third annual report 2014 ksa chapter third annual report 2014 2 president’s review in the name of...

KSA CHAPTER

Formed under the MoU with SOCPA and operating under the Patronage of Pakistan Embassy in KSA

Third Annual Report

2014

ICAP KSA CHAPTER THIRD ANNUAL REPORT 2014

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Table of Contents

President’s Review…………………………………………………………………………………………………………………… 2 Agenda of Third Annual General Meeting………………………………………………………………………………… 6 Report of Management Committee…………………………………………………………………………………………… 7 Financial Statements for the year ended June 30, 2014 …………………………………………………………… 23


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President’s Review

In the name of Allah, the most Beneficent, the most Merciful “Then which of the favors of your Lord will ye deny?” Surah Rahman (55:13)

It gives me an immense pleasure to welcome you all at the 3rd Annual General Meeting of the ICAP KSA Chapter in Jeddah, Kingdom of Saudi Arabia. This is my first AGM as the President since taking the reins of the ICAP KSA Chapter in October 2013. Further, this is the first such event in Jeddah organized by ICAP KSA Chapter. I feel proud in presenting before you the achievements that your Chapter has attained since its inception and particularly over the last one year. Networking with the members Member’s interaction has remained a key objective of your Chapter, especially if you are away from your homeland. Keeping this in mind the following events were organized: 3rd Saudi-Pak Accountancy Symposium Your Chapter is proud to have organized the landmark 3rd Saudi-Pak Accountancy Symposium under the theme ‘Financial Leadership – The Way Forward’. The symposium received wide recognition and accolade from the audience. The event was held at the auspicious premises of Ritz Carlton in Riyadh and was attended by professionals from Corporate, Banking and Finance sectors of the Kingdom being the CEOs, Directors, CFOs and Partners of various organizations. Mr. Naeem Akhtar Sheikh, ICAP President, Mr. Khayyam Akbar, Deputy Ambassador, Mr. Abdulaziz AlZamil, Former Minister for Industry & Electricity, Dr. Abdulrahman Alhumaid, Chairman Bank Albilad, Mr. Umer Chapra, the renowned Islamic Economist, Mr. Tariq Javed, Senior Adviser to SAMA, Dr. Ahmad Almeghames, Secretary General SOCPA, partners of big 4 firms and many other luminaries graced the occasion with their presence.

Continued Professional Development (CPD) Seminars The Chapter has been instrumental in ensuring the professional development of its members living away from home. Accordingly, the Continued Professional Development Committee (CPD), under the chairmanship of Mr. Ali Haider, Mr. Mazhar Lodhi and Mr. Nabeel Najam has organized 7 CPD events in Riyadh, 6 events in Jeddah and 3 events in Khobar respectively. The overwhelming participation at these events is a source of inspiration for the central and regional organizing committees in their selection of interesting/relevant topics beneficial to members and professionals at large. Family Fun Day The event was organized in Riyadh for members along with their families to give them a break from the monotony of life and fill some colors of spring in the monochromatic canvas of life. At the same time the gala provided an opportunity to members to meet fellow members. The special feature was the activities in the ladies/children section.


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Moving forward with SOCPA

The landmark signing of the MOU with SOCPA in 2011 is helping a great deal to pursue the education in Finance, Governance and professional accounting standards/practices in the Kingdom of Saudi Arabia and has opened the doors of opportunities for members. One to one meetings have also taken place between ICAP Presidents and the Secretary General of SOCPA, Dr. Ahmad Almeghames to discuss ideas of mutual professional matters and how to further enhance this partnership. Affiliation with PAF (Jeddah) and ICMAP KSA Chapter Your Chapter has also signed understandings with Pakistan Accountants Forum (PAF) Jeddah and the Institute of Cost & Management Accountants Pakistan’s (ICMAP) KSA Branch Council to bolster co-operation and synergy in harmonizing and conducting joint seminars and events to a wider professional community. Meeting with ICAP President and Chairman Overseas Coordination Committee Taking the opportunity of the recent visit to KSA of the ICAP President and the Chairman Overseas Coordination Committee, the Management Committee held formal meetings to discuss the members’ problems. Both the dignitaries were very receptive and assured to help in all the matters raised by the Chapter. Promoting ICAP Brand The Chapter with its ongoing activities has been promoting the ICAP brand in the Kingdom for the last three years. The MOU with SOCPA provided a sounding board to establish strong foot hold in the Kingdom and has paved way for extending business connections with different stakeholders such as ministry, central bank, blue chip organizations, etc. Recognition & Appreciation ICAP KSA Chapter introduced the ‘MOST VALUED CONTRIBUTION TO THE PROFESSION (MVCP)’ Awards at its 3rd Saudi-Pak Accountancy Symposium. The peer led award recognizes the sustained achievements of our professionals in the Kingdom. Designed to recognize excellence and ‘best of breed’ professionals in the fields of accountancy and finance, the MVCP Award is presented to those professionals who have demonstrated excellence, enhanced the brand value of the profession and accomplished landmark goals. The Chapter also regularly recognizes the students in the Kingdom who have passed the final exams. Further, during the next AGM of the Chapter, second lot of most senior members of ICAP would be awarded Mementoes in recognition of their long association with the profession.


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ICAP examinations for students in the Kingdom This is the third year that the Chapter has facilitated in conducting the ICAP examinations for students resident in the Kingdom through Riyadh center. On an average, 150 students appear in every attempt. Graduate Degree Requirement for Visa Processing Your Chapter has raised with the Institute issue of stature of ICAP qualification faced by members for visa processing in the Kingdom. Since the ICAP qualification is equivalent to Masters, the Institute was conveyed to put up the case at the government level to sort out this ambiguity with the Saudi counterpart. ICAP has already contacted the relevant authorities and the matter is in progress. Middle East Job Portal The launch of ‘Middle East Job Portal’ (MEJP) for ICAP members and students residing in the Middle East is in its final stage and you will soon be hearing the good news in this regard. I personally believe that it is a right step in the right direction looking at the current turmoil our nation has been going through. I am confident that the MEJP, under the able Chairmanship of Mr. Umair Murtaza, will serve as a bridge between the prospective employer and potential employee to carve out a niche. Self-Reliance I am pleased to inform you that the Chapter is self-sufficient and does not request for funding from its parent, the ICAP. I take this opportunity to thank all of our generous sponsors who have contributed to the success of the Chapter and look forward to their continued support in future as well. Here I would like to draw your attention to an important aspect. So far the Chapter activities are being conducted through event-specific subscriptions and sponsorships. However, now I understand, it is time to stabilize our funding sources. In this context, I would propose to charge an Annual Fee of around SAR 150 to each member starting Jan 1, 2015. This would help bear the routine expenses, conduct small social events and would also bring a sort of bonding between the member and the Chapter. Bank Account I am pleased to inform you that we have succeeded in obtaining the Ministry of Commerce and the SAMA (Central Bank) permission for opening up a bank account for the ICAP KSA Chapter. This would allow us to conduct our activities in a more transparent manner. Tax Return Resolution In the Finance Act for 2013, the FBR had inserted a clause in the Income Tax Ordinance whereby the overseas members of the professional bodies were made to file a tax return regardless of a source of income from Pakistan or else. Alhamdulillah, with the efforts and follow up by the Chapter and the cooperation of ICAP, the matter has been resolved through an amendment in the Finance Act for 2014. Separate council seat for overseas members Your Chapter has put before the ICAP a proposal to create a separate council seat for overseas members which represents around 20% of the total membership of ICAP. This would allow us to present our point of view in a more constructive manner as being aware of the ground realities.


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Farewell to Patron in Chief and Colleague Ambassador of Pakistan in KSA On behalf of the ICAP KSA Chapter the undersigned met with H.E. Ambassador Naeem Khan of Pakistan in Saudi Arabia, patron in chief of your Chapter and bid him farewell. He was also presented with a shield in recognition of his whole hearted support to the Chapter since its inception. Mr. Naeem Khan has been appointed as the Assistant Secretary General of the Organization of Islamic Co-operation (OIC). Amir Waheed Ahmed

Our senior member, Amir Waheed Ahmed who was also part of the first Management Committee has left for Pakistan as part of his career progression. In order to say good bye to him, I alongwith Muhammad Asif Iqbal visited Khobar to bid him farewell which was organized during one of the CPD session held at Khobar in June and presented him with a shield. Amir was actively involved in the activities of Chapter since its inception. An important initiative taken by Amir was to contest the ICAP Council elections representing the overseas members and he received tremendous support from members by securing over 600 votes but missed the last seat by a mere 200 votes.

I wish both these gentlemen best of luck in their future endeavors. Acknowledgement I would like to acknowledge here the support of the members as without it feats achieved would not have been possible. I would also like to place on record the dedication and commitment of Mr. Muhammad Asif Iqbal, Secretary ICAP KSA Chapter who has been instrumental for the Chapter since inception. Also, I would like to thank the members of the Management Committee and other committees working under the umbrella of the Chapter as the achievements and progress would not have been possible without their support. Last but not the least, special thanks to the past President Mr. Amin Qureshi and those members who are continuously helping us organize various activities without even being part of any committee. Conclusion I would like to praise Allah Almighty who bestowed all the above success and seek His help and guidance in all our future endeavors for the wider benefit of the humanity. Muhammad Iqbal Ibrahim President Riyadh August 31, 2014


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Agenda of 3rd

Annual General Meeting

The 3rd Annual General Meeting of ICAP KSA Chapter will be held on September 15, 2014 at 5:45 p.m. at Al Bilad Hotel, Jeddah.

Agenda The proceedings of the meeting will commence with the recitation from the Holy Quran and will have the following agenda:

1. To confirm draft minutes of the 2nd Annual General Meeting held on September 30, 2013

2. To consider and adopt the 3rd Annual Report of the Management Committee

3. To approve of the Financial Statements of the Chapter for the year ended June 30, 2014

4. To propose introduction of annual membership fees

5. To present mementos to most senior ICAP members in KSA

6. Any other business with the permission of the Chair

Muhammad Asif Iqbal Secretary Riyadh August 31, 2014


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Report of the Management Committee

Structure The ICAP KSA Chapter was formed on August 1, 2011 while the existing Management Committee was elected unopposed for a period of two years commencing from September 1, 2013:

Muhammad Iqbal Ibrahim (Riyadh) President

Shahid Murad (Khobar) Vice President

Muhammad Asif Iqbal (Riyadh) Secretary

Khurram Amanullah (Riyadh) Head of Financial Affairs

Ashfaq Bataviya (Jeddah) Joint Secretary

Management Committee Meetings During the current year, six meetings of the Management Committee were held through teleconference. Most of these meeting were attended by all five members of the Management Committee.


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Working Committees In order to facilitate the Management Committee to carry out its functions as mentioned in the ICAP KSA Chapter Constitution and ICAP Overseas Chapter Guidelines, following working committee have been formed for the year 2013-14:

CPD Committee Riyadh

CPD Committee Eastern Province

CPD Committee Jeddah (Joint with PAF)

Placement Committee

Media and Communications Committee

CPD Committee Riyadh The Committee consists of the following members: 1. Ali Haider – Chairman

2. Muhammad Ali Husain – Secretary 3. Khurram Amanullah - Nominee from MC 4. Aamir Anwar 5. Arslan Azhar 6. Mubashir Shaikh 7. Raeel Rafique

The Committee organized the following seven CPD seminars during the year:

Date Topic Speaker

September 30, 2013

Business Failure - Prediction and Prevention

Tim Douglas, Senior Trainer, SIDF and Founding Chairman, IMA Riyadh Chapter

October 29, 2013

Accounting for financial instruments under IAS 39 with an outlook to IFRS 9

Zulfiqar Unar, Senior Manager, PWC, Dubai Dr. Yahya Aljabr, Associate Professor, Accounting, King Saud University

November 25, 2013

Islamic Banking - Accounting perspective

Armughan Kausar, Director, KPMG Dr. Khalid Aladdem, Assistant Professor, Accounting, King Saud University

December 23, 2013

Winning Interviews Dr. Nadeem Bhatti, Training Consultant, Saudi Industrial Development Fund

January 27, 2014

Update on Zakat and Income Tax Regulations in KSA

Nauman Ahmed, Partner, Deloitte & Touche, ME Ebrahim Baeshen, Partner, KPMG

February 24, 2014

Financing Corporate Growth & Increasing Shareholders' Value

Muazam Ali Shah, CFO, Gulf Union Foods Company Paul Gay, Group CFO, Almarai

April 26, 2014 Improve your Financial Modeling & Equity Valuation

Asad Zain, Head of Planning of Olayan Group Aakif Hasnaat, Group Financial Planning Manager, Olayan Group


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CPD Committee Eastern Province The Committee consists of the following members: 1. Nabeel Najam – Chairman 2. Shahid Murad - Nominee from MC 3. Amir Waheed Ahmed 4. Abdul Ghani 5. Tariq Naeem 6. Uzair Ashraf 7. Zeeshan Khurram 8. Faisal Rashid 9. Asim Rafat Khan 10. Umair Murtaza The Committee organized the following three CPD seminars during the year:

Date Topic Speaker

November 28, 2013 Fair Valuation – Concepts and Challenges

Abid Moosa, Assistant Director, Deloitte’s Financial Advisory Services

January 2, 2014 Islamic Finance – Essentials and Islamic Products

Irshad Mahmood, Director, PricewaterhouseCoopers Bahrain

June 5, 2014 Withholding Income Taxes – Concepts, Applications and Challenges

Javed Aziz Khan, Executive Director, Ernst & Young Khobar

Joint CPD Programs with Pakistan Accountant Forum (PAF), Jeddah In accordance with MoU signed with PAF to conduct joint seminars and events, a joint committee was formed which consists of four members from both sides: 1. Mazhar Lodhi (PAF-J) – Chairman

2. Mohammed Asif (PAF-J) 3. Muhammad Anis (PAF-J) 4. Ali Adnan Syed (PAF-J) 5. Ashfaq Bataviya (ICAP KSA)- Secretary 6. Saleem Ayub (ICAP KSA) 7. Faraz Inam (ICAP KSA) 8. Asif Riyaz (ICAP KSA)


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The Committee organized the following four CPD seminars during the year:

Date Topic Speaker

September 26, 2013 Fair Valuation - Concepts and Challenges Munish Mohendroo & Abid Moosa, Deloitte’s Financial Advisory Services

November 11, 2013 IFRS Convergence Yusuf Hasan, Partner, KPMG, ME

December 16, 2013 Accounting for financial instruments under IAS 39 with an outlook to IFRS 9

Zulfiqar Unar, Senior Manager, PWC, Dubai

January 29, 2014 The 3 Spheres of Productivity: Spiritual, Physical and Social

Mohammed Faris, Productive Muslim Ltd

February 24, 2014 Cash Flow Management Khurram Khan, ATS

May 26, 2014 Saudi Tax and Income Tax – An Overview

Mohammed Desin, Ernst & Young, Jeddah

Placement Committee The Committee consists of the following members: 1. Umair Murtaza – Chairman

2. Shahid Murad - Nominee from MC 3. Ashfaq Bataviya 4. Asim Raffat Khan 5. Kashif Ilyas 6. Faisal Rashid

Main objectives of the Placement Committee are as follows:

Source placement opportunities in KSA and identify suitable candidates for those positions and facilities perspective employer/perspective employee interaction to their mutual benefit

Maintain an up-to-date repository of CV’s of Pakistani accounting/finance fraternity for easy access by prospective employers.

Activities to date by Placement Committee:

Creation and management of database of CV’s.

Actively referred candidates to opportunities identified by members/organizations.

Organized interview calls for a significant number of candidates in various Saudi companies.

Successfully placed number candidates in various Saudi companies.


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The Committee is actively working on the project of automation of databank including by creating an ICAP Middle East Job Portal for ICAP members and students in KSA and other GCC countries. The ICAP UAE Chapter has also agreed to support this important project. Through this portal, employees and employers will be able to proactively interact with each other.

Media and Communications Committee The Media and Communications Committee consists of the following members: 1. Aakif Hasnaat – Chairman

2. Umair Murtaza – Secretary 3. Khurram Amanullah - Nominee from MC 4. Asher Noor 5. Taha Ali Khan 6. Talib Adeelzeb Iqbal

The principle objective of Media and Communication Committee is to service the members, potential members and professional accountants at large by developing and thereafter managing the following:

ICAP KSA Chapter’s website (www.icapksachapter.org)

Presence on social media such as Linkedin (around 300 members), Facebook (around 500 members) etc.

so as to:

communicate with them,

share useful and knowledge resources,

share news and updates,

communicate about upcoming events,

obtain feedback on the ongoing events and technical issues,

share the videos of the seminars held; and

foster networking amongst the members and non-members through social media presence.


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Presenters at CPD Events

Tim Douglas

Zulfiqar Unar

Dr. Nadeem Bhatti

Dr. Yahya Aljabr

Khaled Aladdem

Armughan Kausar

Noman Ahmed

Ebrahim Baeshen


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Aakif Hasnaat

Asad Zain

Paul Gay

Muazam Ali Shah

Abdulwahid

Irshad Mahmood

Javed Aziz Khan

Abid Moosa


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Yusuf Hasan

Abid Moosa and Munish Mohendroo

Zulfiqar Unar

Khurram Khan

Saleem Desin

Mohammed Faris


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THIRD SAUDI- PAK ACCOUNTANCY SYMPOSIUM IN RIYADH On May 15, 2014, the Institute of Chartered Accountants of Pakistan (ICAP) KSA Chapter and Saudi Organization for Certified Public Accountants (SOCPA) successfully organized prestigious event “Third Annual Saudi-Pak Accountancy Symposium” at Ritz Carlton Hotel Riyadh. The auditorium was full to its capacity and the audience included cream of the town. Besides ICAP members working in Riyadh, Jeddah and Eastern Province, the event was also attended by a large number of SOCPA members and other finance professionals. This year the symposium theme was “Financial Leadership – The Way Forward” which deliberated on leadership attributes to drive the organization to next level. It was a good show of strong bondage between ICAP and SOCPA endeavoring to bring enhance technical cooperation and mutual knowledge sharing in the field of accountancy and finance. The prominent feature of the event was the Award Ceremony to acknowledge and appreciate the lifetime contributions of four selected names in various segments of Finance. The Most Valued Contribution to the Profession (MVCP) Awards were given to Dr. Umar Chapra for Islamic Economics, Dr. Abdulrahman Alhumaid for International Financial Reporting Standards, Mr. Tariq Javed for Banking and Finance and Dr. Ahmad Almeghames for Accounting and Auditing.

The distinguished speakers included H.E. Eng. Abdulaziz Bin Abdullah Al-Zamil (Chairman of Zamil Group and former Minister of Industry & Electricity), Honorable Khayyam Akbar (Pakistan’s Deputy Ambassador to KSA), Dr. Muhammad Umer Chapra (renowned Economist and Advisor at IDB), Dr. Ahmed Almeghames (Secretary General SOCPA), Mr. Naeem Akhtar Sheikh (President ICAP), partners from the Big 4 accounting firms, leading CEOs/CFOs and a number of high profile finance and industry executives.


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The audience was thoroughly captivated by the debates followed by question-answer session. Areas like IFRS transformation agenda for Saudi corporates, Cloud computing, good corporate governance, ethics, operational efficiencies, innovation, were the focal point of discussion by other speakers. The event ended on high note with the expectation that will certainly provide platform for out of the box thinking and strategic initiatives. The distinguished speakers were presented with shields as a token appreciation and thanks and the Symposium ended with a lavish dinner. Participation certificates were also issued to all attendees.

From R to L: Dr. Ahmad Almeghames, Mr. Naeem Akhtar, Dr. M. Umer Chapra, H.E. Eng. Abdulaziz Bin Abdullah Al-Zamil, Dr. Abdulrahman Alhumaid, Mr. Khayyam Akbar, Mr. Tariq Javed

H.E. Eng. Abdulaziz Bin Abdullah Al-Zamil, Chairman

Zamil Group

Dr. M. Umer Chapra, Advisor, IDB

Dr. Ahmad Almeghames, Secretary General, SOCPA

Khayyam Akbar, Deputy Ambassador of Pakistan in KSA


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Naeem Shaikh, President, ICAP

Adrian Flowers, CEO, SABB Takaful

Paul Louis Gay, Group CFO, Almarai

Gavin Steel, Partner, Head of Accounting Advisory Services, PWC, Middle East

Riaz Khan, VP and Head of IT Operations, Bank Aljazira

Umair Murtaza and Aakif Hasnaat

Group photo of all speakers, distinguished guests with Management / Organizing Committee


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The Great Debate : “Developing Good Financial Leaders: Nature or Nurture?”

Dr. Yahya Aljabar, Associate Professor Accounting, King Saud University /

Muhammad Iqbal, President ICAP KSA Chapter

Khaled Aladdem, Assistant Professor Accounting, King Saud University

Imran Iqbal, Partner, Ernst & Young, Middle East, EY

Khalil Al Sedais, Partner / Head of Audit, KPMG

Muhammad Noman Ansari, Group Treasurer and Head of Corporate Finance, GM, STC


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ICAP KSA Chapter’s 3rd Family Gala in Riyadh ICAP KSA Chapter organized its 3rd Family Gala on February 28, 2014 in Riyadh. It was a blissful scene that night; open air arrangement, mildly cool weather, fresh breeze, olfaction stimulated by the aroma of simmering BBQ while the sight with that of glowing and gleeful faces of one’s children giggling and playing here or there. The kids were really ecstatic and electrified; jumping on the bouncy castles, sliding down the giant and humongous slide, impatiently standing in queue waiting for their turn to get face painted, shyly shaking hands with the Barney mascot, or standing on the stalls of cotton candy / popcorns.

All through the time, the air was filled with mirthful laughter, spontaneously erupting every now and then except at the time of lucky draw for bumper prizes, when it was replaced by complete and utter silence except for the throbbing of the hearts. This was because the bumper prizes included gold jewelry items, tablets, projector etc. beside several other gifts.

But even for those who were unlucky in the lucky draw, were given gifts i.e. all the attendants. These were carefully assorted for different age categories i.e. for kids there were several types of toys from Toys R Us, for children there were different type of books and for adults they were given choice between coffee makers or rice makers. The event was hosted under the unflinching leadership of ICAP KSA Chapter’s President Muhammad Iqbal Ibrahim and the untiring efforts of Management Committee.

ICAP KSA Chapter is thankful to Ambassador of Pakistan, His Excellency Mr Muhammad Naeem Khan for supporting us in this event and all the events and Mr Tariq Jawed, Senior Advisor and Mr. Jameel Ahmed, Adviser from Saudi Arabian Monetary Agency for gracing the occasion as Chief Guest and Guest respectively. Special thanks is also due to Mr. Amir Rashid (ICAP member), Saudi Orix Leasing and Philips for their generous contributions/discounts towards sponsoring this event. ICAP KSA Chapter is also thankful to the organizing Committee for their relentless efforts to make this event a ground breaking

success despite being busy in their own workplaces. The event was enjoyed by everyone, and all of the members requested that ICAP KSA chapter should continue carrying out such family events.


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ICAP Final Examination Center in Riyadh The ICAP KSA Chapter continues to provide its support in organizing the ICAP Final examinations at Riyadh since June 2012 and the last exams were held in June 2014.

Acknowledgements The Management Committee deeply acknowledges the support provided by the following sponsors in making the Third Annual Saudi-Pak Accountancy Symposium held on May 15, 2014, in Riyadh, a real success:

ACWA Power – Main Sponsor

Ernst & Young

KPMG Al Fozan & Al Sadhan

PricewaterhouseCoopers

Zahid Tractors

Saudi Orix Leasing

AJIL Financial Services

The Management Committee would also like to place on record its sincere gratitude to all members in general and those who served in various committees of the Chapter in particular, for their support, dedication and held they extended in the activities of the Chapter. Here, the Management Committee would specially like to mention the continued contribution made by the following members and friends, without which the successful organization of activities would not have been possible:

1. Amin Qureshi 2. Asher Noor 3. Sohail Nini 4. Atif Rahim Alvi 5. Furqanullah Khan 6. Kashif Zafar 7. Muhammad Farhan 8. Safwat Khalid

The Management Committee would not like to forget the contributions made by all the guest speakers during the CPD seminars in Riyadh, Khobar and Jeddah and would look forward for their participation in the future events. Finally, all these activities would not have been possible without the support of ICAP Council and Management for which we are highly thankful. The Management Committee is also thankful to Mr. Naeem Akhtar Sheikh, President ICAP and Mr. Hidayat Ali, Chairman Overseas Chapters Committee, for talking out time from their extremely busy schedule to visit Riyadh on the occasion of Third Annual Saudi-Pak Accountancy Symposium in May 2014.

Syed Nabeel Ahmed receiving shield on behalf of ACWA Power, Main Sponsor


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Future Plans

ICAP Middle East Job Portal

4th Saudi-Pak Annual Accountancy Symposium in 2015

Family and regular CPD events in Jeddah and Khobar

Technical Advisory Committee in consultation with SOCPA On behalf of the Management Committee Muhammad Asif Iqbal Secretary Riyadh August 31, 2014


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FINANCIAL

STATEMENTS

JUNE 30, 2014

(UNAUDITED)


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ICAP KSA Chapter Statement of Financial Position 2014

2013

as at June 30, 2014 (in Saudi Riyals)

Accumulated surplus / (deficit) 128,959 94,073

Liabilities Accrued expenses - -

- -

128,959 94,073

Assets Receivable from office bearers (note 4) 128,959 94,073

128,959 94,073

The accompanying notes form an integral part of these financial statements.

President Head of Financial Affairs


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ICAP KSA Chapter

Statement of Income and Expenditure Account

for the year ended June 30, 2014 (in Saudi Riyals)

2014 2013

Receipts

Registration fees for CPD / family events (Note 5) 139,769 78,585

Sponsorship (Note 5) 175,000 100,660

Grant from ICAP - -

314,769 179,245

Payments

CPD, Family, Annual Symposium event related expenses (Note 5)

212,919 124,037

Gifts to participants 56,398 -

Children activities in family event 6,150 -

Website / Job portal development 632 2,277

Annual General Meeting 1,480 1,490

Miscellaneous 2,304 3,937

279,883 131,741

Net surplus for the year 34,886 47,504

Surplus brought forward from previous year 94,073 46,569

Surplus carried forward to statement of financial position

128,959

94,073




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ICAP KSA Chapter

Statement of Cash Flows


2014 2013

OPERATING ACTIVITIES

Surplus for the year 34,886 47,504

Changes in operating assets and liabilities:

Receivable from office bearers (34,886) (46,129)

Accrued expenses - (1,375)

Cash used in operations (34,886) (47,504)

Net cash from operating activities - -

Changes in cash – net - -

Cash at the beginning of the period - -

CASH AT THE END OF THE PERIOD - -




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ICAP KSA Chapter

Notes to the financial statements


1. Status and functions of the Chapter

ICAP KSA Chapter is a non-profit unincorporated association of persons which has been established on August 1, 2011 under the ICAP Guidelines for Overseas Chapters by the Institute of Chartered Accountants of Pakistan (“ICAP”) and under the Memorandum of Understanding with the Saudi Organization for Certified Public Accountants (SOCPA). The Ambassador of Pakistan in Saudi Arabia is the lifetime Patron-in-Chief of the ICAP KSA Chapter.

Main function of the Chapter is to organise / conduct CPD programmes and to provide facilities for interaction among members by arranging regular meetings for the acquisition and dissemination of useful information. It may make representation to the ICAP Council on matters of professional interest in KSA and to offer suggestions for raising the standard and status of the profession. It may also assist ICAP in locating suitable venues for the examination centers and carry out such other functions as may be entrusted by the Institute, from time to time.

2. Significant Accounting Policies:

2.1 Basis of preparation of financial statements:

These special purpose financial statements are prepared in accordance with the requirements of the Chapter`s Constitution.

2.2 Revenue recognition

Contribution from members on account of participation in CPD and other events is recognized on receipt basis.

3. Related party transactions

Related party consists of ICAP and the Managing Committee of the ICAP KSA Chapter. At year-end, there are no

outstanding balances with any related party, except for the balances as disclosed under note 4. Further, the

Managing Committee members are not paid any compensation for performing their functions.

2014 2013

4. Receivable from office bearers

Mohammed Iqbal – President 40,000 -

Khurram Amanullah – Head of Financial Affairs 53,502 -

Muhammad Asif Iqbal - Secretary 1,762 1,360

Shahid Murad – Vice President 15,535 -

Ashfaq Batavia – Joint Secretary 16,160 -

Ali Haider – Chairman CPD Committee, Riyadh 2,000 -

Amir Waheed – Head of Financial Affairs 2013 - 92,713

128,959 94,073


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5. Event wise break-up of Revenue and Expenses:

Activities Receipts Expenses Net

CPD Activities: 68,819 68,406 413

Family Event:

- Registration fees

- Sponsorship

23,700

20,000

74,527 (30,827)

Annual Symposium:

- Registration fees

- Sponsorship

47,250

155,000

132,534 69,716

Total 314,769 275,467 39,302

6. Contingencies and Commitments

The Chapter is not exposed to any contingencies and commitments.

7. Authorization of financial statements

These financial statements have been authorized by the Management Committee of the Chapter on August 31, 2014.


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