The International Credit Information (ICI), (Pvt) Ltd, recently organised a training session on 'Mutual Funds: Financial Reporting and Internal Controls.' The moot was attended by representatives of asset management companies, chartered accountant firms, and investors.
In his keynote address, Chairman, Mutual Funds Association of Pakistan Nasim Beg, outlined areas where applying conventional accounting practices would not give fair view of financial statements, as in case of mutual funds holding foreign investments.
He also mentioned the issue of consolidating mutual funds held by the asset management companies in its portfolio, which is presently with a technical committee of the Institute of Chartered Accountants of Pakistan for resolution. The program focused on reviewing financial reports of mutual funds, discussing best practices and ideas for improving its information contents.
The regulations applicable to financial reporting of close end and open-end mutual funds are stated in the Non-Finance Banking Companies and Notified Entities 2007 issued by the Securities and Exchange Commission of Pakistan in November 2007 (text available on its web-site). Area requiring changes, such as providing a performance table adjusted for dividends paid in different period in the Regulations, were also taken.-PR
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