Assessment of Accounting Period Adjustments in Key Performance Indicators o

Date : Jun 2023 - Jul 2023

<div><p>State Bank of Pakistan (SBP) publishes “Financial Statement Analysis of Companies (non-financial) listed at PSX” on annual and quarterly basis, which provides a reasonably good proxy of the performance of non-financial sector. The financial statements of the companies provides indicative information on the performance of real sector as well as the state of economy which one of consideration for policy making at national level. </p> <p>During aggregation of financial statements of companies with different fiscal year-ends, alignment of their different reporting periods would be considered. Different companies publish annual financial statements with respect to their accounting periods i.e. June, December etc. Aggregating different period ending financial statements pertaining to one sector may inflate or deflate different key performance indicators of the sector, which may have some repercussions for different policy considerations.      </p> <p>In this project, absolute and relative impact in major sectors with different accounting periods will be measured after making accounting period adjustment. Accounting periods of annual aggregated financial statements will be adjusted through quarterly data. June-end quarterly data of 75 percent companies will be mapped from already published annual data and data of remaining companies will be compiled to fill the data gap for analysis.      </p> </div>