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PNGRB Reference on Compliance with AS 17 by CGD Entities.
April, 26th 2013

PNGRB reference on compliance with AS 17 by CGD entities

The Petroleum and Natural Gas Regulatory Board (PNGRB), entrusted with the duties, interalia, of regulating the transportation rate for city or local natural gas distribution networks or common or contract carrier pipelines, has recently informed the Institute that in the course of their consultation process, they have come to know that CGD entities i.e. entities engaged in the activities of laying building, operating or expanding city or local natural gas distribution networks are not adhering to the requirements of segment reporting on the ground that they operate in only one segment of business and therefore Accounting Standard 17 (Segment Reporting) that contains provisions for segment reporting does not apply to them.

Upon consideration of the matter, the PNGRB has directed all the CGD entities to ensure compliance with the requirements of AS-17 by reporting their transportation and marketing activities as separate segments for their accounts for the year 2012-2013 and succeeding years.

Against the above background, the PNGRB has requested our Institute to apprise Members of the Institute associated with the preparation of financial statements as well as those who perform the statutory function of audit of accounts of the concerned entities about the stand taken by them as aforesaid.

Attention of Members concerned are accordingly invited to the text of the following communication dated 1st March, 2013 (Ref. No. PNGRB/M(C)/42/2013) of PNGRB. 

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