Accountancy & Audit ReformExperiences, Challenges and Key SuccessFactorsHenri Fortin, Head, World Bank Centre for Financia...
Centre for Financial Reporting Reform  Responsible for the WB corporate  financial reporting activities in ECA  (Europe an...
CFRR in ECA regionShared strategic priorities:  Restoring competitiveness  Regional integration  EU membership    EU Membe...
What we do  Diagnostics and publications       Technical Assistance  – ROSC A&A reports                 – In-country suppo...
Our approach• International standards (IFRS, ISA, etc.)• EU acquis communautaire                            Tailored suppo...
4 attributes of national statutory frameworks                     Completeness       Coherence                       Adapt...
Financial reporting: why and for who?  Growth and employment generation       Improved public administrationFinancial stab...
Financial reporting: multiple uses and benefits Investors / shareholders                                                  ...
Financial reporting: by who? Preparers of the F/S  (joint-stock companies,                                  Investors, len...
Due process for IFRS adoption: example of the EU                                 Source: European Commission              ...
Financial reporting obligations at EU-level                             Micro-entities                                    ...
Marco contable “diferenciado”                                          Categoría de empresa                 Normas de info...
Sources        ROSC Accounting and Auditing        reports www.worldbank.org/ifa/rosc_aa.html   CFRR Programs             ...
Obrigado  Dziękuję      ありがとう              Hvala
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Session 4C Accountancy and Audit - Statutory Reform - Experiences, Challenges, and Key Success Factors - Henri Fortin

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  • Helping participating countries gain a better understanding of the EU acquis and facilitating the partnerships and dialogue with peer institutions within the EU and globally required to underpin sustainabilityEnabling the identification, development and replication of a common approach to resolving shared reform challengesAssist the participating countries in implementing reforms successfully.
  • IASB (International Accounting Standards Board) issues a standard. EFRAG (European Financial Reporting Advisory Group) holds consultationsEFRAG delivers its advice to the Commission. SARG (the Standards Advice Review Group) issues its opinion on whether EFRAG's endorsement advice is well balanced and objective. Based on the advice of EFRAG and the opinion of SARG, the Commission prepares a draft endorsement Regulation. This means in practice that: ARC (Accounting Regulatory Committee), set up in accordance with Article 6 of the IAS Regulation, votes on the Commission’s proposal. The European Parliament (EP) and The Council of the European Union have 3 months to oppose the adoption of the draft Regulation by the Commission. If the EP and Council give their favorable opinion on the adoption or the 3 months elapsed without opposition from their side, the Commission adopts the draft RegulationSource: European Commission http://ec.europa.eu/internal_market/accounting/docs/ias/endorsement_process.pdf
  • Session 4C Accountancy and Audit - Statutory Reform - Experiences, Challenges, and Key Success Factors - Henri Fortin

    1. 1. Accountancy & Audit ReformExperiences, Challenges and Key SuccessFactorsHenri Fortin, Head, World Bank Centre for Financial Reporting Reform
    2. 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 2
    3. 3. CFRR in ECA regionShared strategic priorities: Restoring competitiveness Regional integration EU membership EU Member States EU Neighboring Countries EU Enlargement Countries Other CIS countries 3
    4. 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 4
    5. 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 5
    6. 6. 4 attributes of national statutory frameworks Completeness Coherence Adaptability Differentiation 6
    7. 7. Financial reporting: why and for who? Growth and employment generation Improved public administrationFinancial stabilityand 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 7
    8. 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) 8
    9. 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) 9
    10. 10. Due process for IFRS adoption: example of the EU Source: European Commission 10
    11. 11. Financial reporting obligations at EU-level Micro-entities + New directive - 2012 Minimal requirements* Adapted from European Commission 2011 11
    12. 12. Marco contable “diferenciado” Categoría de empresa Normas de información financieraGrado 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 12
    13. 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/OFKEZQWME0www.worldbank.org/cfrr 13
    14. 14. Obrigado Dziękuję ありがとう Hvala

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