Celebrating th 20 Year of Excellence

PIPFA JOURNAL Vol. 8 Reg. No.: MC-1112 July-December 2012 CONTENTS

Messages: Head Office: President, PIPFA 5 M1-M2, Mezzanine Floor, Park Avenue, 24-A, Block 6, Chairman, Publication’s Committee 6 PECHS, Shahra-e-Faisal, Karachi. Tel : 021-34380451-52, Fax : 021-34327087 Articles: E-mail : [email protected] Whistle Blowing — an inside bark 7 Website : www.pipfa.org.pk Resolving the complex revenue recognition issues in the 11 Lahore Office: development companies and construction of real estate 42 Civic Centre, Barkat Market, New Garden Town, Lahore. Sky Rocketing Oil Prices—a 'Stealth Threat' 13 Tel : Ph: 042-35838111, 35866896 to Shipping Industry Fax : 042-35886948 E-mail : [email protected] Role of the Forensic Accountant/Auditor (FA) 14 in the prevention and detection of business fraud Faisalabad Office: How to Cope with Pressure to Lower Fees 16 Ajmal Centre -1, 289-1, Human Resource Accounting 18 Batala Colony, Faisalabad Tel : 041-8500791, 041-8530110 E-mail : [email protected]

News Updates: Islamabad Office: IFAC News 19 14-K, Firdous Plaza, F-8 Markaz, SECP News 20 Islamabad Tel : 051-2851572 SBP News 21 E-mail : [email protected] FBR News 21 Publication Committee: Career Enhancement Tips For First Jobbers 22 Mr. Jawed Mansha Chairman PIPFA News 23 Mr. Shahzad Ahmad Awan Member Mr. Zia ur Rehman Member PIPFA Seminars 24 Mr. Adnan Zaman Member Why PIPFA? PIPFA’s Membership entails many advantages like: Salient features of PIPFA Qualifications: Entitlement to use Designatory letters APFA or FPFA and distinction of membership. On qualifying Final Level, one may apply for Continuing Professional Development through publications, seminars, workshops etc. the management level jobs like Financial Advisor / Financial Officer. Eligibility for Chief Financial Officer or Company Secretary of listed company. Elevation in Auditor General of Pakistan for Entitlement for qualification pay etc. to PIPFA Public Sector Qualified. BPS -17 is possible after qualifying PIPFA. Opportunities to inter-act at the national level with elite accounting community. Students may join audit firms as Audit Trainee Exemptions in examination of ICAP, ICMAP, CIMA-UK, ACCA etc. or internship in Financial Institutes/ Professional activities like election of representatives etc. Organizations. We are aslo pursuing Higher Education Commission of Pakistan to grant PIPFA qualified / member equal to B.Com Graduate. Dealing also with Federal Broad of Revenue (FBR), Pakistan to allow PIPFA members for Tax Practicing. VIEWS EXPRESSED HERE DO NOT NECESSARILY REPRESENT THE OFFICIAL POLICY OF THE INSTITUTE Pakistan Institute of Public Finance Accountants

BOARD OF GOVERNORS STANDING COMMITTEES EXECUTIVE COMMITTEE Dr. Syed Turab Hyder Chairman Mr. Shahzad Ahmad Awan Member Mr. Rafaqatullah Babar Member Mian Muhammad Shoaib Member

Dr. Syed Turab Hyder Mr. Shahzad Ahmad Awan Mr. Rafaqatullah Babar BOARD OF STUDIES President Vice President Secretary (Nominee of AGP) (Nominee of ICMAP) (Nominee of ICAP) Mr. Zia Ur Rehman Chairman Mr. Rashid Rahman Mir Member Mr. Rafaqatullah Babar Member Mr. Adnan Zaman Member Mr. Sajjad Ahmad Member Mr. Jawed Mansha Member

EXAMINATION COMMITTEE Mian Muhammad Shoaib Mr. Sajid Hussain Mr. Adnan Zaman Mr. Shahzad Ahmad Awan Chairman Treasurer / Joint Secretary Member Member (Elected) (Elected) (Nominee of ICAP) Mr. Rashid Rahman Mir Member Mr. Muhammad Sharif Member Mr. Adnan Zaman Member Mr. Rafaqatullah Babar Member Mr. Jawed Mansha Member REGULATION AND DISCIPLINARY COMMITTEE Mr. Sajjad Ahmad Mr. Muhammad Sharif Mr. Rashid Rahman Mir Member Member Member Mr. Shahzad Ahmad Awan Chairman (Nominee of ICMAP) (Nominee of ICAP) (Elected) Mian Muhammad Shoaib Member Mr. Rafaqatullah Babar Member

PUBLICATION AND SEMINAR COMMITTEE Mr. Jawed Mansha Chairman Mr. Shahzad Ahmad Awan Member Mr. Muhammad Ashraf Sheikh Mr. Zia ur Rehman Mr. Jawed Mansha Mr. Zia ur Rehman Member Member Member Member (Nominee of AGP) (Nominee of AGP) (Nominee of ICMAP) Mr. Adnan Zaman Member PIPFA Journal

President Message

It is great honor and privilege for me being President PIPFA to present the Institute’s Journal Volume 8. Our Vision is to develop the human resource of public and private sectors in the professional regimes of public finance, accounting, auditing and financial management. Professionally equipped and skilled manpower is the key to professional capacity and success of any organization. Unless and until the working force has reasonable knowledge of core professional concepts, ideas and techniques, they cannot perform their duties towards attainment of organizational objectives.

In the present age, financial management, accounting and auditing are the critical tools for effective management, governance and accountability. Furthermore the information technology systems and computer based accounting and auditing techniques are also relevant in the IT age. PIPFA has been making efforts over the last many years to impart knowledge in these areas for the public and private sector employees of a certain level. To keep trainees abreast with modern needs, we have been revising, improving and updating the courses and syllabi so that they get latest concepts and skills.

The above said efforts would not have been successful without active support of Board of Governors, members of the Institute, faculty, and students. The members of the Board of Governors, with their vast knowledge and experience, have been helpful in institutional development and progress of the Institute. I am thankful to all for their support and trust, and urge all to work for further improvement in standards of syllabi, teaching, examination and the overall systems. I hope that all of us would continue to work tirelessly for professional development in the areas of public finance in the years ahead.

Dr. Syed Turab Hyder

5 PIPFA Journal

Chairman Publication’s Committee Message With tremendous pleasure and great honor, I present volume 8 of PIPFA Journal. This Journal would indeed prove to be a great source of harmonious and enthusiastic interaction amongst PIPFA community comprising its members and students. The Journal is dedicated to promoting and publishing research on accounting education issues and to improving the quality of accounting education all over Pakistan. The Journal does provide a vehicle for making results of empirical studies available to educators and for exchanging ideas and instructional resources that help improve accounting education. The journal publishes material related to the business topics with its primary mission of seeking to enhance the educational base of accounting practice. Let me give you my input about oil prices. I think oil prices may get a boost from a brightening global economic outlook. The eurozone economy would recover later in 2013 and there are already signs of stabilisation. China's export and import growth rebounded more strongly than expected in December, suggesting a rebound in economic activity and early signs of an increase in global demand for its goods. The good news are that Saudi Arabia, the top producer of the Organisation of Petroleum Exporting Countries (OPEC), favours an oil price of about $100 a barrel and output from North America would grow rapidly over next two years bringing about ease in cost of doing business. I have experienced that whistleblowers frequently face reprisal, sometimes at the hands of the organization or group which they have accused, sometimes from related organizations, and sometimes under law. Questions about the legitimacy of whistle blowing, the moral responsibility of whistle blowing, and the appraisal of the institutions of whistle blowing are part of the field of political ethics which must be looked at before going for any decision. One of the primary roles of the Board Members of an education institution is to foster excellence in teaching, learning, scholarship and research. It is a role that we take very seriously here at PIPFA, and one that determines the nature of the oversight given to the PIPFA programmes and academic activities. Let me appreciate the meritorious work done by PIPFA Journal Team, members and students to make this publication a success. All comments, views and suggestions would always be welcome to make it more valuable and meaningful and to perform PIPFA functions as per its Mission Statement i.e. “Identification, development and imparting knowledge to provide a structure for the training of accounting professionals in the specialized areas”.

Jawed Mansha

6 Articles PIPFA Journal WHISTLE BLOWING — AN INSIDE BARK By: Shabbir Ahmed Pasha-APFA Introduction • Chambers Dictionary: Giving because every business and every public information (usually to the body faces the risk of things going wrong We live in a complex world, the evidence authorities) about illegal or or of unknowingly harboring a corrupt is that our world is full of humans. Every underhand practices. individual. Where such a risk arises, day, decisions are made that can affect our • US, Brewers Dictionary: Exposing usually the first people to realize or suspect health, safety, economic and human rights. the wrongdoing will be those who work Some of these decisions are made for the to the press a malpractice or cover- up in a business or government in or with the organisation. Yet these worst reasons. They are made by the people, who are best placed to sound the corrupt, the incompetent or the lazy. (origins) Police officer summoning public help to apprehend a criminal; alarm or blow the whistle, also have most Accidents happen or corruption flourishes to lose if they do. because employees who know about referee stopping play after a foul wrongdoing are afraid to say anything in in football. "There are obvious tensions, public and fear of losing their jobs. Here actually we are talking about an private, between the legitimate interest in effective system in place that allows ways the confidentiality of the employer's affairs The Objectives: of disclosure by any person of any and in the exposure of wrong. The The objective of the paper in your hands information about misconduct, corruption, enactment, implementation and is to consider how far we have advanced misuse of powers, misappropriations or application of the "whistleblowing" towards the consciousness of a significant illegal activity etc. which may leads towards measures and the need for properly ethos of revelation. The consciousness of some sort of protection as well as some thought out policies in the workplace, a significant ethos of revelation requires kind on incentives to the whistle blower have over the last three years, received an empowering whistleblowing legal in order to promote accountability. considerable publicity from various quarters, including the valuable activities framework, meaningful implementation There are few countries in the world which and enforcement within all organisations of an independent charity, Public Concern have adopted Whistle Blowing National at Work, established in 1993 and especially in the Public Sector Entities, Laws a few are as under: bringing up the practices and protections experienced in providing assistance to provided in terms of the laws essentially • US - Whistleblower Protection Act both employers and employees." and as well as the social culture which • UK - Public Interest Disclosure Lord Justice Mummery - giving the yield respect to the whistleblower. Act judgment of the Court of Appeal - in its f irst Before getting in depth in it let us clear • Canada - Public Servants consideration of the Public Interest in our mind that what actually is Whistle Disclosure Act Disclosure Act. (ALM Medical Service v Bladon (2002) IRLR 807) Blowing? • Japan - Whistleblower Disclosure • US academics – Marcia P. : Act of Act The dilemma disclosure of illegal activities. • New Zealand - Protected In practical terms, if someone is concerned • UK academics –Guy Dehn: Act of Disclosures Act about corruption or serious wrongdoing disclosure to reduce and remove • Romania - Act on the Protection in or by an organisation, they have three risks. of Whistleblowers options. These are • Australian academics–– Peter Jubb: We also have following United Nations • To stay silent. Act of disclosure to rectify a International Instrument on Whistle • To blow the whistle internally or wrongdoing. Blowing: with the responsible person. • Oxford English Dictionary: • Convention against corruption in • To blow the whistle outside to the Bringing an activity to a sharp 2003 authorities or the media. conclusion as if by the blast of a whistle. • Convention against corruption in Silence 2005 • UK Committee on Standards in Silence is the option of least risk both for • 140 countries have signed for, as Public Life: Raising a concern the individual worker and for a responsible of 2011 about malpractice within an firm which comes across corruption. It organisation or through an Whistleblowing is relevant to all will be attractive for many reasons. The independent structure associated organisations and all people, not just those whistleblower will realise that his or her with it. few who are corrupt or criminal. This is facts could be mistaken or that there may 7 Articles PIPFA Journal be an innocent explanation. Where expression and fair labour practices; and and accepted option. colleagues or competitors are also aware on the other hand there is the organisation The main beneficiaries of a culture which of the suspect conduct but stay silent, the against which an allegation is made which disapproves of, and penalises, people who whistleblower will wonder why he or she has rights to a reputation and to loyalty blow the whistle in good faith are those should speak out. In organisations where from staff. few corrupt firms and individuals. labour relations are adversarial and in The aims of a whistleblowing Knowing that the alarm will not be cultures where corruption is common, the sounded, they are confident that their whistleblower is likely to assume that he culture wrongdoing (especially if it is corruption or she will be expected to prove that the The primary aim of a whistleblowing or bribery) will go undetected and corrupt practice is occurring, rather than culture is that concerns about corruption unpunished. (In any case, when the see those in authority investigate and deal and wrongdoing should be properly raised successful investigation and prosecution with the matter. Even though he or she and addressed in the workplace or with of criminal activity outside of the has no control over it, the whistleblower the person responsible. Crucially, it sees workplace depends overwhelmingly on may feel responsibility for any action that the whistleblower as a witness, not as a the information the police receives, it is may be taken against the wrongdoer. complainant. Where communication not clear why the communication of Finally, unless the whistleblower believes channels in organisations are designed for information about wrongdoing in there is a good chance that something will grievances and complaints, that is how organisations is generally assumed to be be done to address the wrongdoing, it is almost inevitable that he or she will stay silent. Foul! Even if he or she thinks the alarm should Tip Management review Fraud cases detected in private companies 34 15 be sounded, the whistleblower will want by method, %* to consider his or her private interests External audit before taking action. Without reassurance 5 to the contrary, the whistleblower will fear reprisals be it harassment or dismissal. The whistleblower may also suspect (rightly or wrongly) that the corruption Other involves, implicates or is condoned by 7 more senior people in or outside the organisation, in which case he or she will Document examination fear the matter will be covered up. Even 8 where these obstacles are overcome or Account reconciliation reduced, the whistleblower will fear that 8 By accident 11 Internal audit he or she will be labelled as disloyal by 12 the generality of colleagues whose respect and trust the whistleblower may want or need in future. they are used by the workforce. In the undesirable.) Quite apart from people The results of this culture of silence are context of concerns about abuse, it is with a predisposed criminal intent, the that: important to bear in mind that malicious current culture adversely affects the and aggrieved people do already make conduct of the great majority of people. • responsible employers are denied damaging disclosures when there is not For them the strongest deterrent is the the opportunity to protect their any recognised whistleblowing scheme. fear of being caught and the shame and interests; Recognising this a whistleblowing culture embarrassment that goes with it. Where • unscrupulous competitors, should be concerned with the silent a culture of secrecy and silence exists, managers or workers are given majority who think it is not in their otherwise reasonable people may be reason to believe that ‘anything interests to blow the whistle on corruption tempted to engage in malpractice because goes’; or serious wrongdoing. Drawing on the they believe they will not be caught. • society focuses more on theory of efficient markets (that Equally if such a culture exists in a society, compensation and punishment competitive forces begin to operate once then otherwise responsible organisations than on prevention and deterrence. one quarter of consumers will consider may feel they will be at a competitive switching suppliers), a whistleblowing disadvantage if they do not also pay bribes Problems in whistleblowing scheme will help organisations and or engage in illegal practices. Whistleblowing always involves two societies deter corruption and wrongdoing Blowing the whistle internally parties with opposing rights and interests; where a significant minority of those who on the one hand there is the whistleblower now stay silent can be encouraged to see the approach many organisations now take who has a right to equality, freedom of internal whistleblowing as a viable, safe to information from workers is similar to 8 Articles PIPFA Journal the attitude taken toward consumers thirty bribes. If they feel unwilling or unable • Outline the need for years ago (that they were troublesome, to blow the whistle internally, the only accountability untrustworthy complainants). This is a options they will have are to blow the • Outline reporting mechanisms mistake since not only is information whistle outside, or to stay silent. from the workforce readily accessible • Outline the owners of the process and free to collect, but it enables the Wind of Change • Outline the authority of these organisation to put a potential problem There is growing acceptance to owners right before it causes any real Essential 2 - Create Case damage to it, its reputation or its Management Framework stakeholders. The self-interest of the organisation in whistleblowing • Outline incidents criteria is now being recognised and • Outline incidents level recently a few large firms have • Outline incident response teams begun to use outside advice lines to encourage and reassure staff to • Outline investigative process raise concerns about wrongdoing. • Outline evidence retention These developments have been timeline given added impetus particularly Essential 3 - Create a dedicated in the USA - by legal requirements department to demonstrate due diligence, where safety, competition, finance and • Legal experience certain criminal laws have been • Forensics Accounting experience breached. whistleblowing. With the changing • IT Forensics experience Organisations are now beginning to nature of employment, globalisation and • Fraud experience realise the importance of providing an the increased flow of information, there alternative to (but not a substitute for) is also a recognition that the traditional Essential 4 - Get endorsements from line management, since without it their approach of trust and confidentiality in the top managers will have a monopolistic the workplace cannot be relied upon to Essential 5 - Get endorsements from control over the information which goes operate as it did through much of the Clients to those higher up. As with any 20th century. While trust and confidence monopoly, one weak link - be it a is of critical importance in any Essential 6 - Awareness, Awareness, corrupt, lazy, sick or incompetent person community or organisation, to be Awareness! effective it cannot be blind or will break the communication chain and • The policy stop those in charge receiving unquestioning. Whistleblowing cultures information which could be critical to which emphasise internal reporting are • Anti-fraud culture the organisation. a means by which the abuse of trust and • The department confidence can be checked and by which Blowing the whistle outside asymmetrical accountabilities of those Essential 7 - Investigate and Take Action If, however, it is not safe and accepted within the workplace can be understood for people to blow the whistle internally, and developed. If the organisation is • Investigate incidents reported then we need to turn to the options prepared to promote and implement • Take action on the incidents which exist for those people who such a culture, any risk of it being reported consider some action is warranted when hijacked by petty campaigns will be they come across corruption. Without minimised, if not removed. Essential 8 - Protect the Whistle a safe internal route, the only option is Whistleblowing as a means to deter Blower for them to disclose the matter outside wrongdoing, promote transparency and Essential 9 - Reward the Whistle - be it to the authorities or more widely. good governance, underpin self- Blower This is an increasingly important matter regulation and maintain public since the opportunities for such wider confidence. It is the approach which Essential 10 - Encourage disclosure particularly to the media and has been put on a legislative footing in anonymity- Assess and evaluate the public interest groups are likely to be the UK and in South Africa in recent system increased with new technology. A years. • Is it working relevant example to consider in the • Is it yielding the intended results context of any anti-corruption measure ESSENTIALS • Are employees comfortable using is where a worker or an audit firm Essential 1 - Create an Anti-Fraud it discovers, or reasonably believes, that Policy account books or entries may conceal • Are employees using it • Outline an anti-fraud culture 9 Articles PIPFA Journal

A whistleblowing culture cannot ones. The practical consequences of Recommendations succeed without a strong and clear this provision will be that an signal from the very top of the organisation with a whistleblowing 1. There is a need to develop a organisation that it is against corruption culture will be able to demonstrate that consolidated and consistent and is resolved to go about its business it is fit to regulate itself. Furthermore, whistleblowing framework that lawfully. Such a culture will provide it will itself be well placed to notify the provides equal protection to all assurances against reprisals for authorities of any proven wrongdoing whistleblowers and which whistleblowing on wrongdoing. These a whistleblower has raised with it. imposes the same effective duties will apply even where the whistleblower on organisations, in both the If such a culture is to maintain the public and private domains, to is mistaken, provided he or she acted confidence of the wider community, honestly and reasonably. In terms of promote a culture of disclosure any scheme must also address the that protects whistleblowers. disclosures, such a culture will direct particular circumstances in which a the worker toward seeking impartial wider disclosure may be justified. 2. The law must be made advice (be it from unions, lawyers, Essentially this should be an option of comprehensive in the provision professional bodies or a designated last resort and, where reasonable, would of an expanded scope of ethics service) and/or to blowing the include a disclosure to the media. An protection. whistle internally or with the example of such circumstances would 3. It must draw all potential person responsible. This will help be a flagrant cover-up or the failure by whistleblowersinto its protective ensure that even if the whistleblower the authorities to deal effectively with field and allow disclosures to any is mistaken, no unwarranted damage is a serious issue such as the sexual abuse person or agency that is able to done to the organisation or to of children in a care home or the do something about the individuals within it. Critically it payment of bribes to a senior official allegation concerned. provides a safe and viable alternative or politician. One way forward is to 4. Organisations may be via Audit to silence. introduce a carefully weighted four- Committees must be compelled To be effective, such a system will also step structure: and/or encouraged to proactively provide that where there is good evidence 1. Impartial advice; promote a culture of disclosure, to support the concern, whistleblowing to 2. Internal whistleblowing; adopt more appropriate and a designated authority will be protected. expansive interpretations of the This will greatly encourage the 3. Whistleblowing to authorised whistle blowing related organisation to reassure the whistleblower independent agencies; guidelines, and to be more pro- that the matter can safely be raised 4. Wider whistleblowing (where active and attentive to effective internally. One recent example appropriate to the police, victims, implementation of obligations demonstrates the value of such a provision. shareholders, politicians or the and protections provided by the When an international bank “road-tested” media). guidelines at least until it got a new global corporate compliance culture Such a structure should also influence legislative cover/security. ethic, employees in all cultures said that the actions of a malicious person as he they did not believe the assurances that or she will for the first time have reason they would be protected. The bank then not to go direct to the media. Where introduced new whistleblowing References he or she does, society will have good mechanisms and declared they would • WHISTLEBLOWING & INTEGRITY: reason to expect the media to look into a new perspective (Guy Dehn, Director, rather concerns were raised with regulators his or her motives and bona fides. Public Concern at Work) than left unreported. • UK Committee on Standards in Public Such a clear provision will also Five Factors to Success Life, Second Report, May 1996, page 22. encourage managers to be receptive to 1. Protection • Asia Week 19/11/99 – commented that concerns about corruption and to deal Japanese culture deprecates whistleblowing with them properly. As importantly it 2. Reward yet seems to condone the resignation or even 3. Taking Action suicide of top executives when unchecked will reassure those in charge that wrongdoing leads to major disaster. managers will address the matter 4. Showing Action • The Committee of Independent Experts, properly. It will give a clear indication 5. Confidentiality Second Report, para 7.6.9. to the authorities that the organisation • Lord Nolan, who had also chaired the is seeking to operate responsibly and Let’s Agree Committee on Standards in Public Life. this will influence the conduct of any • That Fraud is here to stay • See note 9 supra, para 7.6.10. The investigation that may prove necessary European Commission’s proposals were (whether prompted by a whistleblower • That we need whistleblowers published in Feb 2000. or not). It will also enable the • That we need whistle blowing • See OECD Labour/Management authorities to readily distinguish Programme – PAC/AFF/LMP(2000)1. system This Paper is a revised version of the reputable organisations from reckless discussion paper set out in that report. 10 Articles PIPFA Journal Resolving the complex revenue recognition issues in the development companies and construction of real estate By: Dev Anand - APFA Background IFRIC 15 requires components accounting. is dependent upon the nature of the sale agreement: A real estate development company is the IFRIC 15 mainly distinguishes two areas company which facilitates by providing a which have given rise to divergence in • If the development company provides platform and basic infrastructure facilities practice: construction materials along with services to other companies in construction. (i) whether, the transaction is a sale of in order to perform its contractual goods or a provision of a service, and obligation, the said agreement is an The basic problem arises whether the agreement for the sale of goods and developer is selling a product e.g. sale of (ii) timing of the revenue recognition revenue is recognized in accordance with factory or building or is selling a service i.e. where the transaction is considered paragraph 14 of IAS 18 which elaborates a construction service as a contractor engaged to be a sale of goods. five criteria for the revenue recognition by the buyer. Revenue from selling products Construction contracts are under the scope for sales of goods. In simple words, revenue is normally recognized at delivery. Revenue of IAS 11 'Construction Contracts'. is recognized when risk and rewards are from selling services is normally recognized Construction contract can be defined as the transferred to the buyer without any on a percentage of completion basis as work done on a specifically negotiated further involvement of seller. construction progresses. contract for the construction of an asset or • If developing company does not supply IFRIC 15 'Agreements for the Construction combination of assets. In accordance with construction materials, i.e. the agreement of Real Estate' is an Interpretation defined IAS 11, revenue arising from construction for the rendering of services. Revenue for guidance on the accounting for the is recognized based on the percentage of would be recognized in accordance with construction of real estate, and specifically completion method. IAS 18 paragraph 20, using the stage of where the contractor generates revenue from On contrary the sale of a good or the completion method. the construction project prior to the rendering of a service do not within the completion date. scope of IAS 11 and are accounted within Separation point-construction, Accounting treatment for the construction the scope of IAS 18 'Revenue'. Sale of goods goods or services, and when to of real estate depends upon the substance may be treated as the converse to a of the agreement. IFRIC 15 defines the construction service, i.e. the sale of non- recognize income accounting for revenue for development tailored asset; but ultimately is all contracts IFRIC 15 states that where the buyer is able companies that undertake construction of that do not fall within the scope of IAS 11. to specify the major structural elements of real estate directly or through subcontractors, Accounting treatment of revenue recognition the design of the real estate before

Can component other than construction i.e. Sales of goods or rendering of services be distinguished?

Separate construction and Component of sales of good component construction and related or rendering of No services No Yes Yes For sales of goods and Does agreement meet Yes Agreement within Yes Revenue recognized by rendering of services recognize definition of scope of IAS 11 stage of completion revenue as per IAS 18. construction contract? method No Is agreement only for Yes Rendering of services is Yes Revenue and cost are rendering of services? within scope of IAS 18? recognized with stage of completion method No Agreement is for sales Yes Criteria of paragraph 14 of IAS No Revenue and cost are of goods under IAS 18 18 for sales of goods is met on recognized with stage continuous basis of completion method

Yes Revenue is recognized as criteria of IAS 18 is fulfilled 11 Articles PIPFA Journal

construction begins and/or specify major • Rendering of maintenance services Rs. 80 million (400 million X 20%). structural changes once construction is in would be recognized under paragraph However, for practical purpose, when services progress, then the contract would be 20 of IAS 18. Thus recognition of are performed by an indeterminate number considered to be specifically negotiated, and Rs. 1 million/unit after fulfilling four of acts over as specified period of time, revenue would hence fall within the scope of IAS conditions in paragraph 20. is recognized on a straight line basis over the 11. However, any minor improvements are • The sale of the infrastructure specified period unless there is evidence that not considered to be treated under IAS 11. development. Here IFRIC 15, some other method better represents stage For example: minor change in location of clearly distinguish whether the of completion. When a specific act is much parking area. agreement is under IAS 11 or under more significant than any other acts, the A detailed example IAS 18 and if under IAS 18 whether recognition of revenue is postponed until that it is sale of goods or rendering of significant act is executed. For example, terms ABC Ltd. is a development company. Total services. of payment receipt from buyer are: 1st development price is Rs. 1 billion (Rs. 600 If the buyer is able (does not matter if buyer installment at signing of application, 2nd million for materials and Rs. 400 million installment on transfer of land possession for services) exclusive of land price which is exercise or not the ability) to specify the major structural elements of the design of the real and provided with infrastructure facility to Rs. 10 million for each unit. Maintenance the buyer who can construct his factory and service of Rs. 1 million each unit is provided. estate before construction begins and/or specify major structural changes once final installment at complete construction of Scenario 1: construction is in progress, then the contract factory buildings by respective buyer. Thus revenue can be postpone till the 2nd ABC Ltd. sells land for the construction of would be considered to be specifically installment which is a significant act (when industry comprising of many factories. Sale negotiated, and would hence fall within the risk and rewards are transferred and seller is simply sales of goods under paragraph 14 scope of IAS 11. Here buyer usually engages does not have managerial involvement). of IAS 18. Thus revenue of Rs. 10 million the company for construction. For example, Assuming stage completion is 50% thus / unit is recognized for every unit sold. buyer asks for the separate wide-road facility along with power from alternative energy revenue of Rs. 200 million (400 million X Scenario 2: source for his factory, which is not readily 50%) will be recognized starting at 2nd If ABC Ltd not only sale the land but also included in the master plan for the installment time and remaining over final provides maintenance services to the industry. construction of industry infrastructure for all payment time using stage of completion In this case two different types of sales the factories. Thus Revenue of Rs. 1 billion method. component are involved i.e. the sale of land will be recognized as per stage of completion Implications of IFRIC 15 and rendering of maintenance services. method under IAS 11 with progress of IFRIC 15 was developed in order to facilitate development. • Sale of the land would be recognized the development companies as well as real under IAS 18, as the land would be In absence of such ability where buyer is not estate companies that otherwise have transferred at one time. Hence, the able to specify major structural changes at his recognized their income either in accordance revenue would be recognized at the own will the contract will fall under the scope with the wrong accounting standard, or have time of transfer of the land. Revenue of IAS 18. recognized too much in advance. is recognized as in scenario 1. Under IAS 18, there are again two options: This Interpretation allows companies to • The rendering of maintenance 1. Whether this is falls under sale of goods, review all active contracts to determine: services would be recognized under or (a) Whether it meets the recognition criteria paragraph 20 of IAS 18. Thus in IAS 11, or if the contract would now recognition of Rs. 1 million/unit after 2. Under the sale of service. falls within the scope of IAS 18, fulfilling four conditions in paragraph If developing company provides infrastructure 20. material along with the development services (b) at what point risks and rewards are for developing industrial structure, the scope transferred to the buyer, and Scenario 3: is under the sales of goods and revenue will (c) if any of the components of the contract ABC Ltd sells land along with the be recognized as per paragraph 14 of IAS are delivered after the others, which may infrastructure development (road, 18. For example, developing company provides result in an element of revenue being electricity, water, gas etc.) to the industry concrete, steel, coal tar and all other materials deferred. as well as maintenance services. Here are necessary for construction of main road and three different sales components i.e. the access roads to all the factories spotted Conclusion sale of land, rendering of maintenance locations. Thus revenue of Rs. 1 billion should In order to resolve the complex environment services and the sale of the infrastructure be recognized to the extent of each completed of development companies and real estate development. unit sold. companies for revenue recognition, IFIRC • The sale of the land would be In any other case of selling of services, revenue 15 is designed. IFRIC 15 allows not only to recognized under IAS 18, as the land is recognized as per paragraph 20 of IAS 18. ensure that accrual concept of accounting is would be transferred at time. Hence, Stage of completion method is used to record followed but also considers substance over the revenue would be recognized at the service revenue over the period of time. form concept, this interpretation properly the time of transfer of the land. Revenue For example 20 % of stage is completed thus guides a user to recognize revenue at what is recognized as in scenario 1. revenue should be recognized to extent of stage and to what extent either under IAS 12 11 or IAS 18. Articles PIPFA Journal Sky Rocketing Oil Prices—a 'Stealth Threat'

to Shipping Industry By: Shenila Shallwani - APFA The extraordinary rise in oil prices has an world on oil, that the hike in its price standards that the International Maritime indelible impact on many industries. Being triggers an all-round increase in prices of Organization has recently agreed for new an activity that depends greatly on oil, many goods, materials and services. engine standards and new fuel standards. shipping has not escaped this Fuel cost represents as much as 60% of However, the cost of low sulfur fuels to development. total ship operating cost. Such an increase be used in Emission Control Areas will Shipping is a crucial facilitator of much cannot be taken lightly. Adding more roughly double the cost of bunker fuel, of the world's trade; hence, the rising cost vessels, steaming or sailing at lower speed, thus creating even more upward operating of shipping as a result of the rise in oil reconfiguring their routes and focusing cost pressures going forward. prices is naturally a matter of great concern on fuel-saving measures via incorporating It is important to recognize that ocean to the industry and beyond. technology, increasing the maintenance shipping is the most energy efficient form Shipping companies are decidedly edgy of their ships and increasing surcharge of freight transportation. Recent estimate to market trends, particularly rising crude and bunker adjustment factor (BAF) are shows that moving goods by ocean prices point to a more challenging year in such solutions that shipping companies container can be 17 times more fuel 2012. Overcapacity across all shipping are now using to cope with the raise in efficient than transporting the same goods segments has put pressure on freight rates, bunker fuel prices to save their costs. by air and 10 times more efficient than with this being further compounded by How carriers seek to obtain recovery of transporting the goods by road. However, the relentless rise in bunker prices since these rapidly rising fuel costs in the current increase in International fuel prices is the beginning of 2011. market is a matter for commercial affecting the current variable service cost of shipping industry. The Economist Rubin & Benjamin, negotiations, but the significance, argued that “the cost of moving goods, magnitude and the consequences of the So even if we go pass this cyclical problem not the cost of tariffs, is the largest barrier challenge continue to grow. with the recovery of the global economy, to global trade today” The slow steaming approach adopted by there is limited chance of the freight rates moving up because of the overhang in the Shipping companies are facing volatile shipping lines to reduce bunker consumption is good news for supply of shipping capacity. “This can be situation with regards to the high bunker fuel very structurally damaging for the shipping costs, lower demand for shipping services, environmentalists as lower average speed of vessels reduces emissions by the industry because several shipping lines are depressed freight rates as well as more already trying to keep their heads above seriously, declining asset values of ships,” shipping sector. High oil prices on the other hand may even provide greater waters and counting on the upturn in the The bunker fuel prices have risen steadily impetus for greater technological freight market, which may be elusive, from a range around US$500 per MT in Improvements of ship performance and given the current situation,” late 2010 to early 2011 to above US$700 encourage the use of alternative energy Surviving under the current situation is per MT and are now hovering around such as gas and biofuels. going to prove very difficult to many US$600 per MT in 2012. Bunker prices The World Shipping Council has fully shipping lines and it is important that the are not expected to ease well into middle Government takes some initiatives to of next year and higher bunker prices supported the efforts of the U.S. and other governments to establish new introduce some supportive measures to would eat into any improvements in help the industry. “Given the fact that freight earnings. environmental standards for shipping is the lifeline of our trade “Shipping companies are being backed vessel air dependent economy, it is important to into a corner by rising input costs and address the concerns of the industry falling freight rates,” moving even to ensure that growth of trade is larger shipping companies towards not jeopardized,” operating losses” The spike in bunker prices has “drastically eroded” the already slim profits experienced by shipping companies, which were already saddled with the rise of other costs. They are already paying more for vessel purchase, for onboard equipment, and for repair & maintenance of their fleet. All these add pressure to the operating costs of shipping companies. emissions, and Such is the dependency of the business supports the new 13 Articles PIPFA Journal Role of the Forensic Accountant/Auditor (FA) in the prevention and detection of business fraud By: Majid Latif Bhatti, PIPFA Student Forensic refers to something pertaining to or and business valuation. uncover the facts. used in a court of law. However, in practice, These investigations occur in contexts such As many damage calculations require forensic typically refers to the method of as civil litigation, alternative dispute resolution, construction of a theoretic reality “but for the obtaining evidence related to any investigation, insurance claim adjustment, internal fraud event,” the team must also be adept at working not just a crime or legal matter. In the latter investigation, securities class action and through the facts and a hypothetical situation context, the forensic financial expert internal corporate investigations. The as if no damage event occurred.The investigates and analyzes financial evidence questions posed to the forensic financial expert complexity of the financial issues posed in with the goal to provide expert testimony on are increasingly more complex, requiring skill litigation and forensic investigations requires financial damages for parties in litigation. sets beyond a typical understanding of a very broad, multidisciplinary approach to The definition of forensic accounting is financial records and Generally Accepted the investigative and damage calculation changing in response to the growing needs Accounting Principles (GAAP). phases of the legal process. of corporations. Bologna and Lindquist (in Fraud Auditing and Forensic Accounting, Knowledge of forensic accounting is only The new professional field of financial 1995) defined forensic accounting as “the part of the equation. More often, a team of forensics and the variety of experts that fill application of financial skills, and an forensic financial specialists with a variety of this bill provide corporations and attorneys investigative mentality to unresolved issues, skill sets is needed to address the many with the tools required to respond to complex conducted within the context of rules of challenges posed by a case. For example, the litigation and dispute resolution. evidence. logistics of finding data in numerous locations Types of fraudulent acts such as tape drives, personal computers and As a discipline, it encompasses financial BlackBerry wireless devices require forensic Fraud can be committed through many expertise, fraud knowledge and a sound technology specialists who are familiar with media, including mail, wire, phone, and the knowledge and understanding of business electronic data systems and who can identify Internet (computer crime and Internet fraud). reality and the working of the legal system.” and ferret through electronic storage devices The international dimensions of the web and This implies that the forensic accountant to find case critical documents. ease with which users can hide their location, should be skilled not only in financial the difficulty of checking identity and An allegation of market manipulation often accounting, but also in internal control systems, legitimacy online, and the simplicity with requires an understanding of economics, the law, other institutional requirements, which hackers can divert browsers to dishonest finance and how financial investment firms investigative proficiency, and interpersonal sites and steal credit card details have all operate to fully document issues of causation skills. contributed to the very rapid growth of and actual loss sustained. Permanent Internet fraud. Corporations can rely on these skills for impairment of a company’s value due to an developing a consistent system of corporate alleged act will necessitate the use of accepted Types of criminal fraud include: governance, disseminating such information valuation skills. • Advance-fee fraud within and outside the company, ensuring that governance policies and objectives are This complexity has created a need for a • Bait and switch multidisciplinary profession of “Financial interwoven into the internal control system, • Bank fraud to obtain money, assets, or Forensic Experts” who are proficient in setting up fraud prevention systems, and other property owned or investigating any existing fraud. accounting, finance, economics, computer technology, statistics, valuation and legal Held by a financial institution The role of the forensic accountant has processes. Specific industry expertise is also • Bankruptcy fraud expanded significantly during the last several an important element in the equation, making • Benefit fraud, committing fraud to get years for many reasons, including the this team a group of highly-specialized experts government benefits requirement for greater scrutiny on corporate indeed. governance brought about by the Sarbanes- • Counterfeiting of currency, documents The investigative forensic team rarely has Oxley legislation and the widespread or valuable goods recognition of the risks and prevalence of access to all of the relevant information related • Charlatanism financial fraud in today’s business to a case. Therefore the ability of the team to environment. respond with absolute certainty is not always • Confidence tricks such as the 419 fraud possible. Manipulation of records, destruction and Spanish Prisoner As a result, forensic financial specialists are of evidence, time limitations on completing • Creation of false companies or "long usually retained to support special the investigation and restrictions imposed by firms" investigations related to a broad range of the litigation investigative process by the subjects. This can include the financial impact parties involved are some of the reasons that • Embezzlement, taking money which of marketplace events, such as intellectual certain data cannot be found. With this in one has been entrusted property infringement and anti-trust actions, mind, the forensic team must utilize a number with on behalf of another party financial reporting fraud, asset impairment of skills and techniques to reconstruct or • False advertising 14 Articles PIPFA Journal

• False billing because of some false information that B gave of a payment for an illegal act, a Forensic • False insurance claims to A. For example, if John tells his mother Accountant (FA) may take the lead on that that he is taking a college course on aspect of the case. • Forgery of documents or signatures, handwriting analysis, and for his homework, In rarer situations, a Forensic Accountant • Franchise fraud where the real profit is he needs her to read and sign a pretend deed. (FA) may be asked to help determine whether earned, not by the sale of the product, If Mom signs the deed believing what he or not a suspect is under financial pressure, but by the sale of new franchise licenses. told her, and John tries to enforce the deed, which can be part of a legal strategy when • Fraud upon the court Mom can plead "fraud in the factum." showing adequate motivation for a crime. In • Health fraud, for example selling of Fraud in the inducement is an equitable these kinds of cases, a Forensic Accountant products known not to be effective, such defense, and occurs when A signs a contract, (FA) may be called as an expert witness to as quack medicines, knowing that it is a contract and (at least interpret and explain data before a jury. having a rough idea) what the contract is Forensic Accounting at a Federal Level • Identity theft about, but the reason A signed the contract Forensic Accountants (FAs) working for the • Impersonation was because of some false information that federal government may be tasked with even • Impostery B gave to A. For example, if John tells his greater responsibility, and more complex mother to sign a deed giving him her property, projects, than those serving in other private • Insurance fraud Mom refuses at first, then John explains that or public arenas. • Investment frauds, such as Ponzi the deed will be kept in a safe deposit box According to spokespeople at the Federal schemes and Pyramid schemes until she dies. If Mom signs the deed because Investigation Agency (FIA), Forensic • Marriage fraud to obtain immigration of this statement from John, and John tries Accounting is a key part of the FIA‘s strategy rights without entitlement to enforce the deed prior to Mom's death, in cases as diverse as criminal matters, Mom can plead "fraud in the inducement." • Moving scam counterterrorism, and even foreign Forensic accountants utilize an understanding counterintelligence investigations. Forensic • Religious fraud of economic theories, business information, Accounting in the Private Sector Forensic • Rigged gambling games such as the shell financial reporting systems, accounting and Accountants (FAs) are also employed by game auditing standards and procedures, data businesses that are seeking to identify and • Securities frauds such as pump and management & electronic discovery, evidence prevent fraud within their own companies, dump gathering and investigative techniques, and or with business partners. litigation processes and procedures to perform A Forensic Accountant (FA) may be • Tax fraud, not reporting revenue or their work. Forensic accountants are also illegally avoiding taxes. In some countries, employed by a corporation that wishes to increasingly playing more proactive risk prove it has clean practices to its stockholders, tax fraud is also prosecuted under false reduction roles by designing and performing billing or tax forgery or may be asked to investigate a potential extended procedures as part of the statutory partner before a merger or acquisition takes Intrinsic fraud is an intentionally false audit, acting as advisers to audit committees, place. Forensic Accounting encompasses the representation that goes to the heart of what fraud deterrence engagements, and assisting process of auditing to recognize and investigate a given lawsuit is about, in other words, in investment analyst research. financial fraud occurring in an organization. whether fraud was used to procure the In criminal law, a fraud is an intentional transaction. (If the transaction was fraudulent, There is a growing need among law deception made for personal gain or to damage enforcement professionals, small business it probably does not have the legal status of another individual; the related adjective is a contract). owners, and department managers to fraudulent. The specific legal definition varies better understand basic forensic accounting Intrinsic fraud is distinguished from extrinsic by legal jurisdiction. Fraud is a crime, and principles, how different types of fraud fraud which is a deceptive means of keeping also a civil law violation. Defrauding people occur, and how to investigate a fraud that a person from discovering and/or enforcing or entities of money or valuables is a common is detected in a way that maximizes the legal rights. It is possible to have either intrinsic purpose of fraud, but there have also been chances of successful prosecution of the or extrinsic frauds, or both. fraudulent "discoveries", e.g., in science, to perpetrator. During a trial, perjury, forgery, and bribery gain prestige rather than immediate monetary gain. Executives, managers, criminal investigators, of a witness constitute frauds that might have and prosecuting attorneys all require a basic been relieved by the court. Such actions will Forensic Accountant (FA) may work in understanding of accounting principles and usually lead to a mistrial being declared and collaboration with a legal team, with investigative techniques to protect after any penalties for the involved parties a investigators from the police department, or organizations from fraud. Forensic new trial will take place on the same matter. with other law enforcement professionals. Accounting and Fraud Investigation for Two types of intrinsic fraud in contract law Forensic Accounting in Other Criminal Cases Non-Experts break down this knowledge, are fraud in the inducement and fraud in the While forensic accounting skills are most which is invaluable for better insight into factum. relevant to finance-based cases, a Forensic where an organization is most susceptible Fraud in the factum is a legal defense, and Accountant’s (FA) knowledge is sometimes to fraud as well as to a more productive occurs where A signs a contract, but either used in investigation of other crimes. For investigation process when fraud is does not realize that it is a contract or does example, when it is necessary to prove a suspected. not understand the nature of the contract, suspect‘s involvement by following the trail 15 Articles PIPFA Journal How to Cope with Pressure to Lower Fees Practice Management Tips for SMPs Introduction For various reasons, this heightened fee clients to order a wider range of pressure threatens to become the new advisory services. Persistent and As the global economy continues to norm-lasting long after the global widespread under-pricing, however, struggle to gain momentum, accountancy economy has recovered. First, clients may will impair the perceived value of the practices are finding that pressure to lower be determined to keep their bills down service over time, so such practices their fees for their professional services and may feel that all professional services, should be avoided. Packaging continues to present a significant including legal and accounting, may not services, sometimes more desirable challenge. That is one of the key messages warrant the fees paid before the economic services together with essential but coming out of the May-June 2012 edition downturn. Second, globalization and the less desirable ones, can also be a useful of the IFAC SMP Quick Poll, which benefits of lowered costs from outsourcing way of getting clients to focus on the attracted 3,678 respondents from around to cheaper offshore contractors may concept of comprehensive service the world. Asked to name the biggest prompt clients to demand a share in the provision rather than on hourly challenge their small- and medium-sized cost savings. Third, charge-out rates. technological advances 2. Stress to Clients the Value of Services mean software can Exhibit-A Offered-SMPs should regularly and perform some tasks often communicate the value of their long the preserve of services to their clients so that they trained human appreciate the benefits of the services judgment, again leading they receive. Articulating this value some clients to expect to clients may help mitigate fee to share in pressure. The ability to communicate corresponding cost value is an important part of value reductions. Regardless pricing. of whether downward pressure on fees is a 3. Focus Efforts on Most Valuable temporary phenomenon Clients-SMPs should evaluate which or more permanent, the clients are the most valuable by following tips should ranking them and then focusing their help SMPs to react to efforts on serving these clients. For this pressure while non-audit services like business preserving the quality advisory, tax, and accounting, practice (SMP) is facing right now, the of professional services rendered. Indeed, practices might wish to implement largest number (27%)-especially those maintaining the quality of services different service levels (basic, from Europe and Asia-cited pressure to provided in the face of ongoing fee premium, etc.) to suit different lower fees. This was followed closely by pressure is essential not only to the categories of clients and price keeping up with new regulations and reputation of individual SMPs, but in the accordingly. This technique, referred standards (26%). See also Exhibit A for long run, to the reputation of the entire to as yield management, is widely the complete data. accountancy profession. used in the airline industry to price While fee pressure is nothing new-the seats. Ensuring a proper amount of profession has always faced various degrees Some Tips for Coping with capacity is allocated to various client of fee pressure, in certain areas more than Fee Pressure segments, while offering a others-the ongoing economic malaise has differentiating value proposition 1. Adopt New Approaches to Pricing- likely contributed to increased concerns within each segment, is an essential For some service offerings, like about fee pressure among many SMPs. element of implementing value business advisory, the hourly billing Many clients are faced with subdued pricing strategies. In some cases, it model may place a strain on the demand for their products and services may pay to move away from less practice and value pricing-which sets (tied for 3rd biggest challenge faced by profitable clients. prices primarily, but not exclusively, SME clients in poll). They are continuing 4. Leverage Technology to Improve on the value, perceived or estimated, to look for ways to reduce costs, so it's Processes and Lower Costs-SMPs to the customer rather than on the not surprising to find SMPs facing can implement process improvements cost of the service or historical prices- demands to negotiate fees or cut prices to maintain profitability in the face may be part of the solution to while also maintaining the quality of of stagnant or declining fees by alleviating fee pressure. Special prices services that SMPs are known for. maximizing the use of technology. could be offered as an incentive for For example, cloud computing 16 Articles PIPFA Journal

solutions offer the possibility of choice in suppliers may have end result, which in turn, may impair delivering the same services like improved considerably since the the practice's brand. Therefore, staff payroll and bookkeeping for less cost. practice chose its suppliers, and assignments need to be managed And, simple choices like using email therefore, warrant a fresh review. carefully. instead of regular postal services, and 7. Tackle Overheads-SMPs should seek IFAC Resources: SkypeTM instead of telephone or to minimize waste and make the most in-person meetings can also help efficient use of resources, both human • Guide to Practice Management for lower costs. Practices may be in a and environmental, including Small- and Medium-Sized Practices position to pass on a portion of the workspace, energy, and consumables. Second Edition (especially Module cost savings associated with IT For example, practices should 3; the 3rd Edition [December 2012] efficiencies, which will likely be well consider optimizing the utilization will include enhanced content on received by clients. of expensive office space and energy pricing) 5. Re-examine the Practice's Service by encouraging staff to perform much • Links to free practice management Offerings-SMPs should consider of their work at the client's premises resources and tools (especially whether they can add value (and or at home and to pre-book a desk Module 3) hence fees) with additional services space when in the office. Similarly, • Business Advisory Video Series, for little extra cost or provide the practices should seek the most featuring tips from SMP Committee same for less cost. Specializing in efficient use of staff through members niche markets or services might be improved distribution of workloads, worth pursuing to set the practice ensuring adequate planning and Article written by Giancarlo Attolini, apart in the marketplace. For supervision of engagements, and Chair, IFAC SMP Committee (see bio) and others, providing a broad range of delegating work to the appropriate Paul Thompson, Deputy Director, SME advisory services and offering value levels. Flexible working hours may and SMP Affairs, IFAC pricing (see above) may prove enable the practice to avoid staff Copyright © August 2012 by the profitable. redundancies, which can erode morale International Federation of Accountants 6. Find Cheaper Sources of Supply- and may make it difficult to recruit (IFAC). All rights reserved. Used with many suppliers, for anything from new staff as and when conditions permission of IFAC. Contact Internet service to computer improve. Shifting more routine work [email protected] for permission to hardware, may offer benefits to new onto more junior staff can help cut reproduce, store, or transmit this clients that warrant switching costs, but, without adequate guidance, document. providers. Competitive pricing and could also diminish the quality of the Exhibit A

North Central South Africa/ What is the biggest challenge America America/ Europe Middle Asia your practice is facing? % Caribbean % East (%) % (%) Keeping up with new regulations & standards 44 25 25 23 23

Attracting and retaining clients 9 19 20 33 17

Ability to adapt to changing client needs 1 4 3 2 2

Pressure to lower fees 10 12 31 17 32

Rising costs 5 5 4 5 5

Succession planning 6 4 1 3 1

Work-life balance 14 12 8 5 4

Attracting and retaining staff 8 11 3 6 7

Competition 2 5 4 5 7

Keeping up with new technology 1 3 1 1 1 Boldface indicates highest percentage per region.

17 Articles PIPFA Journal

Human Resource Accounting By: Muhammad Faisal - APFA Definition: sophisticated computer based machinery. parameters. Furthermore, this asset cannot Moreover, a person has to know how he be sold therefore there is no independent Human resource accounting is the process can save time and wastage of material in check of valuation. of identifying, measuring and addition to be more productive. communicating information about human Relevant International resources which treats people as machines Non-Disclosure in the Accounting Standard (IAS): with a monetary value attached to them. Balance Sheet: According to Flamholtz the definition of IAS 38 deals with the accounting HRA is “the measurement and reporting Instead of so much importance of human treatment of Intangible Assets, however, of the cost and value of people in resources it is also fact that a balance sheet states that a resource will be qualified as organizational resources”. which is supposed to disclose all the assets an asset only after meeting two conditions of the enterprise completely missing this one of which is control of the entity over Importance: asset. Human asset is virtually never the resource, in turn the control may be Adam Smith, in his renowned book shown on the face of balance sheet as a assumed if entity can legally enforce others "Wealth of Nation", classified the factors distinct category. It seems that economic not to benefit from the resource of production into Land, Labor, and value of human resources is recognized (i.e. HR) which in Capital on the other hand the modern but off the accounting books. So how an management reclassified them as Men, auditor can claims in his report that the Material, Machinery and Money. The balance sheet shows a true and fair view terms 'Labor' and 'Men' have now been of the business on a specific date. The termed as 'Human Resource'. situation gets more awkward when we see that profit and loss statement accounted The competitive position of any for all human resources related costs. The organization largely depends upon its cost of HR encompasses cost of recruiting, assets while human being is the most selection, contracting, placing, training, important asset among them. Managers orientation, promotion, improvement, often say that people are their most substitution, exit rewards, facilities, health, important asset. Especially in case of IT safety, pensions, contributions to social firms, academic institutions, consulting security, retirement, redundancy and firms etc., the total worth of the dismissal. the use of the entity, similarly an entity organization depends mainly on the skills has insufficient control due to the absence of its employees. Without introduction of Valuation Problem: of any legal or contractual right over the human being no production is possible, The biggest challenge in HRA is that of expected future economic benefits arising that's why today the importance of human assigning monetary values to the worth from customer relationship or customer resources as well as development of human of employees which may be equally loyalty. In this way International resources have been well recognized. acceptable to all in turn which may be Accounting Standards Board does not Demand of professionally qualified persons disclosed in the balance sheet. In this allow an accountant to recognize and has now been increasing worldwide even regard we can go to the methods developed disclose HR as an intangible asset in the production workers are required to be to appraise performance of individuals. balance sheet of the entity. Therefore, The skilled not only on the base of experience Among number of these methods no one Companies Ordinance does not require of years but also knowledge about technical can suggest which method free of major so, however, some companies in order to side of production including know how limitations. Because if we assign a value maintain good practice disclose HRA or to work with modern and more to an employee then it will be based on some aspects of HRA in the annual report. personal judgment (which may be different among different appraisers even one References: appraiser may also decide slightly different • http://en.wikipedia.org/wiki/Human during different times regarding same resource accounting person) on the other hand an effective • International Accounting Standard 38 human resources as a team create a synergy effect i.e. 2+2>4. So researchers are facing a considerable issue to develop a framework model to be used to quantify human qualities into monetary terms which is based on systematic standardized

18 NEWS PIPFA Journal News Update IFAC News time to implement the revised of strategic planning, resource utilization, requirements. value creation, accountability, and Proposal for amendments To explain all the revisions to the SMOs, assurance. Such a holistic approach ensures to IFRS 9 IFAC Member Body Development staff that governance is integrated into all aspects of an organization. The International Accounting Standards has also published a guidance document, Board (IASB) has released Exposure Draft A Comparison Guide to the 2012 SMO Draft Educational Material for ED/2012/4 ‘Classification and Revisions, to explain the revisions and Measuring Fair Value of Unquoted Measurement: Limited Amendments to assist member organizations and their Equity Instruments IFRS 9 (proposed amendments to IFRS technical staff to identify changes and 9 (2010))’. The proposed new fair value understand and address them. As part of the IFRS Foundation Education through other comprehensive income Initiative, the IFRS Foundation staff is IPSASB Publishes Public developing educational material to support (OCI) measurement category would Sector Conceptual Framework include certain financial assets when two IFRS 13 Fair Value Measurement. The conditions are met: Exposure Drafts material will cover the application of the principles in IFRS 13 across a number of • the contractual cash flows of the assets The International Public Sector Accounting Standards Board (IPSASB) has released topics. These topics will be published in are solely payments of principal and individual chapters as they are completed. interest and for comment two Exposure Drafts related to its project to develop a Conceptual Draft of the first chapter of this educational • the assets are used in a business model Framework for the general purpose financial material titled ‘Measuring the fair value which is neither to exclusively hold reporting of public sector entities. of unquoted equity instruments within the nor sell. scope of IFRS 9 Financial Instruments’ is Conceptual Framework Exposure Draft available at: In addition, a newly introduced paragraph (ED) 2, Conceptual Framework for clarifies that gains or losses on a financial General Purpose Financial Reporting by http://www.ifrs.org/Alerts/ProjectUpdate/ asset in the new measurement category Public Sector Entities: Elements and Pages/Educational-material-FVM- would be recognised in other Recognition in Financial Statements, Unquoted-equityinstruments.aspx comprehensive income, with the exception refines the issues highlighted in the IASB Issues Investment Entities of impairment losses and foreign exchange Consultation Paper published in 2010 and (Amendments to IFRS 10, IFRS gains and losses. Upon disposal, any gain reflects the IPSASB's consideration of the or loss previously recognised in OCI would responses to that Consultation Paper. 12 and IAS 27) be recycled to profit or loss for the period. Conceptual Framework Exposure Draft The International Accounting Standards The comments on the exposure draft are Board (IASB) has issued Investment requested by March 28, 2013. (ED) 3, Measurement of Assets and Liabilities in Financial Statements, Entities (Amendments to IFRS 10, IFRS Statements of Membership identifies the measurement concepts that 12 and IAS 27). The amendments apply Obligations (Revised) should guide the IPSASB in the selection to a particular class of business that qualifies as investment entities. Under IFRS 10 IFAC completed its revision of the of measurement bases for International Public Sector Accounting Standards. Consolidated Financial Statements, Statements of Membership Obligations reporting entities were required to (SMOs). The result is a clarified set of Comments on the Exposure Drafts are requested by April 30, 2013. consolidate all investees that they control SMOs-seven benchmarks that are globally (i.e. all subsidiaries). The amendments recognized as a framework for strong, IFAC Issues New Report provide an exception to the consolidation credible, and high-quality professional for Professional Accountants requirements in IFRS 10 and require accountancy organizations (PAOs). The in Business investment entities to measure particular revised SMOs, which are the basis of the subsidiaries at fair value through profit or IFAC Member Body Compliance Program, The Professional Accountants in Business loss, rather than consolidate them. The are designed to assist PAOs in leading the (PAIB) Committee of the International amendments also set out disclosure way to serve the public interest by supporting Federation of Accountants (IFAC) has requirements for investment entities. The adoption and implementation of issued ‘Integrating Governance for amendments are effective from 1 January international standards and maintaining Sustainable Success’, which uses case 2014 with early adoption permitted. quality assurance review systems and studies to analyze how professional investigation and discipline mechanisms. accountants in business support the IES 7 Continuing Professional performance of their organizations by With the exception of SMO 1, the effective Development (Redrafted) integrating governance into the key drivers date for the revised SMOs is January 1, In a continuing effort to improve the clarity of sustainable organizational success. The 2013. SMO 1 has an extended effective of its standards, the IAESB has undertaken report addresses how professional date, January 1, 2014, to provide member a project to redraft all eight of its IESs in accountants support their rganizations to bodies or responsible authorities sufficient accordance with its new clarity drafting build good governance into the entire cycle 19 NEWS PIPFA Journal conventions. IES 7, Continuing • Updating fiscal transparency standards SECP News Professional Development, is the first to address gaps in, and inconsistencies clarified standard to be released since the between, individual jurisdictions’ SECP launches new takaful rules project began in December 2010. IES 7 standards; Takaful, the Islamic alternative of insurance, prescribes continuing professional • Including all entities that have fiscal is a scheme based on the principles of mutual development (CPD) for professional implications for governments assistance in compliance with the provisions accountants to develop and maintain their (including central banks, public of Islamic shariah, and which provides for professional competence so as to provide entities, and corporations outside of mutual financial aid and assistance to the high-quality services to clients, employers, the general governments) in fiscal participants in case of occurrence of certain and other stakeholders. The IAESB has forecasting, budgeting, and financial contingencies and whereby the participants clarified the obligations of CPD through reporting; mutually agree to contribute to the common the redrafting of IES 7, and draws • Evaluating countries’ compliance with fund for that purpose. The existing Takaful international attention to the requirement Rules were issued in year 2005. During the on professional accountants to develop and fiscal transparency standards using, for instance, auditing and assurance course of business activity and maintain professional competence implementation of these Rules, a number of throughout their careers. as a means for assessing compliance with standards; practical issues were highlighted by the stakeholders. IPSASB Welcomes IMF Paper • Strengthening incentives for Supporting International Public improvements in fiscal transparency To address these concerns, the Securities and Sector Accounting Standards practices; Exchange Commission of Pakistan (SECP) constituted a Committee in year 2007 with The International Public Sector • Aligning the methodologies and a mandate to review the existing Takaful Rules Accounting Standards Board (IPSASB) standards for fiscal forecasting, and recommend the possible enhancements. welcomed the recent release of the budgeting, and financial reporting to The Committee laid a special focus on the International Monetary Fund (IMF) reinforce the links between fiscal areas including the coherence with accounting paper, , and its support for International transparency and long-term provisions of the SEC (Insurance) Rules Public Sector Accounting Standards sustainability; and 2002, guidelines for allowing conventional (IPSASs), the globally accepted, high- • Strengthening fiscal transparency and insurance companies to do Takaful business quality, accrual-based standards issued by public sector financial management through specialized “window” operations, the independent standard-setting body. in all nations and, in particular, in prescribing of percentages in respect of various Many governments, jurisdictions, and developing and emerging nations. modes of the Shariah complaint investments international institutions have already IPSASB Chair Andreas Bergmann said for the purpose of determining solvency, adopted IPSASs, while others are working the IPSASB agrees with the IMF that the among others. toward their implementation. requirements of accounting standards and The Committee after detailed deliberations The IPSASB advocates for better financial the statistical framework should be finalized and submitted its recommendations reporting by governments worldwide and harmonized, as far as the different purposes based on which the new Takaful Rules have the need for improvements in the of the two frameworks permit, adding that been drafted. The SECP reviewed the draft management of public sector resources. it is critical for transparency and rules and after seeking expert opinion of Since 1997, the IPSASB has developed accountability that governments around Shariah scholars and legal experts, the draft and issued a suite of accrual standards and the world have unambiguous guidance. new Takaful Rules have been approved by a cash-basis standard for countries moving He said the IPSASB also concurs that the the SEC Policy Board. The launching toward full accrual accounting. IPSASs efforts to monitor and enforce compliance ceremony of new rules took place at a local promote greater transparency and with international standards, including hotel in Karachi where Chairman SECP, accountability in public sector finances and IPSASs, need to be reinvigorated. Muhammad Ali officially announced the allow for enhanced monitoring of “The IMF paper underlines the need for promulgation of the new Takaful Rules, government debt and liabilities. strong and transparent financial reporting, 2012. These rules will also be available on The IMF paper highlights the seriousness which has the potential to improve public the official website of SECP. and extent of the current inadequacies in sector decision making and make The Chairman further said that SECP is governments’ fiscal reporting and governments more accountable to their committed to partner with key stakeholders accountability and underscores the constituents,” Bergmann said. “As we have for the development of Takaful, to extend immense risks associated with these witnessed with the sovereign debt crisis, the insurance services and awareness to people shortcomings. when governments do not properly manage around Pakistan. The SECP's unconditional Fiscal Transparency, Accountability, and their finances, the consequences can include support to such initiatives is another example Risk also calls for other measures supported a loss of democratic control, social unrest, of this strong commitment and represents by the IPSASB, including: and the failure to meet their current and the path of progress SECP want to take future commitments.” together over the upcoming times.

20 NEWS PIPFA Journal

While speaking at the occasion, revised mark-up rates, the circular added. FBR News Commissioner (Insurance), Mohammed The rates of service charges for Participating Asif Arif said that at present three General Financial Institutions (PFIs) and rates for Clarification regarding Takaful (non-life insurance) and two Family end users under the Long Term Financing differences in the Export Takaful (life insurance) companies are Facility (LTFF) have also been reduced by operating in Pakistan but it is expected that 150 basis points with effect from September to Pakistan figures of after the promulgation of new Takaful Rules, 10, 2012. The rates of refinance under LTFF China Viza-a-Viz Pakistan the number of Takaful service providers in will now be 9.50% for financing up-to 3 import figures. Pakistan will increase substantially as the years, 8.60% for over 3 years and up-to 5 conventional insurance companies will also years and 8.20% for over 5 years and up-to 1. The Additional Secretary Revenue be allowed then to offer the Takaful products. 10 years. Participating Financial Division, Shahid Rahim Sheikh has Pakistan is the second country in the world, Institutions'(PFIs') spread for these tenors clarified here that during meetings with after Indonesia, which has allowed such will be 1.50%, 2.50% and 3.00% respectively. the Federation and the various window Takaful operations. It has been seen Hence, the end users' rates for these tenors Chambers, the issue of under invoicing from the empirical experience that since have now been reduced to 11.00% from especially with regard to imports from existing conventional companies have edge 12.50%, 11.10% from 12.60% and 11.20% China are repeatedly raised. While the in terms of better reinsurance & retakaful from 12.70% respectively, according to undesirable fact of under invoicing cannot accessibility with years of expertise, along IH&SMEFD Circular No.5. be denied and Pakistan Customs has in with the customers having brand loyalty, the past and at present also taken legal Similarly, the rates of service charges under such companies may serve the larger portion and administrative measures to address the Scheme for Financing Power Plants Using of the market with their larger sales force this problem, the complaint regarding Renewable Energy have been re-fixed at and vast branch network. huge gap in the trade figures of Pakistan 8.60% for financing up-to 5 years and 8.20% and China has been examined at length. SBP News for over 5 years and up-to 10 years with effect from September 10, 2012. Banks/DFIs will 2. It has been stated in different meetings SBP slashes refinance rate under be allowed to charge 2.50% and 3.00% spread and also in a section of national media three financing schemes by 150 basis respectively for these tenure. Hence, the end that reportedly China exported goods worth US $ 12 billion to Pakistan during points users' rates for these tenure have now been reduced to 11.10% from 12.60% and 11.20% last year while the import figure of The State Bank of Pakistan (SBP) has with from 12.70% respectively, according to Pakistan indicate an import of US $ 4 immediate effect reduced the refinance rate IH&SMEFD Circular No.6. billion. This stated gap is attributed under the Export Finance Scheme (EFS) and entirely to under invoicing in the import the service charges under the Long Term SBP brings down policy rate from China. It is clarified for the Financing Facility (LTFF) and the Scheme to a single digit (9.5%) information of all concerned that this for Financing Power Plants Using Renewable The State Bank of Pakistan (SBP) has cut assertion is incorrect. As per official trade Energy by 150 basis points or 1.5 percentage its policy rate by 50 basis points to bring it figures of both the countries, available points. down from 10 percent to 9.5 percent with on the website of International Trade Now the exporters can get financing from effect from 17th December, 2012. This was Centre (ITC) (www.trademap.org), the banks under EFS at 9.5 per cent per annum decided by the Central Board of Directors value of China's exports to Pakistan (p.a.). Earlier, the exporters were getting the of the State Bank of Pakistan at its meeting during 2011 was US $ 8.4 billion. financing under this scheme at 11 per cent p.a. held under the chairmanship of SBP Pakistan imports were US $ 6.4 billion. Governor, Mr.Yaseen Anwar in Karachi. The discrepancy was thus of only US $ It has been decided that rate of refinance 02 billion and not US $ 8 billion as under the Export Finance Scheme applicable According to the Monetary Policy Decision, reported in different trade meetings and from September 10, 2012 and onward till the decline in CPI inflation is considerably a section of press. further instructions shall be 8.50% p.a. The faster than earlier estimates. The year-on- 3. The issue of disparity in the trade figures commercial banks shall ensure that where year CPI inflation for November 2012 stands of the two countries in addition to the financing facilities are extended by them to at 6.9 percent, with food inflation dropping element of under invoicing is attributed the exporters for availing refinance facilities to 5.3 percent and non-food inflation coming to different accounting periods and under the Export Finance Scheme, their down to 8.1 percent. Even the core inflation methodologies. Pakistan Customs has maximum margin/spread does not exceed measures are in single digits. This broad taken up this matter with China 1% p.a. says IH&SMEFD Circular No. 4 based deceleration in inflation is now expected Customs in the past also and the matter issued to all banks. to keep the average inflation for FY13 below is being again attended to. It is further the 9.5 percent target for the year. Therefore, The reimbursement of mark-up rate benefit informed that disparity in trade figures the Central Board of Directors of SBP has to exporters, on excess performance under of China is not unique to Pakistan and decided to reduce the policy rate by 50 basis Part-II of the Scheme, as specified in SMEFD such variations also exist between trade points to 9.5 percent with effect from 17 Circular No.15 dated October 31, 2009, will figures of China and some of its other December 2012. be adjusted accordingly keeping in view the trading partners. 21 PIPFA Journal

Career Enhancement Tips For First Jobbers 3 KEY TIPS TO GROW YOUR CAREER

You found your first job and you feel a little anxious. You think Being single-minded means to be focused on your goals. to yourself - “How am I going to survive through all these?” When you focus your energy on your goal, you get more out With the right attitude and guidance, you will soon look of your effort. You inch closer to your goals. When you are forward to doing your best. single-minded other things do not distract you. You know Like any other career enhancement tips, there are no guarantees what you want and you power yourself towards it as best as for success. However, if you bring the right attitude and decide you can so you can clearly see what you want. to take action then you are half way there. Nothing will stop Knowing your goal and your personal definition of success is a first jobber like you from shining at your workplace. an important element amongst these career enhancement tips 1. Self-discipline for first jobbers. Equally important is to know your own strengths and your skills. If you want to enhance your career, The value of self-discipline in a first jobber is often play up on your strengths and improve on your skills required underestimated. Now that you are in the working world you for your job. What are you good at? What are the skills sets think to yourself, “Is self-discipline overrated?” We will tell you do not have that are required for the job? Build up on you, no. It is not overrated. We have often found new staff those skills. with good self-discipline doing better than The career enhancement tips in this sub-section basically those who are poor in it. means this - when you define what is success to you, you then Let us use a simple example to demonstrate pursue it single-mindedly knowing your strengths and the this, assuming it's a Friday and the rest of skills required to attain that success. the department is planning to go out for a fun night. You have an important 3. Sincerity document to be completed for the Sincerity in your career means a lot of things. For me, coming Monday. What do you do? Give as a first jobber you should look at doing your the fun night a pass and complete the work sincerely and joyfully. Meaning, work? Or join the fun and hope that do not treat your work as a drag. If you will find time to finish it over you feel that your work is a drag, the weekend thus leaving you little then start by asking yourself. Why chance to perfect it before is it so, before blaming anyone else submission? - be it the company, your boss or Part of self-discipline is also about your colleagues. So, be sincere with sacrifice. When you have strong self- yourself. What is your core challenge discipline, it is inevitable that you would in not being able to do your work sincerely? need to sacrifice some fun time to focus Being sincere at your work means doing it with your level on your goals. If you are interested in best. It means playing your part and taking personal advancing your career you may take some responsibility for your work. It also means to share your courses, or even read books to increase your knowledge. All learning and knowledge. When you share what you know these activities come with an opportunity cost. It could very about a certain task, you become an asset to your unit and well mean less time for leisure activities. this inevitably enhances your career. Many people think, the 2. Success more they hoard what they know the more advantage they have. However, in our experience this is not true. We find that You're probably thinking, “Success as part of these practical the more you share the more others are willing to share with career enhancement tips is funny.” Let us assure you it is not. you and the more you know. What I want to explain here is this - if you want to enhance In summary, the most important and practical career your career, define what success is to you. Once you know enhancement tips you can start now is - developing self- what success is to you then you can plan towards that goal. discipline, learning to sacrifice, define what success means to Spend some time thinking what success is to you. Crystallize you, be single-minded in pursuit of your goals by knowing this in your mind. Assuming you know what success is to you, your strengths and skills, and doing your work with sincerity the next step is to besingle-minded in the pursuit of your and have sharing as a work value you carry. goal.

22 News PIPFA Journal

PIPFA arranged a Seminar at Hotel One, Faisalabad as part of its Continued Professional Development (CPD) program for its members & students specially and for other professional accountants generally, on “Introduction & Features of Islamic Banking” presented by Dr. Khalil Ahmad Aazami (Ph.D. in Islamic Jurisprudence) Shariah Advisor, Bank Alfalah Islamic Banking. The seminar covered vast areas of Islamic Banking, key issues and misconceptions regarding Islamic Banking, its various products (e.g. Musharakah, Murabahah, Ijarah, Salam & Istisna) Comparison between Conventional and Islamic Banking. The chief guest was Mr. Muzammil Sultan, President, The Faisalabad Chamber of Commerce & Industry who expressed his views and encouraged the efforts of PIPFA for arranging this professional event. The event was attended by more than 250 members & students of PIPFA, ICAP, ICMAP & ACCA. The participants appreciated the efforts of the institute for organizing such an informative seminar.

Invitation for Articles PIPFA Journal is the official publication of the Pakistan Institute of Public Finance Accountants and is being published to keep abreast its members and students with the latest developments in Accounting Industry. We would welcome articles from our valued students and members for forthcoming issue. Articles are not restricted to specific topic; students & members may send us the articles of their field of interest at following email address; [email protected] 23 PIPFA NEWS PIPFA Journal 19th Annual General Meeting of PIPFA The 19th Annual General Meeting of Pakistan Institute of Public Finance Accountants (PIPFA) held on October 31, 2012, at Office of the Auditor General of Pakistan, Constitution Avenue, Islamabad. Insertion o f Pakistan Military Accounts Department PIPFA is continuously expanding its services of promoting professional accounting education in over all Pakistan generally and Government Sector specially. The valuable addition of Pakistan Military Accounts Department shows great trust and confidence in PIPFA education. Allahumduallah, the honorable Military Accountant General, Malik Khadim Hussain signed an agreement with PIPFA for training of PMAD employees in Public Sector Stream. The classes of the same will commenced from mid of January, 2013. Career Counseling Seminars PIPFA Education Department organized a series of Career Counseling Seminars during last session and covered different Colleges at Karachi, Lahore Faisalabad & Islamabad. The objective was to guide & facilitate those young students who are not familiar with Professional qualification & its need in the current scenario. In these sessions PIPFA covered major areas like qualification & scope of Public Finance Accountancy, PIPFA exemption policies, International Affiliation, membership & the shortest path to the professional venue. More than 2200 Students attended those seminars. PIPFA brochures, journals & promotional materials were distributed among the participants. Colleges / Institutions managements admired PIPFA efforts and encouraged PIPFA team for more visits regarding further students counseling and for spreading knowledge about Professional Accounting. Following persons greatly supported PIPFA for Conducting Career Counseling Seminars

Prof. Abdul Hafeez Prof. Syed Ali Yar Prof. Abdul Sattar Principal, Govt. Commerce College Principal, Islamabad Model College Principal, Govt. Premiere Sector H-8, Islamabad F.10/4, Islamabad College Nazimabad. Karachi.

Prof. Agha Tahir Ejaz Mr. M. Ibrahim Zakir Mr. Ahsan Afzal Principal Lecturer, Govt. Degree Science & Lecturer, Govt. Degree College Punjab Groups of Colleges Lahore.Commerce College Gulistan-e-Jauhar, Karachi. Gulshan-e-Iqbal near SZC, Karachi.

Mr. M. Anwar ul Haq Mr. Ehtesham Shaukat Mr. Junaid Subhani 24 (FPFA-3171), Director, (APFA-4198), Principal, (FPFA-1636) Deans Shibbli College, Faisalabad. Phool Academy of Commerce, Faisalabad. Director TIPS Faisalabad. PIPFA NEWS PIPFA Journal Karachi PIPFA Karachi arranged an in house session at PIPFA Head office Karachi and various Career Counseling Seminars in Boys & Girls Colleges. The audience were from all level of qualifications including Intermediate Graduate & Master. These sessions were conducted by PIPFA Education / Marketing team along with PIPFA Faculty members. Approximate 600 prospective students attended the seminars and show their inclination toward PIPFA Qualification. Seminars were conducted at Govt. Premier College North Nazimabad, Govt. Degree Girls College Gulshan-e-Iqbal near Shaikh Zaid Centre (S.Z.C), Govt. Degree Boys College Gulistan-e-Jouhar-near SZC, Govt. College For Men Nazimabad, Govt. Degree College For Women Korangi No. 04, Govt. College Gulshan-e-Iqbal near Safari Park and Federal Urdu University (Abdul Haq Campus).

Faisalabad PIPFA Faisalabad Centre covered various Institutes for conducting Counseling Seminars such as Deans Shibbli Girls College Samundari, Shibbli College for Boys Samandari, The Istle of Professional Studies (TIPS), Phool Academy, Pakistan Boys College, Pakistan Degree Girls College, & Al-Habib Group of College.

25 PIPFA NEWS PIPFA Journal Lahore PIPFA Lahore Centre organized Career Counseling Seminars in several Institutes / Colleges including Government Dayal Sing College, Links Academy, Punjab Group of Colleges & Iqra Meridian Academy. A vast number of participants were observed in the events, belonging from all levels of educational streams.

Islamabad In Islamabad City seminars were arranged in well reputed Government Colleges in different areas including Govt. Post Graduate College H-8, Govt. Post Graduate Commerce College H-8/4, Govt. Model College F-10/4. An In-house session was also conducted at PIPFA Islamabad centre.

Glimpse of some newspapers coverage (Daily Express, Daily Pakistan & Daily Dunya) about PIPFA Career Counseling Seminars

PIPFA NEW OFFICE BEARERS FOR 2013 The Board of Governors of Pakistan Institute of Public Finance Accountants in its 95th meeting has elected new office bearers for 2013. Dr. Syed Turab Hyder as President of the Institute for the year 2013. Further, Mr. Shahzad Ahmad Awan as Vice President, Mr. Rafaqat Ullah Babar as Secretary and Mian Muhammad Shoaib as Treasurer have been elected for the same term.

Annual Subscription Students who have not paid yet their annual subscription for the year 2012-13 are reminded to pay the same at their earliest along with late fee surcharge of Rs. 500/-.

26