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Accounting is the art of, classifying and summarizing in a significant manner. And in terms of money, transaction and events which are, in part of at least, of a financial character, and interpreting result thereof.
ACCOUNTING EQUATION
Equity
Liabilities
Assets
ACCOUNTING CYCLE
Source Document
Journal
Adjustments
Ledger
Trial Balance
SOURCE DOCUMENT
A source document is the document which is made for recording the clinical and as well as accounting data in it for preparation of journal. The data is usually entered in the case report form.
JOURNAL
The book in which transactions are first to be recorded chronologically together with its short description is called journal. It is also called book of original entry or primary entry or preliminary entry.
LEDGER
The book in which all the transactions of the business concern are finally recorded in the concerned accounts in a summarized and classified form is called ledger.
TRIAL BALANCE
An informal accounting schedule or statement that lists the ledger account balances at a point in time and compares the total
ADJUSTMENT
At the end of accounting period when final accounts prepared, some items of revenue and expenses require adjustment e.g. outstanding expenses, prepaid expenses etc. Entries are necessary to record these adjustments and are known adjustments.
FINAL ACCOUNTS
Statement of Financial Position (Balance Sheet) Statement of Comprehensive Income (Profit & Loss) Cash Flow statement Statement of Changes in Equity
APL is proud to be synonymous with a future-oriented outlook, and provide technologically advanced products and services that set the standard in precision and quality. Offering a broad spectrum of petroleum products and having over 350 retail outlets. The Company is developing a network of modern petrol pumps, especially catering to far-flung areas of Pakistan, and are significantly contributing to the development and expansion of the petroleum sector in Pakistan by developing state-of-the-art infrastructure for storage, handling and delivery of petroleum products to local and foreign markets. The Company has also penetrated in the oil export business and, in spite of tough competition from other regional and global players, is in line with the governments policy to take maximum advantage of Pakistans foreign exchange and human resources and its strategic geographical location. Devolping our products and services based on the needs of our valued customers, we approach the challenge of securing their satisfaction and loyalty by focusing on two-way communication, unparalleled performance, and fostering a continuous improvement culture in all areas of our operations. Strictly adhering to highest ethical standards, we believe in community and environmental well being and strive to maintain quality at all levels, as demonstrated by our Quality Policy Statement and the stringent quality objectives we have set for ourselves. With strong support and guidance from our sponsors, the relentless and dedicated efforts of our team of professionals and, above all, the confidence and satisfaction of our customers, we are confidently progressing together on the road to success.
OUR VISION
To become a world class, professionally managed, fully integrated, customer focused, Oil Marketing Company, offering value added quality and environment friendly products and services to its customers in Pakistan and beyond.
OUR MISSION
To continuously provide quality and environment friendly petroleum products and related services to industrial, commercial and retail consumers, and exceeding their expectations through reliability, economy and quality of products and services. We are committed to benefiting the community and ensuring the creation of a safe, responsible and innovative environment geared to client satisfaction, end user gratification, employees motivation and shareholders value.
COMPANY INFORMATION
Audit Committee Mr. Babar Bashir Nawaz
Chairman Non Executive Director
Silk Bank Standard Chartered Bank The Bank of Khyber The Bank of Punjab The Bank of Tokyo Mitsubishi United Bank Limited Share Registrar THK Associates (Pvt.) Limited Ground Floor, State Life Building-3 Dr. Ziauddin Ahmed Road, Karachi. Tel: +92-21-111-000-322 Fax: +92-21-35655595 Legal Advisor Ali Sibtain Fazli Associates Mall Mansion, 30-The Mall, Lahore. Correspondence Address 6, Faisal Avenue, F-7/1, Islamabad Tel: +92-51-2611601 +92-51-2215630-2 Fax: +92-51-2611605 Email: contact@apl.com.pk Website: www.apl.com.pk
Auditors A. F. Ferguson & Co. Chartered Accountants Registered Office 6, Faisal Avenue, F-7/1, Islamabad Bankers Allied Bank Limited Faysal Bank Limited Habib Bank Limited My Bank Limited National Bank of Pakistan NIB Bank Limited
STATEMENT OF COMPLIANCE
Financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984. In case requirements differ, the provisions or directives of the Companies Ordinance, 1984 shall prevail.
BASIS OF MEASUREMENT
These financial statements have been prepared under the historical cost convention except as otherwise disclosed in the respective accounting policies notes.
OPERATING SEGMENTS
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decision. The management has determined that the Company has a single reportable segment as the Board of Directors views the Company's operations as one reportable segment.
PROVISIONS
Provisions are recognized when the Company has a legal or constructive obligation as a result of past events, when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.
STOCK IN TRADE
Stock in trade is valued at the lower of cost, calculated on a first-in first-out basis, and net realisable value. Charges such as excise duty and similar levies incurred on unsold stock of products are added to the value of the stock and carried forward. Net realisable value signifies the sale price in the ordinary course of business less costs necessary to make the sale.
DIVIDEND DISTRIBUTION
Final dividend distributions to the Company's shareholders are recognized as a liability in the financial statements in the period in which the dividends are approved by the Company's shareholders at the Annual General Meeting, while interim dividend distributions are recognized in the period in which the dividends are declared by the Board of Directors.
FINANCIAL INSTRUMENTS
Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument and de-recognised when the Company loses control of the contractual rights that comprise the financial assets and in case of financial liabilities when the obligation specified in the contract is discharged, cancelled or expired. All financial assets and liabilities are initially recognised at fair value plus transaction costs for all financial assets and liabilities not carried at fair value through profit or loss. Financial assets and liabilities carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are charged to income for the year. These are subsequently measured at fair value, amortized cost or cost, as the case may be. Any gain or loss on derecognition of financial assets and financial liabilities is included in income for the year.
FINANCIAL ASSETS
The Company classifies its financial assets in the following categories: investments at fair value through profit or loss, held-to-maturity investments, loans and receivables and available for sale financial assets. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Regular purchases and sales of financial assets are recognised on the trade date - the date on which the Company commits to purchase or sell the asset.
IMPAIRMENT
The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a 'loss event') and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
OFFSETTING
Financial assets and liabilities are offset and the net amount is reported in the balance sheet if the Company has a legally enforceable right to set off the recognized amounts and the Company intends to settle on a net basis or realize the asset and settle the liability simultaneously.
TRADE DEBTS
Trade debts are recognised initially at fair value and subsequently measured at cost less provision for doubtful debts. A provision for doubtful debts is established when there is objective evidence that Company will not be able to collect all amounts due according to the original terms of the trade debts. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganization, and defaults of delinquency in payments are considered indicators that the trade debt is doubtful. The provision for doubtful debts is charged to income for the year. When the trade debt is uncollectible, it is written off against the provision. Subsequent recoveries of amounts previously written off are credited to the income.
REVENUE RECOGNITION
Sales are recorded on dispatch of goods to customers. Commission and handling income is recognised on shipment of products. Income on bank deposits and short term investments is recognised on time proportion basis using the effective yield method. Income on investments in associated companies is recognised using the equity method. Under this method, the Company's share of post-acquisition profit or loss of the associated companies is charged to income, and its share of postacquisition movements in reserves is recognised in reserves. Dividend distribution by the associated companies is adjusted against the carrying amount of the investment.
Gains or losses resulting from re-measurement of investments at fair value through profit or loss are charged to income.
TAXATION
Provision for current taxation is based on taxable income at the current rates of tax. Deferred income tax is accounted for using the balance sheet liability method in respect of all temporary differences arising between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences can be utilized. Deferred tax is calculated at the rates that are expected to apply to the period when the differences reverse based on the tax rates that have been enacted. Deferred tax is charged or credited to income except to the extent that it relates to items recognised in other comprehensive income or directly in the equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.