The Securities and Exchange Commission of Pakistan has expressed its surprise on receipt of policy note from the Competition Commission of Pakistan (CCP) with regards to already withdrawn Companies Cost Accounting Records (General Order), 2008. The SECP in its meeting held on August 10, 2011 has decided to withdraw the 2008 Order owing to certain reasons, one of which was that it requires circulation of cost audit reports to the members since cost audit is perceived more of a management tool.
The CCP has issued a policy note dated August 30, 2011 commenting on the withdrawn 2008 Order especially focusing on discouraging the public dissemination, which has already been taken care of by the SECP. In this regard when senior officials of the SECP contacted and clarified the position to the CCP, CCP expressed its comfort and appreciation for SECP’s forthcoming approach. CCP noted the fact that the SECP itself recognizes that cost audit reports are a management tool and not intended for public dissemination which duly addresses CCP’s primary concern that any future direction would not entail such circulation requirements.
According to the CCP, circulation of such sensitive data would have been in violation of the provisions of the Competition Act, 2010. The applicability of 2008 Order was deferred a number of time by the SECP keeping in view the practical difficulties being faced by companies. The SECP as its policy is in close contact with the relevant industries as well as the professional bodies, the Institute of Cost and Management Accountants of Pakistan and Institute of Chartered Accountants of Pakistan while drafting the industry specific-cost orders in line with the earlier precedents in case of sugar, cement and vegetable ghee which are in the field since the year 1998.
