ICAP KSA Chapter First Annual Report KSA Chapter First Annual Report – ... 2011 Practical...

President Message

2012

ICAP KSA Chapter First Annual Report

ICAP KSA Chapter First Annual Report – KSA Chapter

2012

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Table of Contents

President's Review ...............................................................................................................................................................3

Agenda of First Annual General Meeting…………………………………………………………………………………...4

Report of Management Committee ................................................................................................................................5

Financial Statements for the period ended June 30, 2012 ................................................................................ 20


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President's Review It is a matter of great honor for me, as the Founder President of the ICAP KSA Chapter, to welcome you all to the first Annual General Meeting of the Institute’s KSA Chapter and to present the Annual Report for the period ended June 30, 2012.

As you are aware, the first managing committee for ICAP KSA Chapter has been elected for a period of two years starting from August 1, 2011 and therefore the management committee has just completed its first year.

Unlike other similar associations operating in the Kingdom, our Chapter is formed under a Memorandum of Understanding between ICAP and SOCPA

and operates under the formal patronage of the Embassy of Pakistan. We are very thankful to the Secretary General of SOCPA, Dr. Ahmed Al Meghames and His Excellency the Ambassador of Pakistan Mr. Naeem Khan for their enormous support to the Chapter without which it would not have been possible for us to achieve whatever we have achieved in the first year of the Chapter’s existence. I would also like to take the opportunity to thank ICAP and particularly Mr. Rashid Rahman Mir, Mr. Saqib Masood and Mr. Khalid Rahman for providing their full support to the KSA Chapter and its activities.

I am pleased to state that by the grace of Allah the Chapter has achieved quite a lot in its first year including the mammoth task of organizing the ICAP final exams in Riyadh starting June this year. In this brief period of time the CPD committees have organized 7 CPD seminars independently and 4 jointly with the PAF Jeddah. The Placement committee has developed a database of resumes of our members to help facilitate job search and have already successfully placed some of them in good positions in reputable organizations. We have organized a very successful Golden Jubilee event and a number of family events. None of this would have been possible without the tremendous support of our members.

I would like to place on record my sincere gratitude to the members of the management committee, the sub-committees and all other members that have provided us their full support and guidance throughout the year. It is not be possible to list down all the names of these friends and members because this success is a result of the contribution and support of each and every one of you, however, we have included a separate area in this report as well for acknowledgements in an effort to acknowledge the support of some of our key members.

I look forward to your continued support and pray that Insha Allah the coming years would be even more successful for ICAP, its KSA Chapter and its members.

Thank You,

Amin Qureshi President Riyadh September 12, 2012


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Agenda of First Annual General Meeting

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

1. Consideration and adoption of the Report of the Management Committee and the

Financial Statements of the Institute for the period ended June 30, 2012.

2. Any other business with the permission of the Chair.

Muhammad Asif Iqbal Secretary Riyadh September 16, 2012


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Report of the Management Committee Structure The ICAP KSA Chapter was formed w.e.f August 1, 2011 and the following Management Committee was elected unopposed for a period of two years:

The Management Committee is extremely thankful to the Pakistan Ambassador in KSA for agreeing to become the Patron in Chief of the ICAP KSA Chapter. The Management Committee also recognizes the full support of the Saudi Organization for Certified Public Accountants (SOCPA) and its Secretary General, Dr. Ahmad Almeghames, without which successful organization of activities would not have been possible.

Management Committee Meetings During the current period, five meetings of Management Committee were held out of which four were held through teleconference. The physical meeting was held on February 2, 2012 at Riyadh, in which Mr. Rashid Rahman Mir, President ICAP and Mr. Hafiz Mohammad Yousaf, Chairman ICAP Golden Jubilee Committee were also invited.

Muhammad Asif Yousuf (Jeddah) Vice President

Amir Waheed Ahmed (Khobar) Head of Financial Affairs

Muhammad Abdullah Akber (Jeddah) Joint Secretary

Muhammad Asif Iqbal (Riyadh) Secretary

Amin Nazir Qureshi (Riyadh) President


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Meetings with An ICAP delegation of Mr. Rashid Rahman Mir, President, Mr. Hafiz Muhammad Yousuf, Chairman ICAP Golden Jubilee Committee and Mr. Amin Qureshi, President ICAP KSA Chapter visited SOCPA on February 1, 2012 and met the SOCPA team consisting of Dr. Ahmad Almeghames, Secretary General, Dr. Abdulrahman Alrazeen, Head of Standards Convergence Project and Mr. Muhammad Asif Iqbal, Technical Advisor. The meeting was held to review the progress on SOCPA-ICAP MOU signed in April 2011 by Mr. Saqib Masood (then President ICAP) during his visit to SOCPA alongwith Mr. Khalid Rahman, Chairman ICAP Overseas Coordination Committee.

At the outset, Dr. Ahmad Almeghames congratulated ICAP on completing its Golden Jubilee and prayed that it continues its successful journey in the years to come. He also thanked the ICAP KSA Chapter for inviting him as the Guest of Honor at the ICAP Golden Jubilee Seminar at Riyadh.

Dr. Abdulrahman Alrazeen informed that SOCPA has started working on the IFRS Convergence project. Under this historic project, SOCPA plans to issue converged standards after identifying any shariah issues that might affect application of existing requirements of IFRSs in Saudi Arabia. SOCPA is also currently working on issuing additional disclosures as there may be information that is not required to be disclosed under IFRS, but would be of utmost importance to a Muslim user. For this purpose, SOCPA is seeking to engage experts who are both well versed with IFRS and Islamic Accounting Standards. ICAP reiterated its full support to SOCPA for its IFRS Convergence project and offered SOCPA representatives to visit Pakistan or to hold video conferencing to allow SOCPA representatives to meet some of the Pakistani professionals who specialize in these areas. These areas will be explored further for mutual cooperation

Mr. Rashid Rahman Mir specially thanked Dr. Ahmad Almeghames for providing SOCPA's full support in the establishment of ICAP KSA Chapter which has been initiated to conduct professional activities for the mutual benefit of members of both bodies in KSA. He also thanked SOCPA for its support in the conduct of ICAP Final level examinations at Riyadh starting from June 2012.

The meeting ended on a highly positive note and with a firm commitment to develop even closer ties between both professional bodies of brotherly Muslim countries.


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Meeting with Pakistan Ambassador in Saudi Arabia ICAP KSA Chapter President Amin Qureshi, Secretary Muhammad Asif Iqbal and Chairman Placement Committee Muhammad Iqbal visited the Pakistan Embassy in Riyadh on December 5, 2011 and had a meeting with His Excellency Mr. Muhammad Naeem Khan, Ambassador of Pakistan in Saudi Arabia and discussed matters of mutual interest.

During the meeting, the Ambassador was briefed about ICAP, its recently formed ICAP KSA Chapter, its objectives and future plans including organizing the CA final level exams in Riyadh. The Ambassador also requested the officials of ICAP KSA Chapter to conduct awareness sessions regarding CA profession for Pakistani students, which was also agreed by the ICAP KSA representatives. Ambassador also requested to provide support to Pakistani community in job search and counseling activities.

Participation in ICAP Policy Making : Charging Surcharge on Late Payment of ICAP Membership Fees In March 2012, ICAP had solicited comments from members on the matter of "Charging Surcharge on Late Payment of ICAP membership fees". The ICAP KSA Chapter requested the ICAP members in KSA to give their views on this important matter and comments of 25 members were forwarded to ICAP.

Participation in ICAP Policy Making : CPD Directive ICAP CPD Directive was revised by ICAP Council in its 232nd meeting held on March 6, 2012, in which there was a requirement that "On July 1, 2012 any excess / short fall in the CPD account maintained at the Institute shall be deemed zero."

Later, on the recommendation of Management Committee of the ICAP KSA Chapter, the ICAP CPD Committee and Council reconsidered the matter and decided that the excess credit as at June 30, 2012 shall be carried forward to the next rolling period. The Management Committee is extremely thankful to the ICAP Council, specially Mr. Abdul Rahim Suriya, Chairman CPD Committee for reconsidering the matter so quickly.


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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 committees have been formed:

• CPD Committee Riyadh • CPD Committee Eastern Province • Placement Committee

The Management Committee has also agreed that Asher Noor and Assad Abbas Khan will head the Public Relations Committee and IT Committee respectively. These Committees are expected to kick off in the near future.

CPD Committee Riyadh The Committee consists of the following members:

1. Sohail Nini - Chairman 2. Muhammad Asif Iqbal - Nominee from Management Committee 3. Ali Haider - Secretary 4. Abdul Hameed Suriya 5. Kashif Zafar 6. M. Waseem Khan 7. Mustufa Abdul Latif 8. Syed Mohsin Ali

The Committee organized five CPD seminars since its formation in October 2011 as follows:

Date Topic Speaker October 26, 2011 Takaful basic concepts and impact in

the region Mark Stanley, Senior Manager, Ernst & Young, Bahrain

December 26, 2011 Practical implication of Zakat and income tax in Saudi Arabia

Naveed Haider, FCA, Senior Manager, Ernst & Young – Zakat services

February 28, 2012 IFRS Updates Kashif Zafar, ACA, Director, KPMG Riyadh

April 23, 2012 Hedge Accounting - focus on key practical issues

Abdul Majid, ACA, Associate Director Financial Planning & Analysis at ACWA Power International, Riyadh

May 21, 2012 Profitability Driven Activity Based Costing

Farhan Khalil, Chief Financial Officer of The Savola Group – Plastics Sector- Jeddah


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CPD Committee Eastern Province The Committee consists of the following members:

1. Shahid Murad – Chairman 2. Amir Waheed – Nominee from Management Committee 3. Salmaan Ali – Secretary 4. Nabeel Najam 5. Nadeem Asghar 6. Naveed Uddin 7. Syed Junaid 8. Tariq Naeem

The Committee organized two CPD seminars at Khobar since its formation in January 2012 as follows:

Date Topic Guest Speaker March 7, 2012 Significant Differences between SOCPA

Accounting Standards and IFRS Muhammad Asif Iqbal, FCA, Director Accounting Standards SOCPA and Secretary ICAP KSA Chapter

April 18, 2012 Overview of Zakat and Income Tax Regulations in KSA

Javed Aziz Khan , FCA, Director Tax, Ernst & Young, Khobar

Joint CPD Programs with Pakistan Accountant Forum (PAF), Jeddah At Jeddah, the ICAP KSA Chapter is currently organizing CPD programs jointly with the PAF and the following seminars were held at Jeddah:

Date Topic Guest Speaker

27 September 2011 Fraud Prevention Awareness program

Syed Zafar Reza, Chief Audit Executive - Internal audit and Risk Management Services at Saudi Industrial Services Company (SISCO)

10 December 2011 Directors and Officers Liability and Trade Credit

A representative from Marsh Saudi Arabia Insurance & Reinsurance

21 January 2012 Saudi Tax and Zakat - An Overview

Mohammed Saleem Desin, Tax Partner Ernst & Young, Jeddah

29 May 2012 Corporate Performance Management – Conceptual Framework

Irfan Younas Malik - BPM Leader in Emaar, The Economic City


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Placement Committee The Committee consists of the following:

1. Muhammad Iqbal – Chairman (Riyadh) 2. Amir Waheed Ahmed – Nominee from Management Committee (Khobar) 3. Zubair Sobani (Jeddah) 4. Imtiaz Haider (Khobar) 5. Ashfaq Batavia (Riyadh) 6. Rizwan Lari – Secretary (Riyadh) 7. Atif Rahim Alvi (Riyadh)

Main objectives of the committee are as follows:

• Identify opportunities through members (includes part qualified and period completed) in their respective organizations as well as other institutions using their contacts.

• Compile a databank of resumes for members who intend to make a move from their current job and for ones who want to make a fresh start from/outside the KSA.

• Liaising with members and professional recruitment firms for placing qualified professionals in the KSA.

The purpose of the committee is to serve as a link between ICAP members working in various organizations in the KSA who are aware or have any opportunities/openings and the candidates.

Since its inception in December 2011, the Committee has held six meetings, which was actively participated by almost all members.

The committee as per its objectives carried out the following activities:

• Prepared its Terms of Reference • Created a manual database of CVs received from candidates. • Introductory email sent to ICAP members in KSA requesting them to intimate potential

opportunities. • Referred candidates to opportunities identified by members/organizations. • To date received 75 resumes from candidates seeking positions. • Successfully placed 3 candidates in positions notified to PC.

The committee is actively working on the project of automation of databank including by creating an exclusive Job Portal for ICAP members and students in KSA. Through this portal, employees and employers will be able to proactively interact with each other.


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Presenters at past CPD events

Mark Stanley presented during the 1st CPD event at Riyadh

Naveed Haider presenting during 2nd CPD event at Riyadh

Kashif Zafar presenting during 3rd CPD event at Riyadh

Abdul Majid presenting during 4th CPD event at Riyadh

Farhan Khalil presenting during 5th CPD event at Riyadh

Muhammad Asif Iqbal presenting during 1st CPD event at Khobar

Javed Aziz Khan presenting during 2nd CPD event at Khobar

Irfan Younas Malik presenting during 4th CPD event at Jeddah


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ICAP Golden Jubilee Event To celebrate the historic occasion of ICAP Golden Jubilee, the ICAP KSA chapter organized the First Pak-Saudi Accountancy Seminar on February 1, 2012 in Riyadh by. The seminar was held at a local five star hotel and was attended by more than 175 people relevant to the accountancy profession. A large number of Saudi finance professionals also attended.

Speakers at the seminar included His Excellency Muhammad Naeem Khan, Ambassador of Pakistan to Saudi Arabia, Dr. Ahmad Almeghames, Secretary General of Saudi Organization for Certified Public Accountants (SOCPA), Dr. Said Al Shaikh, Majlis As Shura Council member and Chief Economist at National Commercial Bank, Mr. Rashid Rahman Mir, President of ICAP and Mr. Hafiz Mohammad Yousaf, Chairman ICAP Golden Jubilee Committee. A very engrossing one hour interactive panel discussion took place involving leading Big 4 managing partners from the Middle East and KSA.

A lavish dinner, mementos to senior members of ICAP and lucky prize draws were the other highlights of the evening that ended on a very high and positive note.

Mr. Rashid Rahman Mir appreciated the excellent efforts of the ICAP KSA Chapter Management Committee in organizing the ice-breaking event in KSA at such a large scale. Mr. Yousaf acknowledged that it was one of the very best events organized by ICAP Overseas Chapters.


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ICAP Final Examination Center in Riyadh A significant number of ICAP students are presently employed in KSA. Due to difficulties in appearing for their C.A. Final Examination in Pakistan, like obtaining leave from employers, financial constraints and travel-related issues often pose genuine problems for these students. The ICAP KSA Chapter after its formation, kept this item at the top of its agenda and with the support of SOCPA and Pakistan Embassy, was able to achieve this challenging objective and the ICAP exams were carried out in June 2012.

The ICAP KSA Chapter with the active support of some senior ICAP members in Riyadh supervised the process in the presence of ICAP examination staff. ICAP KSA Chapter is extremely thankful to ICAP for reposing confidence in the most important and sensitive activity of ICAP. It is also thankful to SOCPA who provided its support in arranging logistics for exams like arranging visa for ICAP staff and examination venue.

The ICAP KSA Chapter expects that more and more students will take benefit of this facility and appear for their exams in December 2012 attempt.

Family Events ICAP KSA Chapter organized the first Eid Milan Family Get-together on Wednesday, November 16, 2011 in Riyadh. The event turned out to be a huge success as a big number of members participated with their families and the total turnout was 150 plus. A number of amusement activities for children were organized as well (including magic show, jumping castle etc.) which were thoroughly enjoyed by all.

Another family fun mela was organized by the ICAP KSA chapter in Riyadh on 29 March 2012. It was participated by more than 100 chartered accountants and students and other finance professionals along with their families. The family fun mela was followed by a lavish dinner and lucky draws in which many expensive gifts were awarded to the lucky winners. Each attendee couple and each child were also given welcome gifts.


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Acknowledgements The Management Committee deeply acknowledges the support provided by the following sponsors in making the ICAP Golden Jubilee Seminar on February 1, 2012 in Riyadh, a real success:

• AJIL Financial Services Group • Deloitte & Touche Bakr Abulkhair & Co. • Ernst & Young

• KPMG Al Fozan & Al Sadhan • Pricewaterhouse Coopers • Philips Electronics Middle East &

Africa BV - Saudi Branch

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 help 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:

• Muhammad Iqbal • Asher Noor • Assad Abbas Khan • Sohail Nini • Shahid Murad • Ashfaq Batavia

• Furqanullah Khan • Sohail Akhtar • Salmaan Ali • Ali Haider • Atif Rahim Alvi

The Management Committee would not like to forget the contributions made by all the guest speakers during the CPD seminars at Riyadh, Khobar and Jeddah and would look forward for their participation in the future events.

Finally, all these activities would not have been possible had the ICAP Council not supported the idea of establishing Overseas Chapters for which we are highly thankful to Mr. Rashid Rahman Mir, President, Mr. Saqib Masood, Immediate Past President, Mr. Khalid Rahman, Chairman Overseas Coordination Committee, Mr. Hafiz Mohammad Yousaf, Chairman ICAP Golden Jubilee Committee for their full continued support. The Management Committee would also like to take this opportunity to express its appreciation to Mr. Shoaib Ahmed, Secretary, Mr. Omair Jamal, Secretary Overseas Coordination Committee, Mr. Faheem Siddiqi, Head of IT, Mr. Asad Shahzad, Publications Incharge and other support staff, for their help in formation of Chapter and organization of Golden Jubilee Seminar at Riyadh.

Future Plans • KSA Chapter website • Job Portal • Second Pak-Saudi Accountancy Seminar in February 2013 • Family events at Jeddah and Khobar

On behalf of the Management Committee Muhammad Asif Iqbal Secretary Riyadh, September 12, 2012


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FINANCIAL

STATEMENTS


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ICAP KSA Chapter Statement of Financial Position

as at June 30, 2012 (in Saudi Riyals)

Accumulated surplus / (deficit) 46,569

Liabilities Accrued expenses 1,375

Payable to members -

1,375

47,944

Assets Receivable from office bearers (note 4) 47,944

Cash in hand -

47,944

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 period August 1, 2011 to June 30, 2012 (in Saudi Riyals)

Revenue

Registration fees 80,340

Sponsorship 84,927

Grant from ICAP 35,000

200,267

Expenses

Dinner 85,126

Gifts to participants 34,964

Gifts to speaker 3,193

Travel cost of speakers 1,900

Printing 1,950

Media Coverage 1,200

Photography / Video 4,250

Backdrop 3,200

Registration persons 2,700

Children activities 10,350

Website domain 375

Misc 4,490

153,698

Net surplus / (deficit) 46,569


President

Head of Financial Affairs


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ICAP KSA Chapter Statement of Cash Flows For the year ended June 30, 2012 (in Saudi Riyals)

OPERATING ACTIVITIES

Surplus for the period 46,569

Changes in operating assets and liabilities:

Receivable from office bearers (47,944)

Accrued expenses 1,375

Cash used in operations -

Net cash from operating activities -

Changes in cash – net -

Cash at the beginning of the period -

CASH AT THE END OF THE PERIOD -


President

Head of Financial Affairs


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ICAP KSA Chapter

Notes to the financial statements

for the period August 1, 2011 to June 30, 2012 (in Saudi Riyals)

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).

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 are not paid any compensation for performing their functions.

4. Receivable from office bearers

Amir Waheed

39,350

Muhammad Asif Iqbal

8,594

47,944

The above represents funds lying with the Head of Financial Affairs and Secretary as custodians of the Chapter, as authorized by the Managing Committee.


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5. Contingencies and Commitments

The Chapter is not exposed to any contingencies and commitments, except for a payment of SAR 1,200 to be made for development of website of ICAP KSA Chapter.

6. Authorization of financial statements

These financial statements have been authorized by the Management Committee of the Chapter on September 12, 2012.

President Head of Financial Affairs

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