Financial Risk Manager

Ways of Financial and Risk Management

SECP - Relaxation in accounting treatment for equity securties
Saturday, February 14, 2009

The SECP through SRO 150 (I) 2009 dated February 13, 2009, has granted relaxation in the accounting treatment for equity securities held by the companies under the head “Available for Sale” as required under International Accounting Standard ‘Financial Instrument: Recognition and Measurement (IAS 39). The relaxation is;

The impairment loss if any recognized as on 31-12-2008 due to valuatin of listed equity investment held as "Available for sale" to quoted market prices of 31-12-2008 may be shown under the EQUITY.
The amount taken to equity including any adjustment / effect for price movements during the quarter of calender year 2009 shall be taken to Profit and Loss account on quarterly basis during the calender ending on 31-12-2009.
The amount taken to equity shall be treated as a charge to profit and loss account for the purpose of distribution as dividend.
The above dispensation shall be available to all companies and mutual funds.
All companies and mutual funds opting for the above treatment shall disclose prominently n the face of balance sheet, profit and loss accounta and director's reports

Labels: accounting

posted @ 10:08 AM,

1 Comments:

At February 14, 2009 at 2:54 PM, Tauqeer said...: The step is better to get rid off the problem for the companies whose were going to be qualified or to be.