In a major move to facilitate corporate sector, Securities and Exchange Commission of Pakistan (SECP) has allowed companies, whose financial year closes on or before December 31, 2017, to prepare their financial statements under repealed Companies Ordinance, 1984. In this regard, the SECP has issued circular number 23 of 2017 here on Wednesday.
According to the SECP, in continuation of circular No. 17 of 2017, dated July 20, 2017, issued by the SECP, the companies whose financial year closes on or before December 31, 2017 shall prepare their financial statements in accordance with the provisions of the repealed Companies Ordinance, 1984 owing to the difficulties faced by them as well as their auditors to comply with the provisions of the Companies Act, 2017 (Act). However, the companies whose financial year closes after December 31, 2017 shall prepare financial statements in accordance with the provisions of the Act, the SECP added.
It is important to mention here that earlier the SECP had issued circular No. 17 of 2017. Under this circular, subsequent to the promulgation of the Companies Act, 2017, it has been observed that companies whose financial year closes on or before June 30, 2017 may find it difficult to comply with the requirements as set out under the newly promulgated Act. Accordingly, the Commission has decided that the companies whose financial year closes on or before June 30, 2017 shall prepare their financial statements in accordance with the provisions of the repealed Companies Ordinance, 1984 and companies having their financial year closure after June 30, 2017 shall prepare their financial statements in accordance with the provisions of the Companies Act, 2017, the circular No. 17 of 2017 added.