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NOTES TO AND FORMING
PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
211
PAKISTAN OILFIELDS LIMITED
5.
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
The preparation of financial statements in conformity with approved accounting standards requires
the use of certain accounting estimates. It also requires management to exercise judgement in the
process of applying the Group's accounting policies. Estimates and judgements are continually
evaluated and are based on historical experience, including expectation of future events that are
believed to be reasonable under the circumstances. The areas where various assumptions and
estimates are significant to the Group's financial statements or where judgment was exercised in
application of accounting policies are as follows:
i)
Estimated crude oil/gas reserves used for amortization of development and
decommissioning costs - note 4.15 and 15
ii)
Estimated useful life of property, plant and equipment - note 4.13 and 14.1
iii)
Estimated costs, discount and inflation rate used for provision for decommissioning costs
- note 4.8 and 10.2
iv)
Estimate of recoverable amount of investment in associated companies - note 4.2 and 18
v)
Estimated value of staff retirement benefits obligations - note 4.10 and 40
vi)
Provision for taxation - note 4.6 and 36
vii)
Price adjustment related to crude oil sales - note 4.25 and 27
viii)
Impairment of financial assets - note 4.22
ix)
Right of use assets and corresponding lease liability - note 4.29
2020
2019
Rupees ('000)
6.
SHARE CAPITAL
Authorised capital
500,000,000 (2019: 500,000,000) ordinary shares of Rs 10 each
5,000,000
5,000,000
Issued, subscribed and paid up capital
Shares issued for cash
20,200,000 (2019: 20,200,000) ordinary shares
202,000
202,000
Shares issued as fully paid bonus shares
2,636,551
2,636,551
263,655,104 (2019: 263,655,104) ordinary shares
283,855,104 (2019: 283,855,104) ordinary shares of Rs 10 each
2,838,551
2,838,551
6.1
The Company is a subsidiary of The Attock Oil Company Limited which held 149,794,518 (2019:
149,732,558) ordinary shares at the year end.