SECP clarifies preparation of financial statements

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has clarified that all those companies whose financial year, including quarterly and other interim period, closes on or before June 30, 2017, can prepare financial statements in accordance with the provisions of Companies Ordinance 1984, a circular issued said on Thursday.

The Companies Act, 2017, promulgated on May 30, 2017, sets out new requirements with regard to the preparation of financial statements by the companies. The SECP has realised that the companies may find it difficult to comply with the requirements of preparing the financial statements.

Owing to the practical difficulty being faced by the companies, the SECP has decided that all the companies whose financial year, including quarterly and other interim period, closes on or before June 30, 2017, would prepare their financial statements, including interim financial statements, in accordance with the provisions of the repealed Companies Ordinance, 1984, it added. The new requirements would be applicable to the companies having their financial year closure after June 30, 2017.