SECP extends Cost Accounting Records

Cost order compliance requires exhaustive work, says commission.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has extended the applicability of the Cost Accounting Records in respect of compliance with the Synthetic and Rayon Companies Order 2012. 

The decision has been taken by the SECP owing to practical difficulties faced by the companies engaged in the business of synthetic and rayon, including polyester fibre, polyester filament yarn, polyester chips, production and manufacture of rayon and viscose tyre yarn/cord.

The SECP’s attention was also drawn to the condition of the domestic polyester staple fibre industry that was facing the worst business cycles, resulting in difficult market conditions and domestic oversupply. Unchecked dumping from China had eroded industry margins and domestic producers suffered continuous losses.

The commission says it acknowledges the fact that compliance with the cost order entailed exhaustive preparatory work for the segregation of costs, additional manpower and resources.

The existing requirements of financial reporting were
already extensive and introduction of the cost audit regime through the order for the polyester staple fibre industry may further add
to the cost of doing business due to system upgrade
and risks faced for any inadvertent breach of data confidentiality.

Published in The Express Tribune, January 23^rd,  2015.

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