Differences Between 4th and 5th Companies Ordinance Schedules
CORPORATE ACCOUNTING | DIFFERENCES BETWEEN 4TH AND 5TH SCHEDULE | |
INTRODUCTION
The Companies Ordinance 1984 is a broad piece of Pakistani legislation that, according to its own preamble, is “An Ordinance to consolidate and amend the law relating to companies and certain other associations”. It includes all legal rules and regulations for businesses registered with Security and Exchange Commission of Pakistan (SECP) and are enforced by that agency. The Ordinance also provides legal protection to the business community of Pakistan, with the SECP keeping a close check on financial and corporate entities to insure stakeholder’s interest. The purpose of this Ordinance is to ensure the viability and growth of corporate enterprises, protection of investors and creditors, promotion of investment and development of the economy and matters arising out of or in connection with enterprises that render it necessary to take immediate action. This law conferred the powers to be enforced by the SEC of Pakistan formerly known as the Corporate Law Authority (CLA). The company ordinance consists of eight schedules. The fourth schedule is regarding the Listed Companies and is required to comply with International Accounting Standards (IAS) and the fifth schedule deals with unlisted companies, the accounts are required to be compiled in accordance with the this schedule to the Companies Ordinance, 1984.
FOURTH SCHEDULE:
As briefed above, in the case of a listed company, the accounts are required to be compiled in accordance with the Fourth Schedule to the Companies Ordinance, 1984. The major disclosure features are as follows: * All material information necessary to make the financial statements clear and understandable. * If a fundamental accounting assumption, namely, going concern, consistency and accrual is not followed in preparation of financial statements, that fact together with the reasons therefore. * Significant accounting policies preferably in one
INTRODUCTION
The Companies Ordinance 1984 is a broad piece of Pakistani legislation that, according to its own preamble, is “An Ordinance to consolidate and amend the law relating to companies and certain other associations”. It includes all legal rules and regulations for businesses registered with Security and Exchange Commission of Pakistan (SECP) and are enforced by that agency. The Ordinance also provides legal protection to the business community of Pakistan, with the SECP keeping a close check on financial and corporate entities to insure stakeholder’s interest. The purpose of this Ordinance is to ensure the viability and growth of corporate enterprises, protection of investors and creditors, promotion of investment and development of the economy and matters arising out of or in connection with enterprises that render it necessary to take immediate action. This law conferred the powers to be enforced by the SEC of Pakistan formerly known as the Corporate Law Authority (CLA). The company ordinance consists of eight schedules. The fourth schedule is regarding the Listed Companies and is required to comply with International Accounting Standards (IAS) and the fifth schedule deals with unlisted companies, the accounts are required to be compiled in accordance with the this schedule to the Companies Ordinance, 1984.
FOURTH SCHEDULE:
As briefed above, in the case of a listed company, the accounts are required to be compiled in accordance with the Fourth Schedule to the Companies Ordinance, 1984. The major disclosure features are as follows: * All material information necessary to make the financial statements clear and understandable. * If a fundamental accounting assumption, namely, going concern, consistency and accrual is not followed in preparation of financial statements, that fact together with the reasons therefore. * Significant accounting policies preferably in one