Scribd Logo
Upload

Welcome to Scribd!

  • Comments On Accrual Based Accounting SOPs-Salman SB

    Uploaded by

    Muhammad Ezaan
    12 views2 pages
    The document provides 14 suggestions for improving the draft SOP on Accrual Based Accounting: [1] Add more details to the chart of accounts; [2] Define accounting terms; [3] Specify asset capitalization and depreciation policies; [4] Add an asset impairment and revaluation policy; [5] Name the required financial statements; [6] Address treatment of government grants; [7] Include contingencies treatment; [8] Assign responsibilities for data entry; [9] Add sample entries for each wing; [10] Specify user access rights; [11] Define voucher review/approval processes; [12] Set a deadline for previous year claims; [13] Establish data entry/

    Original Description:

    Original Title

    Comments on Accrual Based Accounting SOPs-Salman Sb

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document provides 14 suggestions for improving the draft SOP on Accrual Based Accounting: [1] Add more details to the chart of accounts; [2] Define accounting terms; [3] Specify asset capitalization and depreciation policies; [4] Add an asset impairment and revaluation policy; [5] Name the required financial statements; [6] Address treatment of government grants; [7] Include contingencies treatment; [8] Assign responsibilities for data entry; [9] Add sample entries for each wing; [10] Specify user access rights; [11] Define voucher review/approval processes; [12] Set a deadline for previous year claims; [13] Establish data entry/

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    12 views2 pages

    Comments On Accrual Based Accounting SOPs-Salman SB

    Uploaded by

    Muhammad Ezaan
    The document provides 14 suggestions for improving the draft SOP on Accrual Based Accounting: [1] Add more details to the chart of accounts; [2] Define accounting terms; [3] Specify asset capitalization and depreciation policies; [4] Add an asset impairment and revaluation policy; [5] Name the required financial statements; [6] Address treatment of government grants; [7] Include contingencies treatment; [8] Assign responsibilities for data entry; [9] Add sample entries for each wing; [10] Specify user access rights; [11] Define voucher review/approval processes; [12] Set a deadline for previous year claims; [13] Establish data entry/

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 2

    Comments on Accrual Bases Accounting SOPs

    The draft SOP prepared for Accrual Based Accounting (ABA) is a good effort of the relevant
    team/resource(s) who work on it. However, I would like to share the following suggestions
    which may be considered for incorporation after approval of DG (F&A):

    1) Chart of Accounts to the extent of some possible levels/digits may be added for clarity
    of Codes pertain to Assets, Liabilities, Income/Receipt and Expense heads. Further
    categorization/classification of the above four basic elements may be added.

    2) A chapter/section of definitions pertain to some specific terms such as Asset, Liability,


    Income, Expense, Accrual, Provision, Prepayment, Depreciation, Amortization, CapEx
    and OpEx may be added for understanding of the users as per best practices.

    3) Asset Capitalization policy, depreciation method and its rates on different categories of
    assets may be addressed.

    4) Impairment and Revaluation of Assets policy may be added under ABA system.

    5) Names of the Financial Statements including Balance Sheet, Receipts & Payments
    Account, Cash Flow Statement, Statement of Comprehensive Income and General Fund
    Statement etc may be added along with the time and period of preparation.

    6) Treatment of Government grants/receipts against budget and receipts from donor


    agencies against specific DLIs may be covered. The ICAP has prescribed "Guideline for
    Accounting and Financial Reporting by Non Profit Organizations (NPO's)”, whether it is
    applicable to BISP or not. Likewise IAS-20 also talks about the recognition of government
    grants. KPMG may be asked that whether we should adopt a General Fund method or
    Deferral Grant method or something different.

    7) Contingencies and their treatment may be added in the SOP.

    8) Role and responsibility of the specific Officer(s) from each wing being responsible to
    enter data or to book accounting entries may be added to make them responsible for
    their work.

    9) Sample ABA entries of each wing may be added in the relevant section just like the
    entries already added in case of UCT and CCT Wings.
    10) Users’ rights of data entry, edition, deletion and procedure for opening of a new
    account head in the Chart of Accounts as per requirement may be addressed.

    11) Posting of vouchers, levels of review and approving authority of voucher within the
    respective wings may be mentioned.

    12) There should be a limitation of date/period to entertain/settle any bill/claim of the same
    financial year. Any claim/bill pertain to beyond financial year should be preapproved
    from the DG (F&A) for further processing.

    13) Cut-off dates for entering and processing of data through accounting software may be
    mentioned for each activity to be performed by different wings.

    14) Procedure and making necessary amendments in the SOP document/manual may be
    added for future.

    You might also like