O certain ormalities the ban comenced its operations

Info iconThis preview shows pages 24–26. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: o certain ormalities, the Ban comenced its operations rom April 7, 2 6. 1.3 The shares o the Ban are quoted on the Karachi Stoc Exchange. The Ban is operating with ten branches as at December 31, 2 6. 2. BASIS OF PRESENTATION 2.1 These inancial statements have ben prepared in acordance with the requirements o State Ban o Pa istan. 2.2 The Ban comenced its operations rom April 7, 2 6 and acordingly, the pro it and los acount or the year covers the period comenced April 7, 2 6 to December 31, 2 6. Acordingly, there are no coresponding igures to report or pro it and los acount. 2.3 The Ban provides inancing mainly through shariah compliant inancial products. Except or Murabaha transactions (which are acounted or under the Islamic Financial Acounting Standard- 1), the purchases, sales and rentals arising under these arangements are not re lected in these inancial statements as such but are restricted to the amount o acility actualy utili ed and the apropriate portion o rental / pro it thereon. 3. STATEMENT OF COMPLIANCE These inancial statements have ben prepared in acordance with the directives isued by the State Ban o Pa istan, the requirements o the Ban ing Companies Ordinance, 1962, Companies Ordinance, 1984, International Financial Reporting and Acounting Standards isued by the International Acounting Standards Board (IASB), and interpretations isued by the International Financial Reporting Interpretations Comite o the IASB, as adopted in Pa istan. The SECP has aproved the adoption o International Acounting Standard 39, "Financial Instruments: Recognition and Measurement" and International Acounting Standard 4 , "Investment Property". The requirements o these standards have not ben ta en into acount or the purpose o these inancial statements as the implementation o the said standards has ben de ered by SBP, vide BSD circular number 1 dated August 26, 2 2, or ban s in Pa istan til urther instructions. However, investments have ben clasi ied and valued in acordance with the requirements o various circulars isued by SBP. Notes to the Financial Statements for the year ended Decem er 31 006 24 4. BASIS OF MEASUREMENT These inancial statements have ben prepared under the historical cost convention except or certain inancial instruments which have ben stated at air value. 5. SIGNIFICANT JUDGEMENTS AND ESTIMATES The preparation o inancial statements in con ormity with aproved acounting standards and statutory requirements require the use o critical acounting estimates. It also requires management to exercise its judgment in the proces o aplying acounting policies. The areas involving a higher degre o judgment or complexity or areas where asumptions and estimates are signi icant to the inancial statements are disclosed below: 5.1 Inv tm nt In acordance with BSD Circulars No.1 and 14 dated July 13, 2 4 and September 24, 2 4 respectively, isued by the State Ban o Pa istan, the Ban clasi ies its investment port olio into "held- or-trading", "held-to-maturity" and "available- or-sale" securities using the management's judgments....
View Full Document

{[ snackBarMessage ]}

Page24 / 66

o certain ormalities the Ban comenced its operations rom...

This preview shows document pages 24 - 26. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online