SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
SPECIALIZED COMPANIES DIVISION
No.SC/M/RS/IAS-17/2004-
February 13,2004
Circular No. 10 of 2004

Subj ect:             Applicability of International Accounting   Standard   (IAS)   17 to Modarabas

In view of the practical difficulties being faced by the Modaraba Sector, as reported by Modaraba Association of Pakistan, the Securities and Exchange Commission of Pakistan (the Commission) has reviewed the applicability of IAS 17 to Modarabas.

2.                                                                 In order to facilitate the Modaraba sector, it is clarified that the applicability of IAS-17 to Modarabas has been deferred till further orders. The management companies of the Modarabas may, continue to prepare accounts of the Modarabas without applying the requirements of the said standard to modarabas.

3.                                                                 The aforesaid deferment is effective from 1.7.2003.

(Akbar Shah)

Registrar Modaraba

Distribution:

1.     Chief Executive, all Modarabas.

2.                                         The President, Institute of Chartered Accountants of Pakistan.

3.                                         The President, Institute of Cost and Management Accountants of Pakistan.

4.                                         Press Information Department.

5.                                         Office Copy.