Land by the Government and Leasing out of such Land to Others
1.10    IAS – 8, Accounting Policies, Changes in Accounting Estimates and Errors
1.11    Initial Public Offer (IPO) Expenses – Treatment in Financial Statements
1.12    Inconsistent treatment of head office expenses by branches of foreign banks
1.13    Presentation of Investments in Associates in Accordance with the Revised IAS
1.14    Residual Value of Assets – IAS 16
1.15    Revaluation of Fixed Assets and Treatment of Pagree
1.16    Section 226 of the Companies Ordinance, 1984 ‘Securities and Deposits’
1.17    The Continuous Funding Systems
1.18    Treatment of Preference Shares / Redeemable / ConvertibleAuditing


2.1    Stock taking Observance without obtaining prior clearance of previous auditors