Page 38 - Newsletter-November-2018

Newsletter The Institute of Chartered Accountants of Pakistan Party Transactions and Maintenance of Related Records) Update: Regulations 2018. The regulations specify the minimum parameters to be covered by a company in its approved International policy for related party transactions. Further, the regulations provide that the related party transactions IFRS Foundation publishes agenda and related in ordinary course of business on an arms’ length basis papers for upcoming IASB meeting: The IFRS shall not be subject to the company’s approved policy Foundation has published the agenda and related for related party transactions. papers for the International Accounting Standards Board (IASB) meeting scheduled on October 22-26, 2018. SECP issues draft amendments to the Non- Banking Finance Companies and Notified Entities The topics for discussion are: Regulations 2018: The SECP vide S.R.O 1196(I)/2018 ■ Primary Financial Statements (dated October 3, 2018) issued draft amendments to ■ Implementation Schedule IX of the Non-Banking Finance Companies and ■ Management Commentary Notified Entities Regulations, 2008 for public comments. ■ Preface to IFRS Standards The amendments require that for the assessment of ■ Disclosure Initiative satisfaction of fit and proper criteria where the sponsor ■ IFRS 17 Insurance Contracts and major shareholder is a body corporate, the corporate ■ Rate-regulated Activities behaviour of the said body, integrity and track record ■ Goodwill and Impairment of the sponsor and ultimate beneficial owners of such The agenda and the papers can be found on the link corporate body shall be duly considered in addition to below: the other relevant/applicable clauses. https://www.ifrs.org/news-and-events/2018/10/october- 2018-iasb-agenda-papers-agenda-available/ SECP issues the Foreign Companies Regulations 2018: The SECP vide S.R.O 1224(I)/2018 (dated October IAASB issues the ISA 540 (Revised) Auditing 5, 2018) notified the Foreign Companies Regulations Accounting Estimates and Related Disclosures: The 2018. The regulations set out requirements in respect of International Auditing and Assurance Standards Board registration, operations and other corporate matters of (IAASB) issued the ISA 540 (Revised) Auditing Accounting foreign companies operating in Pakistan. The regulations Estimates and Related Disclosures on October 3, 2018, to apply to all the foreign companies operating in Pakistan respond to the rapidly evolving business environment. except for Not for Profit Organisations (NPOs). The revision ensures that the standard continues to keep pace with the changing market and fosters a SECP issues the Companies (General Provisions more independent and challenging skeptical mindset and Forms) Regulations 2018: The SECP vide S.R.O in auditors. ISA 540 (Revised) will become effective for 1225(I)/2018 (dated October 8, 2018) notified the Companies (General Provisions and Forms) Regulations financial statements audit for periods beginning on or after December 15, 2019. 2018. The regulations set out 43 forms and returns covering the statutory reporting under the Companies Act 2017. The regulations repeal the Companies (General The revised standard can be found on the link below: Provisions and Forms) Rules 1985, the Single Member https://www.ifac.org/publications-resources/isa-540- Companies Rules 2003 and SRO 546(I) of 2017. revised-auditing-accounting-estimates-and-related- disclosures SECP issues amendments to the Limited Liability Partnership Regulations 2018: The SECP vide Update: S.R.O 1261(I)/2018 (dated October 10, 2018) issued amendments to the Limited Liability Partnership (LLP) Tax Regulations 2018. The amendments require an LLP to display the certificate of incorporation and maintain a FRestriction on purchase of certain assets for non- register of partners with a statement of their ownership filers percentages and associated voting rights at its registered Section 227C of the Finance Act 2018 (FA’18) imposed office. Further, the amendments require an LLP to keep a restrictions on non-filer on first registration of new copy of LLP Agreement including amended copies, if any, motor vehicles, and also on acceptance or processing at its registered office. of any application for registering, recording or attesting 38 November 2018