According to the SECP here Tuesday, the Cost Order 2008 was issued for five sectors, i.e., fertilizer, thermal energy, petroleum refining, natural gas and polyester fiber, asking them to maintain the cost accounting records and have the said accounts duly audited.

However, the said order were devoid of specific reporting formats/guidelines, therefore the industries, each having unique nature of cost components and reporting structure, were facing practical difficulties in complying with the requirements of said order.

It may be noted that these sectors were in addition to the three sectors, i.e., sugar, cement, vegetable ghee and cooking oil which are already complying with statutory requirements of maintaining and auditing cost records.

The SECP is actively involved in consultation with the Institute of Cost and Management Accountants of Pakistan (ICMAP) and the Institute of Chartered Accountants of Pakistan (ICAP) to develop industry-specific guidelines/reporting format.

Further, the SECP has also sought feedback from various industry stakeholders to bring uniformity to the cost record and cost audit report.

The format and guidelines for fertilizer and thermal energy are at an advanced stage and special orders requiring maintenance of cost record and their audit shall be issued in the near future.

The work regarding the remaining sectors, i.e., petroleum refining, natural gas and polyester fiber, has also commenced and special order in their respects shall be also be issued in due course.

Copyright APP (Associated Press of Pakistan), 2011