ACCA calls for improved dialogue between regulators and businesses in 2010

ACCA calls for improved dialogue between regulators and businesses in 2010

Blind eye to communication and ethics exposes weaknesses around non-executive directorship, consumer protection and risk management

 

Regulators and businesses need to be able to engage in a common sense business dialogue to ensure that global financial regulation heads in the right direction in 2010, says ACCA (the Association of Chartered Certified Accountants).

 

In its new policy paper called The Future of Financial Regulation - An Update, ACCA calls for changes, including better ethics training for all directors including non executive directors, the implementation of a US style Consumer Financial Protection Agency in Europe and the urgent need for company boards to upgrade their risk functions. 

 

The paper argues that much remains to be done to ensure Non-Executive Directors exercise meaningful and effective oversight of actions of executives in large complex banks. They particularly need help in obtaining assurance that agreed board policies have actually been implemented by management.

 

The discussion paper also discusses the principles needed for solid financial regulation in the future. It examines:

·                    the purpose and structure of regulation

·                    competition

·                    standards of conduct and competence

·                    governance

·                    accountability and incentives

·                    risk management and capital funding.

 

John Davies, ACCA's head of business law and co-author of the report, says: "It is still too early to give a definitive view of the regulatory landscape as proposals are still being consulted on at national and global levels. The debate will go on way into 2010. But some of the key points made by ACCA have been followed, notably on the welcome maintenance of national supervision as the bedrock of regulation. Speculation earlier this year about the introduction of some sort of 'super-regulator' has remained, mercifully, just that. The connection between regulator and regulated must be maintained, which is why we also have concerns about the proposed pan-EU regulatory architecture - co-ordination and best practice sharing is good, but remoteness is not."

 

Ian Welch, co-author of report adds: "We are concerned at a continued lack of action on the so-called 'too big to fail' institutions - the existence of which is an anathema to good regulation. Extra capital requirements and more intensive supervision will go so far, but it is disappointing that the re-introduction of a Glass-Steagall type division of investment and retail banking activities are not being taken a bit more seriously. Competition is the key to effective regulation and governments must put the promotion of competition at the heart of their approach."

 

Press Release: English really counts! - ACCA Pakistan launches ICFE

Press Release: English really counts! – ACCA Pakistan launches ICFE

 ACCA Pakistan launched Cambridge ICFE (International Certificate in Financial English) in Karachi on Saturday, 19 December 2009. The launch was celebrated with a Talk show – "Harnessing Finance Talent of Pakistan" featuring Ayesha Tammy Haq as moderator and opinions from industry leaders, including Ms Rahila Narejo, Sr HR Consultant, Mr Arif Masud Mirza, Head of ACCA Pakistan, Mr Junaid Iqbal, CEO BMA Financials and Mr Raza Ali Shah, Entrepreneur and stock trader.

 

The discussion commenced with an overview of the financial sector of Pakistan and integration of financial planning and evaluation in the heart of every business activity. Moving on to how the role of finance professional has changed and the qualities required in finance professionals.

 

Deliberating on solutions to bridge the gap between academia and industry through government policy interventions, private sector educational institutions, professional bodies and HR experts; the expert panel appreciated the importance of communication skills in general and English language proficiency as a universal language of business in particular, further appreciating the proactive role of ACCA in responding to the pulse of industry in launching a financial English Qualification- Cambridge ICFE.

 

In the following segment of Launch event, Thespianz Theater, delivered a comical play, "Ooh! My Proposals" adapted from Anton Chekov's play 'Marriage Proposals' The play portrayed the importance of English as a Global Language. Humor was added to the subject to keep the interest of the viewers alive, by addition of regional characters and different accents. The play concluded on a high note leaving everyone in a happy mood with a message that "English really counts".

 --

Husnain Rasheed

Press Release: ACCA Pakistan holds New members ceremony 2009

22 December 2009

 ACCA Pakistan holds New members ceremony 2009

 

ACCA Pakistan organised New members ceremony 2009 at a local hotel in Karachi today. Mr Raza Haroon, Minister for Information Technology, Government of Sindh was the chief guest

 

ACCA Membership title is recognition for members who have proven their in-depth academic knowledge through rigorous examinations and have completed three years of relevant professional experience along with unique professionalism and ethics module.

 

The evening commenced with welcome remarks by Mr Arif Masud Mirza, Head of ACCA Pakistan who congratulated the Members on their achievement and lauded their contribution in reinforcing ACCA's brand image by living ACCA values of accountability, innovation, integrity, opportunity and diversity. He further said that ACCA champions global standards of professionalism and ethics and our reputation for integrity and accountability provides a firm foundation for the positive standing of our Members.

 

The Chief Guest lauded ACCA Pakistan's initiatives and commendable progression in the field of Accounting and Finance. He expressed profound appreciation to the members for their professionalism and later presented certificates to them.

 

The keynote speaker, Imtiaz Jaleel, Head of Internal Audit, Unilever Pakistan Limited in his address, congratulated the new members on their remarkable achievement and appreciated ACCA's outstanding contribution in cultivating human talent in field of Accountancy and Finance. Mr.Kashif Khan, Chief Internal Auditor , National Clearing Company of Pakistan Limited a speech on behalf of all ACCA members.

 

The ceremony was attended by the ACCA Approved Employers including PTCL, Office of the Auditor General of Pakistan, Telenor Pakistan. The event aimed at giving the new Members and the employers an opportunity to leverage relationships with in the ACCA community.

Husnain Rasheed

Press Release: ICFE - when English really counts

17 December 2009

 Press Release: ICFE- when English really counts

 ACCA Pakistan is celebrating the Launch of Cambridge ICFE (International Certificate in Financial English) with a unique duplet of Talk show and Comedy theatrical performance on 19 December 2009 at The Aga Khan Auditorium, Karachi at 4.00pm.

 Cambridge ICFE is a language qualification assessing English language skills in the context of finance and accounting. It develops and validates first-rate English language skills in four areas of reading, writing, speaking and listening.

 The Talk Show, moderated by Ayesha Tammy Haq, will feature expert opinions from industry leaders, including Mr Syed Masoud Ali Naqvi, Senior Partner, KPMG Taseer Hadi and Company, Ms Rahila Narejo, Sr HR Consultant, Mr Arif Masud Mirza, Head of ACCA Pakistan  and Mr Junaid Iqbal, CEO BMA Financials, on 'harnessing Finance Talent of Pakistan'.

 This informative discussion will be followed by a comical theatrical performance "Ooh! My Proposals" adapted from Anton Chekov's play 'Marriage Proposals' and directed by Mr Faisal Malik, Director, Thespianz Theatre.

 -ends-

 Notes to Editors

1.   ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 362,000 students and 131,500 members in 170 countries worldwide.

2. ACCA has worked with governments, national organisations and development agencies in emerging economies- for over 20 years- promoting the accounting profession, to create value for the communities, businesses and individuals it serves.
3. ACCA believes that globalisation of business means that one set of reporting standards is essential. We favour the principles-based IFRS.
4. ACCA understands the real issues facing small businesses as 63,000 of our members work in SMEs or small partnerships worldwide.

 Husnain Rasheed

ACCA Employer Conference "Accountants for Business"

Event:	ACCA Employer Conference "Accountants for Business"
	The importance for organisations managing their human capital effectively has never been greater and organisations are increasingly recognising that the people they employ are their most important asset. ACCA's Managing Human Capital programme, featuring its conference series, global research programme and employer products and services, explores the issues organisations face in recruiting, developing and retaining finance professionals, and provides practical solutions to address these. Our 2009 - 2010 conference theme is Accountants for Business. It will be held on 15 December 2009 aimed to emphasise a new, value adding agenda for accountants in whatever role they occupy. The theme examines the role of accountants as promoters of sound business practices, champions of sustainable development and identifiers of value drivers that all lead to high performing organisations. Registration Deadline: 28 November 2009 Registration form click here For further details click here
Date:	15 Dec 2009
Venue:
	Karachi
Cost:	by invitation only
CPD Units*:	7.5
*CPD Units are only verifiable if the event attended provides skills and/or knowledge relevant to your job or career aspirations.
For further details please contact Habiba Zaidi on +92 (0)21 111 222 275 or e-mail habiba.zaidi@pk.accaglobal.com

Sehrish from Pakistan wins ACCA Scholarship

Sehrish from Pakistan wins ACCA Scholarship

Sehrish Hussain Khan, ACCA student from Pakistan, is one of this year’s five winning ACCA students to be awarded a scholarship. The other winners are from China, Kenya, and England. The Simpson Scholarship exists to reward talented ACCA students who have already proven their merit in the ACCA exams. The scholarship will fund the exam and registration fees for a period of five years or until they become members. Sehrish, who won the scholarship based on her essay,”How the award of a Scholarship will help me to realise my full potential”, said: Since grade five I have always aspired to become a professional accountant. Moving ahead in life I learned that ACCA is the best professional qualification I can gain in accountancy.” The scholarship was made possible by Ms Muriel Simpson, a Fellow of ACCA, who in her Will, left her residuary estate to ACCA to fund a Scholarship programme to be called the ‘Simpson Scholarship’. Congratulating Sehrish on her achievement, Mr Arif Masud Mirza, Head of ACCA Pakistan, said: “Sehrish, like the other Scholarship winners, is an exceptional student and also demonstrates the values of ACCA. She aspires to serve public interest, just as ACCA members all over the world support their local businesses and aid their development. The five students chosen are truly inspirational and we know they will make very good use of the Scholarship.”

Train the trainer - ACCA Pakistan Train the Teacher Initiative

Train the trainer - ACCA Pakistan Train the Teacher Initiative

19 November 2009

As part of ACCA Pakistan’s continued efforts to develop excellence in professional accounting education and establish best practices amongst professional accounting education providers, ACCA Pakistan organised “Train the Trainer” workshop on 19 November 2009 at the Best Western Hotel, Islamabad. Dr. Afra Sajjad, Head of Education and Policy Development of ACCA Pakistan and Ms Shireen Naqvi, CEO, School of Leadership were the event facilitators.

The workshop participants were faculty members of ACCA Approved Learning Partners in Pakistan. The participants appreciated ACCA efforts at enhancing the capacity of professional accounting education faculty. They were of the opinion that the workshop was useful and relevant to their work as it enabled them to learn new teaching skills and methods. They opined that the workshop has energised them and they were motivated to improving students’ exam performance.

Speaking at the event, Dr. Afra Sajjad, Head of Education and Policy Development of ACCA Pakistan stated “Train The Trainer is manifestation of ACCA Pakistan’s commitment to faculty development of professional accounting education tuition providers. Our students have demonstrated ability and potential to be world class professional accountants. Through initiatives like Teach Excel we are facilitating ACCA tutors to help young men and women of Pakistan to pursue their ambition of successful career in finance, accounting and taxation successfully as well as be world class professional accountants”. Ms Shireen Naqvi emphasised on achieving student excellence through motivation not only in exams but also in their professional life.

ACCA Pakistan Discussion Forum 2009: Looking Beyond Audit Committees

ACCA Pakistan Discussion Forum 2009: Looking Beyond Audit Committees

29 September 2009: Many of the causal factors of the current economic conditions seem to be inextricably linked to a failure in corporate governance. Regulatory boxes may have been ticked but fundamental principles of good governance were breached. Board of directors needs to emphasis more on the performance of corporate governance than with its regulatory compliance. Boards should set clear goals, accountabilities, appropriate structures and committees, delegated authorities and policies. They should provide sufficient resources to enable executive management to achieve the goals of the organisation through effective management of day-to-day operations and monitor management’s progress towards the achievement of these goals. Board performance may be enhanced by setting up business useful board committees.

ACCA Pakistan is holding a discussion forum in Karachi on 1 October 2009 to deliberate upon best Corporate Governance practices in the current challenging economic conditions. The aim of this discussion forum is to initiate a discussion on the business case for board committees other than the audit committees.

Discussion forum will be featuring top management executives from banking and business community to share their views and reflections on the topic. It will also be attended by members and approved employers of ACCA Pakistan.

Signs of recovery based on fragile evidence, says ACCA survey

Signs of recovery based on fragile evidence, says ACCA survey

Claims that the world’s economy is recovering is based on fragile evidence, according to the latest Global Economic Conditions Survey by ACCA (the Association of Chartered Certified Accountants).It has repeated its warning that world economic leaders should guard against complacency - and not confuse less panic over the crisis with strong evidence that the recession is over everywhere.

ACCA’s third quarter survey of 1,200 finance professionals in 92 countries has shown that while more finance professionals now believe the downturn has ‘bottomed out’ they also believe that a reliable recovery is still unlikely to return before late 2010 - more than a year away. Although business confidence continued to recover in the third quarter of 2009, those who saw improvements in conditions (31%) were still outnumbered by those who had lost confidence (33%).

While increasing percentage of members (34%) now believe that global economic conditions are either about to improve or already improving, the emerging consensus, expressed by 44% of respondents, appears to be that current conditions mark the bottom of the downturn and will persist for some time. Nearly 40% are reporting that their organisations’ income is unlikely to change over the next 3 months, with an equal number anticipating further losses of income, while only 22% have seen their prospects improve.

The survey also shows that as business incomes continued to decrease in the third quarter of 2009, there was a rise in late payment as well as supplier and customer bankruptcies. Investment in staff fell at an accelerated rate in the third quarter and investment in capital projects, which had previously shown signs of stabilising, seems to be weakening further.

The figures also revealed dramatic differences in how finance professionals thought government would react to the situation, with 77% of respondents in Africa and 60% in the Asia-Pacific region expecting increases in public spending, while 68% of Western European respondents expecting spending cuts. Western Europe was the only region in which public spending was, on balance, expected to fall over the next five years.

Online career planning for finance professionals

Online career planning for finance professionals

A new online training resource – developed by accountants for accountants - is launched today by ACCA (the Association of Chartered Certified Accountants).Called ACCA COMPASS, the resource assesses core competencies and abilities online. It is unique to ACCA and developed for accountants by finance professionals.

The resources allow members to benchmark their skills against a given role at various levels of experience. It also allows them to create a development pathway on the same career trajectory or into a parallel track. This is complimented by a guide book, also available online, "ACCA guide to career pathways in public practice".

Mr Arif Masud Mirza, Head of ACCA Pakistan, commented: “Our career pathways guide offers advice on working in areas such as audit, taxation and advisory work. It can help people answer the tough career questions like ‘Is this role right for me? How do I progress? Where do I go next?’ “Some may think they are locked into a particular role - but external moves are possible with careful career planning. For instance some public practice audit professionals can and do move into the corporate sector.”

“Continuing professional development (CPD) is integral to any credible profession - legal, medical and financial. When it comes to accountancy, to add value to their clients, all accounting professionals must remain competent and up to date throughout their careers - and with ACCA this is done through our dedicated CPD scheme called ACCA Realise. Together with ACCA Compass, accountants can be assured that they will be bringing benefit to business, that they'll be pointed in the right direction and that they will be taking an active role in their own careers.

ACCA Partners with OMV

ACCA partners with OMV

ACCA Pakistan has awarded Platinum Approved Employer Status to OMV. This award is the highest level recognition in the Approved Employer Scheme and symbolizes OMV’s achievement of attaining best practice standards relating to the support of ACCA trainees and members in the workplace.

Mr Markus Turczyn, Head of Finance, OMV, commended ACCA Pakistan as their Professional Development and Training Partner and said that, “OMV will achieve new horizons of best practice standards through this partnership of professional excellence, which will develop our Finance Team to meet the challenges of Exploration & Production Accounting”.

Congratulating, OMV on this occasion, Mr Arif Masud Mirza, Head of ACCA Pakistan lauded OMV’s dedication towards employee retention and talent cultivation and said that this strategic partnership will indeed have a remarkable impact on their business value.

Also present at the ceremony were, Mr Syed Raza Haider – Financial Controller, Mr Naveed Akhtar – Manager JV Accounts and Mr Adeel Rahmani – HR Manager from OMV and Mr Haroon A Jan, Head of Business Development, ACCA Pakistan.

Paper 1.1 Chapter 2

Paper 1.1
Chapter 2

The Accounting Concepts – Part 1 (The Summary)

Just a basic summary of those little things that we always tend to forget.
The Going Concern Concept implies that a business is a going concern, i.e. that
there is no reason to expect the liquidation of assets. Thus, the business may be
valued at its historical, or current cost, rather than its break-up or replacement
value. A further example to illustrate the application of the Going Concern concept,
may be clearly seen, when stock is valued. It is a practice to value stock at the lower
of its net realizable value or cost of purchase, this is because the going concern
concept implies that the stock is held to be sold at a future date.

The Accruals Concept is based on several ‘ideas’ or practices, which may be clearly
illustrated, if summarized in the following form:

1. Revenue and Costs must be recognized as they are earned or incurred.
2. Revenues must be matched with costs, and vice versa, and dealt with in the profit
and loss account of the period to which they relate.

It is for this reason, that we actually disclose the value of the creditors in the Balance
Sheet, and the value of debtors. Furthermore, although we may have paid rent of
BD 1000, for the next two years for example, we may only note the amount relevant
to this year’s profit and loss account, and the remaining balance, as a prepayment in
the Balance Sheet.

Furthermore, this is the reason why it is required to account for sales and purchases
when made, even though on credit, rather than when they are paid for.

As well as this, the figure for closing stock is also deducted from the figure of
purchases because the figure of closing stock relates to the opening stock figure of
next year’s accounts.

The Prudence Concept

1. a) Where there are alternative procedures
b) Or alternative valuations
c) The one selected should be the one which gives the most cautious
presentation of the business’s financial position or results.

2. a) Revenues and profits are not anticipated but are related to the period in
which they occur. E.g. when a sale is made.
b) Provision is made for all known expenses or losses whether these are known
for certain or just estimates.

What definition means in layman’s terms is simply, if the company is in doubt about
an expense or a liability that it may have, it should create a provision for it
immediately, and if the company anticipates any future gains or profits, from a future
sale for example, it should ignore it, unless realized.

Examples:

1. Provisions for Bad & Doubtful Debts
2. Stock should be valued at the lower of net realizable value or cost

Sales Revenue could be realized, if the following circumstances apply:

1. The transaction is for a specific quantity of goods at a known price.
2. The sales transaction is completed or it is known for certain that it will be
completed.
3. Cash is received for a purchase, or it is virtually certain that cash will eventually be
received.

Consistency Concept states that similar items within a single set of accounts, should
be similarly accounted for, and that they are treated the same from one period to
another.

The Entity concept states that a business must be regarded as a separate entity
distinct from its owners or managers.

Money Measurement, states that accounts will only deal with those items to which a
monetary value can be attributed, which means that subject matter such as staff is
ignored.

Separate Valuation Principle refers to the amount/cost attributable to an asset /
liability, since the valuation should deal with each component separately. E.g. an
independent valuation should be obtained for each item of stock, and their net
realizable values should then be aggregated to obtain the total value of stock.

The Materiality Concept refers to the following:

Only items material in amount or in their nature affect the true & fair view given by a
set of accounts. In other words, immaterial items are not paid that much attention.
But this is obviously based on a subjective judgment in deciding whether an item is
immaterial or not. Either way, the amount of the item and its context must be
considered.

Historical Cost Convention states that transactions should be recorded at their cost.

Stable Monetary Unit states that the Financial Statements must be expressed in
terms of a monetary unit, e.g. $.

Objectivity Concept states that accounts must be free from bias or subjectivity as
much as possible.

Time Interval, states that the activities of an entity must be split up into blocks of time,
e.g. daily, monthly or annually.

Substance Over Form, refers to a transaction in two distinct ways, ‘subject’ and
‘form’. Thus, the transaction should be accounted for and presented in accordance
with their economic ‘substance’ not their legal ‘form’. E.g. assets required on a hire
purchase are not legally owned by the buyer even though the substance of the
transaction refers to the buyer as the owner.

The Realization Concept states that revenues and profits are recognized when they
are realized. Basically the Realization Concept refers the question of when does an
entity realize a profit or a gain?
Simply, revenue may be recognized at the point of sale, when the following
conditions are satisfied:

1. The product or service has been provided to the buyer
2. The buyer recognized his liability to pay for the goods
3. The ownership of the goods has passed from the seller to the buyer.
4. The buyer has indicated his willingness to pay.
5. The monetary value of the goods has been established.

Revenue or profits may also be recognized at other situations even if a sale hasn’t
been established, such as:

1. Longterm Contracts, where profits/revenues are recognized when the production
on a section of the total contract is complete, rather than when the entire project is
complete.
2. Retail & Hire Purchase, where an actual sale isn’t made unless the buyer finishes
all of his installments. In this case, profit would be the interest added to the cost of
the asset sold.

Paper 1.1 Chapter 1

Paper 1.1
Chapter 1

The Definition, Purpose, and the Regulatory Framework of Accounting

Well, this report isn’t an introduction to accounting as it may seem to be. It’s more like
a summary to the purpose of studying paper 1.1 .

Accounting is a way of recording, analyzing, and summarizing transactions of a
business.

Transactions are recorded in books of prime entry, and then analyzed and posted to
the ledgers and finally they are summarized in the financial statements.

Yet, the term ‘Accounting’ not only refers to Financial Accounting, but moreover,

a) Management Accounting
b) Financial Management
c) Auditing

The Purpose, of going through the process of preparing financial statements, may not
be required or needed by most companies, yet some must comply to do so by law.
Nonetheless, they are prepared so that owners, managers, lenders and other
interested parties can see how the business is doing. In other words, to provide
information about the financial position, performance and financial adaptability of an
enterprise that is useful to a wide range of users.

Depending on the users of financial statements, many may require access to different
information, but all share some basic needs. Some of the basic users of financial and
accounting information are:

a) Managers
b) Shareholders
c) Trade contacts
d) Providers of Finance
e) Governments and their Agencies, e.g. Inland Revenue and Registrar of
Companies
f) Employees
g) Financial Analysts and Advisors
h) Investors/ Public

As one may imagine, it may be very hard to satisfy all of the different users, yet, the
basic financial statements at the end of the day, are:

a) The Profit and Loss Account
b) The Balance Sheet

Furthermore, some companies may be required to produce annual reports, which
contain :

Non-Financial Statements, such as:
a) Director’s Report
b) Auditors’ Report
c) Chairman’s Report

Limited companies are required by law to prepare and publish accounts annually. The
form and content of the accounts are regulated primarily by the Companies Act 1985,
but must also comply with accounting standards.

The Regulatory System

Basically the Company Law requires that all companies must comply with the
Companies Act. Of the many requirements and regulations, it must be brought to one’
s attention, that the Financial Statements are required to represent a True and Fair
view of the state of affairs and Profit and Loss.

The Accounting Standard’s Board, previously known as the Accounting Standard’s
Committee, has issued the Accounting Standards, such as FRS’s and SSAP’s. The
accounting standards were developed with the aim of narrowing the areas of
difference and variety in accounting practice.

The Urgent Issues task force is an important part of the ASB in that it is required to
tackle urgent matters not covered by existing standards. The review panel, is
concerned with the examination and questioning of departures from accounting
standards by large companies.

Furthermore, the companies are required to follow the Accounting Policies, set out in
FRS 18 and the Companies’ Act. Those policies, are summarized in the diagram
above, but it must be noted that there is a distinction between the accounting policies
and accounting estimates.

The accounting policy is concerned with:

a) the recognition
b) Selection of measurement base and
c) Presentation

Of assets, liabilities, gains and losses of an entity. E.g. ‘Prudence or Accruals’? The
choice must be based on which may provide the most true and fair view.

The accounting estimate is the method used to establish the monetary value of
assets, liabilities, gains and losses using the measurement base selected by the
accounting policy,
e.g. depreciation (straight line or reducing balance?)

The ASB also developed a Statement of Principles, which is concerned by:

a) the objective of financial statements
b) the reporting entity
c) The qualitative characteristics of financial information.

Basically the statement of principles provided a Conceptual Framework, which forms
the theoretical basis for determining which events should be accounted for, how they
should be measured and how they should be communicated to the user. A conceptual
framework is a statement of generally accepted theoretical principles, which form the
frame of reference for financial reporting. These theoretical principles provide the
basis for the development of new reporting standards and the evaluation of those
already in existence. In other words, they are there to provide consistency, clarity and
information.

Furthermore, companies are required to comply with the regulations of the European
union, and various international bodies, and any stock exchange requirements
depending on their circumstances.

In addition to the Financial Statements, limited companies are required to provide
certain notes and disclosures to the accounts, such as:

1. Statement of movements in reserves
2. Details of Fixed Assets
3. Details of post balance sheet events
4. Details of contingent liabilities and contingent assets
5. Details of research and development expenditure.
6. Statement of total recognized gains and losses.
7. Note on historical cost profits and losses.

The following are the important features of Financial Statements

1- Relevance 3-Reliability 5-Objectivity 7-Comparability
2-Comprehensibility 4-Completeness 6-Timeliness

The Qualitative Characteristics of Financial Statements

Content
a) Relevance – Info that has the ability to influence decisions, Predictive Value,
Confirmatory Value.
b) Reliability – Info that is complete and faithful representation. Free from material
error, faithful representation, neutral, complete, and prudence.

Presentation
a) Comparability – similarities and differences can be discerned and evaluated.
Consistency and Disclosure.
b) Understandability – the significance of the information can be perceived. Users’
abilities, Aggregation and classification.

ACCA Pakistan organising ICFE week

ACCA Pakistan is launching International Certificate in Financial English (ICFE) Qualification in Pakistan this week (20 – 27 July 2009). During the week, ACCA will undertake a series of activities including presentations to well-known organisations in the IT, telecom, banking and FMGG sector and educational institutions. Other activities include radio show, free pre-testing for ICFE exams and seminars at ICFE tuition providers including SBS, CAMS, CFTR and Berlitz in Karachi. (pls change as per region)
The ICFE Qualification is jointly conceived by ACCA (the Association of Chartered Certified Accountants) and University of Cambridge ESOL (English for Speakers of Other Languages) Examinations. It comprehensively develops ability across the four skill areas of reading, writing, listening and speaking. ICFE is particularly relevant for finance and accountancy professionals needing to perfect their financial English skills or for finance and accountancy students preparing for professional exams or individuals required to present and interpret financial information.
We take pride in sharing with you that Cambridge ESOL examinations are recognised by over 50 well reputed organizations in UK including Pricewaterhouse Cooper, World Bank, KPMG and Procter & Gamble. According to Ms Zainab Khan, Recruitment Manager ICI Pakistan, "Business success is inseparable from successful communication. Our businesses constantly demand excellence in communication, internally and externally. The English language is the the most widely used business language and is a tool we cannot do without. Therefore the Cambridge ICFE may well be an ideal solution to prepare our employees to deliver to our requirements. We certainly see it as a valuable addition to an ambitious accountant’s CV which may well improve his or her career ".

Arif Masud Mirza, Head of ACCA Pakistan says: "Being the international language of finance and accountancy, it is vital for professionals to have first-rate financial English language skills and the ability to communicate confidently with colleagues from the international business community".
Shamez Mukhi, Head of Marketing, Communications and Media Relations, ACCA Pakistan, said that, "Activities of the ICFE week are aimed at creating awareness about need of financial English skills. In the global economic scenario, finance professionals can not afford to have mediocre financial English skills."

For further information please contact:
Mr Shamez Mukhi- tel: +92 21 111 22 22 75
shamez.mukhi@pk.accaglobal.com

ACCA student from Lahore wins international prize

Muhammad Azhar Azim, a student of ACCA from Lahore, Pakistan, is one of the three successful students who have received the Sir David Tweedie Award for 2008. In the prize ceremony held in London - UK this week, Sir David Tweedie in presence of Brendan Murtagh, President ACCA and other dignitaries presented the award to Azhar Azeem and the other two winners, each from Tanzania and the UK. This award is presented to students who score highest mark globally in Paper P2 (Corporate Reporting) of ACCA Qualification.

Mr Arif Masud Mirza, Head of ACCA Pakistan, lauded the achievement of Azhar Azeem as “a reason of pride and inspiration for ACCA Pakistan, and a proof of the commitment and hard work of Azhar Azeem supported by his family and teachers”.

[Analysis]ACCA Pakistan appreciates relief to automobile and telecommunications industry

By Dr Afra Sajad, Head of Education and Policy Development, ACCA Pakistan

The Federal Budget announced in the National Assembly on 13 June 2009 aspires to facilitate economic stabilization by mitigating poverty, revitalizing the industrial sector, advancing the agricultural sector, reducing price inflation, raising tax revenue by relying on indirect taxes and further taxing the existing tax payers. As none of the four sectors for enhancing the tax revenue as identified by the government before the budget announcement has been taxed, the Federal Budget 2009-10 may not be able to address the prodigal challenge of increasing the tax base. There is not much evidence that the budget encourage savings and investment thus raising concerns about sustainable economic growth.

The current budget places heavy reliance on financial aid from the Friends of Pakistan and other donors. In case the foreign financial aid is not received, the government may obtain IMF funding or borrow from banks. This would ultimately result in inflation with the burden being borne by common man.

ACCA supports export efficiency and thus believes that the export encouragement benefits announced in the budget are steps in the right direction. There is also an increasing need to reduce reliance on imports. Innovative measures like exploring the option of growing tea leaves in the country and reducing the import expenditure on tea may be considered.

ACCA believes that local industrial growth would result in employment creation, national productivity and economic growth. Thus the relief to automobile, mobile sector and cement sector is appreciated. Duties and taxes on import of luxury items may also have further stimulated local industrial growth.

The Budget proposes levy of carbon surcharge (carbon tax) on POL products. In its present form, carbon surcharge which would replace the Petroleum Development Levy (PDL) might inflate the POL prices consequently affecting small businesses and consumers. ACCA believes that a fair mechanism for the imposition of carbon taxes aligned with the principles of carbon taxes need to be devised. Carbon Tax is a means to achieve stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Carbon Tax only intends to tax the carbon content of the fuel consumption rather than the entire fuel consumption as proposed by the Finance Bill. The carbon tax collected may be used to fund environmental related projects. The proposed withdrawal of duties on wind power plants and initiatives for the water conservation are in line with ACCA Budget Proposals. ACCA Budget Proposals advocate social equality thus we support the social welfare initiatives announced in the budget. The success of poverty alleviation measures announced in the budget for example Benazir Income Support Fund and the increase in micro-finance lending depends greatly upon transparency and effectiveness in implementation of these schemes. Against the background of reduced donor funding for micro-finance institutions and increasing inflation where the borrowers struggle to payback the principal amount and the interest, the announced increase in micro-finance lending may be an ambitious target. The sustainable development of SMEs is essential for employment creation. ACCA Pakistan advocates convenient access to finance for SMEs through better resource allocation thus we hope that the Rs.10 billion fund created for SMEs would achieve the desired outcome of SME survival and subsequent growth. We appreciate FBR for introducing the accelerated depreciation for alternate energy projects, the measure being at par with the ACCA Pakistan budget proposals that suggested the tax relief in form of accelerated depreciation on capital equipment purchased to ensure the continuity of power supply.

ACCA Pakistan joins hands with Lahore Stock Exchange

March 24th, 2009 shamsa

ACCA (Association of Chartered Certified Accountants) awarded Lahore Stock Pakistan Ltd with Platinum Approved Employer Status and Continuous Professional Development (CPD) Approved Employer Status in recognition of their commitment towards training and development of ACCA trainees and members. ACCA’s Approved Employer Scheme plays a pivotal role in the recruitment, development and retention of the ACCA trainees and members. As a benefit of being an approved employer, all ACCA trainees and members working for Lahore Stock Exchange will have an access to ACCA’s specialist resources customized for learning and development of finance and accountancy professionals. This close relationship will indeed attract talented human capital and demonstrate the organizations’ commitment towards development of employees –in turn leading to talent retention. During the award presentation ceremony Mr Mian Shakeel Aslam, Managing Director, Lahore Stock Exchange, said that “The growing economy of our country is in dire need of appropriately skilled and qualified professionals who have high moral and ethical values. It is through organizations such as ACCA, that we expect to meet the rising need of accounting and finance professionals”. Speaking at the occasion Mr Arif Masud Mirza, Head of ACCA Pakistan said that, “The ACCA Approved Employer Programme supports organizations in reaching global best practice in the provision of learning and development opportunities for ACCA trainees and members. Employers like Lahore Stock Exchange have great impact on society and ACCA is proud to be associated with them.Ch. Afzal Rahat – Member Director, Lahore Stock Exchange, Mr Jawwad Ahmad – Head of Internal Audit, Lahore Stock Exchange, Mr Shah Hussain – Head of Marketing and PR, Lahore Stock Exchange and Mr Muhammad Shahid Khan – Business Development Executive, ACCA Pakistan were also present at the ceremony. {PR}

ACCA Pakistan joins hands with Lahore Stock Exchange

March 24th, 2009 shamsa

ACCA (Association of Chartered Certified Accountants) awarded Lahore Stock Pakistan Ltd with Platinum Approved Employer Status and Continuous Professional Development (CPD) Approved Employer Status in recognition of their commitment towards training and development of ACCA trainees and members. ACCA’s Approved Employer Scheme plays a pivotal role in the recruitment, development and retention of the ACCA trainees and members. As a benefit of being an approved employer, all ACCA trainees and members working for Lahore Stock Exchange will have an access to ACCA’s specialist resources customized for learning and development of finance and accountancy professionals. This close relationship will indeed attract talented human capital and demonstrate the organizations’ commitment towards development of employees –in turn leading to talent retention. During the award presentation ceremony Mr Mian Shakeel Aslam, Managing Director, Lahore Stock Exchange, said that “The growing economy of our country is in dire need of appropriately skilled and qualified professionals who have high moral and ethical values. It is through organizations such as ACCA, that we expect to meet the rising need of accounting and finance professionals”. Speaking at the occasion Mr Arif Masud Mirza, Head of ACCA Pakistan said that, “The ACCA Approved Employer Programme supports organizations in reaching global best practice in the provision of learning and development opportunities for ACCA trainees and members. Employers like Lahore Stock Exchange have great impact on society and ACCA is proud to be associated with them.Ch. Afzal Rahat – Member Director, Lahore Stock Exchange, Mr Jawwad Ahmad – Head of Internal Audit, Lahore Stock Exchange, Mr Shah Hussain – Head of Marketing and PR, Lahore Stock Exchange and Mr Muhammad Shahid Khan – Business Development Executive, ACCA Pakistan were also present at the ceremony. {PR}

ACCA welcomes completion of IASB’s ‘most important project’

(Press Release)

The International Accounting Standards Board’s (IASB) new standard for small and medium sized enterprises (SMEs) will have a significant impact on millions of companies around the world, says ACCA (the Association of Chartered Certified Accountants) in welcoming the announcement.

Despite concerns by many that the new simplified standard, which still runs to more than 200 pages would be too complex for small businesses to use, ACCA’s own research shows little concern in this area.

Richard Martin, Head of Financial Reporting at ACCA said: “We are delighted that the IASB has completed its most important project after five years’ work. It comes at a critical time, because it will mean that countries will be able to apply IFRS to companies of all sizes and not need to operate two systems of financial reporting, with one for large listed companies and another for smaller or unlisted privately owned companies. ACCA has always supported IFRS as a global accounting language for listed companies – now this has been opened up for smaller businesses too.

“The use of international standards across the board should add credibility to the financial statements of unlisted companies, at a time when potential users of accounts want to be able to rely on the figures they see,” he said.

“There has been concern from some quarters that despite attempting to simplify standards for SMEs the IASB had produced something which was still far too complex. However, when we field tested the exposure draft in the UK we found that small companies and their accountants were able to apply this without significant difficulty. We look forward to a widespread take up over the next few years as countries assess its usefulness in their context. ACCA is pleased that IASB as a global standard setter has recognised its obligation to make available the standard and related educational material to download for free to users,” added Richard Martin.

ACCA President Brendan Murtagh, who is a partner in an accounting practice, said: “In my practice we imagine this will be warmly accepted as best practice by our clients very quickly. A set of standards which is more easily understood by smaller businesses, their potential investors, customers and suppliers can only help organisations to survive in these tough trading conditions and to potentially thrive when the current situation eases.”

Economic conditions place CFOs in the spotlight

he economic downturn has raised the senior finance executive’s profile in organisations worldwide, with more Chief Financial Officers (CFOs) involved in strategy development and prioritising risk management than this time last year, finds new research from CFO Research Services and ACCA (the Association of Chartered Certified Accountants) published today.

Surveying more than 450 CFOs worldwide on how current global economic conditions are shaping the role and perceptions of today's CFO, the research report, called “The CFO’s new environment”, reveals that:

· Finance is in the spotlight – 83 per cent of respondents say the finance chief’s role is more important than a year ago, with 70 per cent agreeing that the finance function receives more boardroom backing now than a year ago.

· The CFO is more involved in strategy – 72 per cent of survey respondents agree that finance now works more closely with business units in strategic planning, while two thirds agree that the CFO is now more involved in the creation of a medium and long term corporate strategy.

· Communication levels have increased - 77 per cent say that they have either increased or plan to increase the amount of internal communication carried out by their company, while two thirds say they have increased or plan to increase the amount of external communications.

· Risk management is now a priority for many CFOs – 4 out of 5 CFOs say they are taking a more active role in this field and two thirds of respondents say they plan more education for their teams in this area.

Mr Arif Masud Mirza, Head of ACCA Pakistan says: “When we commissioned this report, we wanted to find out how the new economic environment is shaping the CFO’s role and affecting the perception of their organisational value. The results show that CFOs are rising to the challenges brought about by global economic conditions, even though some will not have experienced such a severe downturn in their careers so far.

“Organisations are looking for CFOs to bring their knowledge to bear on the wider business, using their analytical ability to understand and deal with risk, and help shape long-term strategy. It is a tall order, but it seems from these findings, that CFOs are more than equal to the task. Despite the increasing demands on their time, we may well be witnessing a renaissance for the CFO, with their expertise extremely highly-valued and sought-after in these tough times.”

Notes to Editors

1. ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 362,000 students and 131,500 members in 170 countries worldwide.

2. ACCA has worked with governments, national organisations and development agencies in emerging economies- for over 20 years- promoting the accounting profession, to create value for the communities, businesses and individuals it serves.
3. ACCA believes that globalisation of business means that one set of reporting standards is essential. We favour the principles-based IFRS.
4. ACCA understands the real issues facing small businesses as 63,000 of our members work in SMEs or small partnerships worldwide.

ACCA Students Quiz Pakistan outshines UAE and Sri Lanka

ACCA Pakistan recently organized its fifth annual quiz for the CAT and ACCA students across the country. The regional contests were held in Lahore, Karachi and Islamabad on 23 August 2008 in which 21 teams from different ACCA tuition providers participated.The regional winners contested in Karachi and Rise School of Accountancy from Punjab region won the national title.
The ACCA Quiz 2008 was supported by the University of Cambridge UK.ACCA also hosted the first international quiz in Karachi today in which participants from Pakistan, United Arab Emirates and Sri Lanka contested for the international challenge. The excitement of this challenge was shared by a huge audience including students and teachers from various local institutions.
The Pakistan team received the winning international shields from the honorable minister for youth affairs, Syed Faisal Sabzwari and Mr. Arif Masud Mirza, head of ACCA Pakistan. In his address, the youth minister congratulated the contestants for an extra-ordinary zeal and enthusiasm in the quiz. He lauded ACCA Pakistan for providing a platform for the youth to demonstrate their talent and for organizing the first ACCA international quiz in Pakistan.
The minister was thrilled to see the level of knowledge of the youth not only the accounting and finance but also general knowledge, IT and English. He said ACCA Pakistan has set a benchmark for other accounting and finance institutions for enhancing knowledge, motivation, cultural diversity and competition spirit in the youth. He welcomed participation from Sri Lankan and UAE teams to Karachi.While appreciating the support of the youth minister, Mr. Arif Masud Mirza applauded the participation of the ACCA teams from various institutions in Pakistan, UAE and Sri Lanka. He mentioned that ACCA Pakistan will invite more international teams in the contest next year. He explained the purpose of such events is to inculcate tolerance, unity and team spirit in ACCA students. Through this competition ACCA Pakistan has showcased the ACCA and CAT qualifications.

About ACCA:ACCA (Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
Courtesy of ACCA Pakistan

The ACCA-WWF Pakistan Environmental Reporting Awards

Welcome to the ACCA-WWF Pakistan Environmental Reporting Awards. The Awards are a major public-interest initiative taken by ACCA and WWF Pakistan, to support and promote best practice in Environmental and sustainability reporting in the country. The aims of the Awards are:

• to recognise organisations which disclose information about the environmental and social impacts of their activity
• to raise awareness of corporate transparency issues
• to encourage the uptake of environmental and sustainability reporting

Taking part

The call for entries to the ACCA-WWF Pakistan Environmental Reporting Awards is now open. Please visit the 2008 Awards page for details.

Further information

If you have any questions about the ACCA-WWF Pakistan Environmental Reporting Awards, please contact:

Dr. Afra Sajjad
Head of Education & Policy Development
ACCA PAkistan
61-C, Main Gulberg
Lahore
tel: +92 (0)42 111 22 22 75
fax: +92 (0)42 575 9346
e-mail: afra.sajjad@pk.accaglobal.com

http://pakistan.accaglobal.com/pakistan/

ICMA, CIMA & ACCA Trainees Required (Karachi)

Employer:
Industry: Finance and Accounts
Location: Karachi, Pakistan

BCOM, ICMA, CIMA & ACCA trainees required by a chartered accountant firm for Accounting & bookkeeping assignments.

Stipend starting from Rs. 2,000/= per month.

Minimum commitment required is 2 years.

http://www.apnijobs.com/bcom-icma-cima-acca-trainees-required-karachi.html/email/

ACCA Insider

A Perfect Storm for Consumer Financing?
You don't need us to tell you that consumer financing is in freefall. More major players in direct HVAC financing are pulling out of the market, or tightening their requirements substantially. Now a major piece of credit card "reform" legislation looks like it may make it even harder for consumers to access credit lines to replace their HVAC equipment.

On the one hand, replacement of inefficient HVAC systems is the best way to lower our nation's energy use and dependence. On the other hand, if people can't access credit to make the purchase, then many of them won't make it.

Some supporters of financing "reform" openly admit that their goal is to change America's consumer culture and get more people to save rather than spend. But many of these same supporters are just as forceful in their desire to improve energy efficiency and the environment. Installing better HVAC systems is the best way to do this, but without financing, it's not going to happen.

ACCA Chairman Stan Johnson is looking to call together a top-level summit of HVACR industry leaders from across all sectors to talk about financing and what, if anything, we can do as an industry. But we need to hear from you -- we need your stories and facts on how the current financing environment is affecting your business.

Are you having to turn customers away because of financing problems, and thus leaving in place inefficient systems? (If the answer is "no" then we still need to hear from you!) Have you had any success working with local banks on financing? Are you pursuing or implementing any innovative arrangements, or do you have any other ideas or insight on how to approach this problem?

Send your stories and comments on financing to kevin.holland@acca.org with the subject line "Financing" or just reply to this Insider email. Your thoughts are needed as we grapple with this vexing, economy-wide issue. We will also share stories and ideas in a special issue of the Insider.

ACCA Pilot Papers

F1:

Pilot Paper - questions and answers F1

F2:

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F3:

Pilot Paper - questions and answers F3

F4:

Pilot Paper - questions and answers F4 Questions

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F5:

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F6:

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Pilot Paper - questions and answers F6 Answers

F7:

Pilot Paper - questions and answers F7Qustions

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F8:

Pilot Paper - questions and answers F8 Questions

Pilot Paper - questions and answers F8 Answers

F9:

Pilot Paper - questions and answers F9 Questions

Pilot Paper - questions and answers F9 Answers

ACCA Focus - Pakistan newsletter

News Letter here:

http://pakistan.accaglobal.com/pubs/pakistan/members/focus/oct08

Syllabus for ACCA Papers

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Free ACCA Paper F2 Course notes

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