The Institute of Chartered Accountants of Pakistan (ICAP) has established Accounting Standards Board (ASB) which will give recommendations to corporations for accounts’ settings that are internationally acceptable.
ASB is established to reinforce the legitimacy of the standard setting process, to increase public confidence with increased transparency and wider participation of stakeholders to ultimately strengthen financial reporting in Pakistan.
China-Pakistan Economic Corridor is in full swing, Pakistan’s companies needed a board which could lead them according to international standards regarding making accounts, which was previously done by Accounting Standards Committee of ICAP. However, now it has established a full-fledged board for the purpose.
“The objective of ASB is adoption and smooth implementation of accounting standards aligning with the best global practices, ensuring consistency in disclosure and transparency in financial reporting in Pakistan,” said Farrukh Rehman first President of ASB while talking to Profit.
The composition of ASB includes representation from Securities Exchange Commission of Pakistan, State Bank of Pakistan, Pakistan Stock Exchange, Higher Education Commission of Pakistan, Auditor General of Pakistan and members of the industry and the Institute of Chartered Accountants of Pakistan.
The scope of ASB is to contribute towards the adoption, development, implementation of high-quality accounting standards, issue guidance and deal with all related matters.
Transparency and good governance aids in boosting investor confidence and this is the catalyst for attracting foreign and local investors the much-needed impetus for strengthening our economy, said Farrukh who is also a partner in A.F.Ferguson & Co and has been contributing at the South Asian Federation of Accountants (SAFA) as a member of their Committee on Accounting & Auditing Standards and Professional Ethics.
ASB will be engaging with all stakeholders to address the gaps in the local accounting framework to align with the international best practices giving due consideration to local ground realities, ensuring a level playing field for all. “It is our keen desire to see Pakistan as an economically stable and prosperous country in the dynamic and ever-changing global arena which is shadowed with uncertainty and geopolitical challenges,” he said.
The first meeting of ASB was held on 6th of April and chaired by Farrukh Rehman, the representatives of regulators included: Ali Azeem Ikram, Executive Director SECP; Ayesha Riaz, Additional Director SECP; Farhan Ansari, Head of Internal Audit PSX and Shaukat Zaman, Director SBP. The three industry representatives included: Aftab Mahmood Butt, Chief Executive Officer Kot Addu Power Company Limited; Adnan Afaq, Managing Director, Pakistan Credit Rating Agency Ltd and Raymond Kotwal, Chief Financial Officer Habib Bank Limited. Khurram Raza Qureshi, Director General IR&C (represents) the Auditor General of Pakistan.
The academia was represented by Dr Farrukh Iqbal, Dean of Institute of Business Administration, a nominee of HEC. The other members represent practitioners were Asad Ali Shah, Partner Deloitte Yousuf Adil and Past President of ICAP; Mohammad Maqbool, Partner Maqbool Haroon Shahid Safdar & Co. and ICAP Council member: Riaz A. Rehman Chamdia Partner EY Ford Rhodes and ICAP Council member, Syed Najmal Hussain, Partner KPMG Taseer Hadi & Co. and ICAP Council member; Shabbar Zaidi Partner, A.F. Ferguson & Co. and Past President of ICAP.
The Second meeting of ASB is scheduled on 12th May. According to bylaws of the board, at least one meeting of the board must take place in every quarter of a year.
