Habib Bank Limited (HBL) on Wednesday removed the confusion regarding difference between consolidated and unconsolidated (stand alone accounts) and accounting treatment relating to associates and subsidiaries.
In a letter, sent to the all three stock exchanges of the country, it was said that the financial results of the HBL were notified to the stock exchanges and the Securities and Exchange Commission of Pakistan (SECP) on August 3. However, confusion prevailed among the general public for the understanding of difference between consolidated and unconsolidated and accounting treatment relating to associates and subsidiaries.
The letter said that as per the requirements of the current regulatory framework, including section 237 of the Companies Ordinance 1984, HBL is required to prepare consolidated and standalone accounts. "In the consolidated accounts, financial results of subsidiaries and associations are consolidated on line-to-line basis with HBL results.
"Stand-alone accounts include dividend received from subsidiaries and associates, in accordance with the International Accounting Standards 27 and 28 applicable on banks. "As fully explained in the note to the stand-alone accounts and the notification to the stock exchanges, the fair value change in relation to quoted subsidiaries and associates recognised during the period amounted to Rs 10,518 million (post-tax amounted to Rs 6,837 million).
This equates with Rs 9.9 per share, which was included in the reported half-year's earning per share of Rs 18.54," said the letter. In the letter, it was mentioned that the excluding fair value change was as profit before tax Rs 9,788 million, profit after tax Rs 5,956 million and earning per share Rs 8.63, while including fair value change was as profit before tax Rs 20,306 million, profit after tax Rs 12,793 million and earning per share Rs 18.54.
Comments
Comments are closed.