Coporate Financial Reporting
CORPORATE FINANCIAL REPORTING
Assignment #1 On
* Sukuk (in context to Pakistan) * Listing requirements by KSE * IFSB * History of Accounting Standards and Adoption of IFRS * Deloitte Pakistan/Global Deloitte
(1) Sukuk (in context to Pakistan)
Sukuk is the Arabic name for financial certificates, but commonly refers to the Islamic equivalent of bonds. Since fixed income, interest bearing bonds are not permissible in Islam, Sukuk securities are structured to comply with the Islamic law and its investment principles, which prohibits the charging, or paying of interest. Financial assets that comply with the Islamic law can be classified in accordance with their tradability and non-tradability in the secondary markets. Sukuk means a financial instrument in the nature of redeemable capital evidencing undivided beneficial ownership of the holder in certain specific assets based on Shariah principles and concepts approved by a Shariah Advisor appointed by the issuer for this purposes.
ISSUE OF SUKUK
Eligibility for Issue of Sukuk
Any company or body corporate may issue Sukuk under section 120 of the Ordinance subject to the terms and conditions mentioned therein and in these Regulations.
The company or body corporate shall, before the Issue of Sukuk, obtain all necessary approvals from the relevant regulatory authorities, where applicable.
Conditions for Issue of Sukuk
Any company or body corporate that intends to Issue Sukuk shall fulfill the following conditions namely: * It has no over-due loan. * The issuer’s as well as the instrument rating is not lower than triple B minus (BBB-) assigned by a credit rating company registered with the Commission under the Credit Rating Companies Rules, 1995. * It has appointed Trustee through a trust deed for safeguarding interest of the Sukuk holders. * It has arranged appropriate security, where required, in the form acceptable to the Trustee. * It has obtained consent
Assignment #1 On
* Sukuk (in context to Pakistan) * Listing requirements by KSE * IFSB * History of Accounting Standards and Adoption of IFRS * Deloitte Pakistan/Global Deloitte
(1) Sukuk (in context to Pakistan)
Sukuk is the Arabic name for financial certificates, but commonly refers to the Islamic equivalent of bonds. Since fixed income, interest bearing bonds are not permissible in Islam, Sukuk securities are structured to comply with the Islamic law and its investment principles, which prohibits the charging, or paying of interest. Financial assets that comply with the Islamic law can be classified in accordance with their tradability and non-tradability in the secondary markets. Sukuk means a financial instrument in the nature of redeemable capital evidencing undivided beneficial ownership of the holder in certain specific assets based on Shariah principles and concepts approved by a Shariah Advisor appointed by the issuer for this purposes.
ISSUE OF SUKUK
Eligibility for Issue of Sukuk
Any company or body corporate may issue Sukuk under section 120 of the Ordinance subject to the terms and conditions mentioned therein and in these Regulations.
The company or body corporate shall, before the Issue of Sukuk, obtain all necessary approvals from the relevant regulatory authorities, where applicable.
Conditions for Issue of Sukuk
Any company or body corporate that intends to Issue Sukuk shall fulfill the following conditions namely: * It has no over-due loan. * The issuer’s as well as the instrument rating is not lower than triple B minus (BBB-) assigned by a credit rating company registered with the Commission under the Credit Rating Companies Rules, 1995. * It has appointed Trustee through a trust deed for safeguarding interest of the Sukuk holders. * It has arranged appropriate security, where required, in the form acceptable to the Trustee. * It has obtained consent