1. Accountancy & Audit Reform
Experiences, Challenges and Key Success
Factors
Henri Fortin, Head, World Bank Centre for Financial Reporting Reform

2. Centre for Financial Reporting Reform
Responsible for the WB corporate
financial reporting activities in ECA
(Europe and Central Asia)
Established in 2007
Based in Vienna
External partnerships and support to
other regions and units
18 staff plus network of experts
Comprehensive mix of skills
and experience
Global distance learning studio
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3. CFRR in ECA region
Shared strategic priorities:
Restoring competitiveness
Regional integration
EU membership
EU Member States EU Neighboring Countries
EU Enlargement Countries Other CIS countries
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4. What we do
Diagnostics and publications Technical Assistance
– ROSC A&A reports – In-country support and
– Specialized areas (tax v. fin. advice
reporting, audit oversight – Technical help desk and
systems, etc.) hotline
Partnerships Knowledge Activities
– Globally: IASB, IFAC, etc. – Conferences
– Regionally: EC, FEE, etc. – Workshops
– In country: Government, – Virtual seminars
Professional Accountancy – Newsletter
Organization(s), etc.
– Website
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5. Our approach
• International standards (IFRS, ISA, etc.)
• EU acquis communautaire Tailored support
• other good practices for effective,
sustainable
How? implementation
Peer learning,
practice forum
What?
Knowledge
sharing Lessons from successful implementation
in participating countries
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6. 4 attributes of national statutory frameworks
Completeness
Coherence Adaptability
Differentiation
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7. Financial reporting: why and for who?
Growth and employment generation Improved public administration
Financial stability
and development
Investors
Banks Tax authorities
Reliable,
transparent and
comparable
accounting and
financial
Financial sector reporting
regulators Statistics office
While avoiding
Public at large undue costs
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8. Financial reporting: multiple uses and benefits
Investors / shareholders Make investment decisions
(+ broker-dealers, rating and protect value of assets
agencies, advisers, etc.)
in the information provided
+ Financial-sector
Degree of sophistication
supervision
Financial institutions Make credit decisions,
Trade creditors monitor credit quality/risk
Employees, job applicants Protect rights as creditors
Public procurement agency Ensure solvency of bidders
Tax authorities Monitor/enforce tax collections
(corporate income taxes and VAT)
Statistical agency, central bank Collect data for macroeconomic policies
User(s) Benefit(s)
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9. Financial reporting: by who?
Preparers of the F/S
(joint-stock companies, Investors, lenders,
other enterprises) F/S
other F/S users
FR standards Audit
report
Business Statistics
Accounting
standard Register agency
setter Auditor
Tax
Prof. standards Authority
Registration
Quality control
Discipline
Professional
accountancy Public Oversight Financial-sector
organization(s) System cooperation regulator(s)
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10. Due process for IFRS adoption: example of the EU
Source: European Commission
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11. Financial reporting obligations at EU-level
Micro-entities
+ New directive - 2012
Minimal requirements*
Adapted from European Commission 2011
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12. Marco contable “diferenciado”
Categoría de empresa Normas de información
financiera
Grado de responsabilidad empresarial
Empresas listadas, grandes NIIF
EP, bancos, compañías de
Entidad completas
seguros, etc.
de
Grandes empresas NIIF
interés privadas no listadas, y
público simplificadas
otras EP
PYME “15 PCGA hondureños,
modificados
Obligaciones
Micro-empresa
limitadas o
ninguna de I/F
Source: ROSC A&A Honduras
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13. Sources
ROSC Accounting and Auditing
reports www.worldbank.org/ifa/rosc_aa.html
CFRR Programs
Specifically for Latin
America and the
Caribbean: lessons-
learned publication on
financial reporting reform
http://go.worldbank.org/OFKEZQWME0
www.worldbank.org/cfrr
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14. Obrigado
Dziękuję
ありがとう
Hvala