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    FR Assignment

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    AleAhmed
    Accounting standards provide clear and consistent rules for recording financial transactions and reporting assets, liabilities, revenues, and expenses. They are important for ensuring reliable and accurate financial information for stakeholders like banks, investors, and regulators. In Pakistan, accounting standards are set by the Securities and Exchange Commission of Pakistan and the Institute of Chartered Accountants of Pakistan, and most companies follow International Financial Reporting Standards, though some standards have not been fully adopted. Compliance with accounting standards is important for public trust in financial reporting.

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    FR Assignment

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    AleAhmed
    35 views4 pages
    Accounting standards provide clear and consistent rules for recording financial transactions and reporting assets, liabilities, revenues, and expenses. They are important for ensuring reliable and accurate financial information for stakeholders like banks, investors, and regulators. In Pakistan, accounting standards are set by the Securities and Exchange Commission of Pakistan and the Institute of Chartered Accountants of Pakistan, and most companies follow International Financial Reporting Standards, though some standards have not been fully adopted. Compliance with accounting standards is important for public trust in financial reporting.

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    Accounting standards provide clear and consistent rules for recording financial transactions and reporting assets, liabilities, revenues, and expenses. They are important for ensuring reliable and accurate financial information for stakeholders like banks, investors, and regulators. In Pakistan, accounting standards are set by the Securities and Exchange Commission of Pakistan and the Institute of Chartered Accountants of Pakistan, and most companies follow International Financial Reporting Standards, though some standards have not been fully adopted. Compliance with accounting standards is important for public trust in financial reporting.

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    Download as docx, pdf, or txt
    35 views4 pages

    FR Assignment

    Uploaded by

    AleAhmed
    Accounting standards provide clear and consistent rules for recording financial transactions and reporting assets, liabilities, revenues, and expenses. They are important for ensuring reliable and accurate financial information for stakeholders like banks, investors, and regulators. In Pakistan, accounting standards are set by the Securities and Exchange Commission of Pakistan and the Institute of Chartered Accountants of Pakistan, and most companies follow International Financial Reporting Standards, though some standards have not been fully adopted. Compliance with accounting standards is important for public trust in financial reporting.

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    1

    Financial Reporting
    (Assignment 1)

    Name: Ali Ahmed Hulio

    Roll No: 1947125

    Program: BSAF-6

    Date: 27/10/2022
    2

    Accounting Standards and Their Importance

    As the foundation of competent financial accounting policies and


    practices, accounting standards are a clearly defined set of accounting
    principles, regulations, and processes.
    Accounting standards are a set of rules and procedures developed to
    ensure that companies and other entities do bookkeeping and other accounting
    tasks in a consistent manner across time.
    All of an entity's assets, liabilities, revenues, expenses, and shareholders'
    equity are considered in light of the applicable accounting rules.
    Accounting standards are used by banks, investors, and government
    organizations to ensure that the data they are relying on is reliable and accurate.

     Globally consistent accounting standards strengthen the credibility of


    financial reporting. They provide the standards for how and when
    economic events are to be recorded, quantified, and reported.
    Accounting standards are used by the company's external stakeholders
    (such as banks, investors, and regulatory authorities) to assure the
    production of reliable information. Financial reporting measures and
    transparency were both developed and guaranteed by these technical
    announcements.

     Public and private businesses alike in the US adhere to GAAP, or


    generally accepted accounting standards. International Financial
    Reporting Standards (IFRS) are used by the vast majority of countries.
    There are norms that all international organizations must adhere to.
    Financial statements are prepared in accordance with international
    accounting standards, which are created and interpreted by the
    International Accounting Standards Board (IASB).
    3

    Evolution of Accounting Standards in Pakistan and its Standard


    Setting Bodies and Regulatory Bodies

    The Securities and Exchange Commission of Pakistan notifies firms in


    Pakistan of the appropriate accounting standards in accordance with the
    Pakistani Companies Ordinance (1984).
    The great majority of IFRSs have been adopted for obligatory
    implementation by public corporations, banks, and other financial institutions,
    as well as Economically Significant Entities (ESEs) that are not public firms, in
    Pakistan.
    In most circumstances, IFRSs are implemented in accordance with the
    International Accounting Standards Board's standards (IASB)

     The Institute of Chartered Accountants of Pakistan (ICAP) is


    responsible for regulating the chartered accountant profession in
    Pakistan. Among its many responsibilities is the creation and
    publication of auditing standards and the suggestion of accounting
    standards for notice, or official adoption, in accordance with SECP
    law. The Islamic Accounting and Finance Standards (IFAS) are being
    developed by ICAP.

     Accounting standards can be issued by the SECP for any company,


    not only those on public exchanges.

     Accounting and reporting standards for banks and specific types of


    financial institutions are set by the SBP, which acts as the banking
    regulator.
    4

     The International Financial Reporting Standards (IFRS) are widely


    accepted in Pakistan, thus they must be used by publicly listed
    companies, banks, utilities, and other large businesses. Companies
    who claim to adhere to IFRS Standards as established in Pakistan have
    omitted certain critical Standards from their practices. Further, IFRS 1
    Initial Adoption has not yet been adopted in Pakistan.

     To be listed on a public exchange in Pakistan, an overseas company's


    financial statements must comply with the International Financial
    Reporting Standards (IFRS) in use in Pakistan.

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