ISLAMABAD, Nov 22 (APP): The Securities and Exchange Commission of Pakistan (SECP), vide its Circular No 36 of 2016, has issued clarification regarding preparation of financial statements by the companies, subsequent to the promulgation of the new Companies Ordinance, 2016.
The new ordinance was promulgated on November 11, 2016, which sets out new requirements with regard to the preparation of financial statements by the companies, a statement issued by the SECP here on Tuesday said.
The SECP has realized that the companies shall find it difficult to comply with the requirements of preparing the financial statements as under the new law, in such a short span of time.
Owing to the practical difficulty being faced by companies, the SECP has decided that all the companies whose financial year closes before December 31, 2016, shall prepare their financial statements in accordance with the provisions of the repealed Companies Ordinance, 1984.
The new requirements shall be applicable to the companies having their financial year closure on or after December 31, 2016. Circular No. 36 has been placed on the SECP’s website.
It is available at https://www.secp.gov.pk/laws/circulars/.