Business News of Friday, 23 November 2012

Source: thebftonline

IFRS defaulters will face sanctions

From 2013, financial reports prepared by both private and public financial institutions without using the International Financial Reporting Standards (IFRS) will not be recognised, Country Director of the Association of Chartered Certified Accountants (ACCA) Mr. Norman Williams has disclosed.

This, he said, is part of sanctions being put in place to ensure strict adherence to the new accounting system to facilitate professionalism and transparency in financial accounting processes in the country.

In this regard, Mr. Williams said ACCA will intensify its capacity building efforts to ensure that most accountants in the private and public sector get familiar with the IFRS.

“Capacity building is our major problem now, but we intend to bridge this gap through frequent sensitisation workshops as we push to adopt the new accounting standard.

“From next year, ACCA plans to go into the rural areas to update District Chief Executives (DCEs) on the project,” he said.

Mr. Williams was speaking at a media round-table discussion for the visit of ACCA’s global President, Professor Barry Cooper, to the country to familiarise with ACCA executives and members.

International Financial Reporting Standards (IFRS) has been designed as a common global language for business affairs to ensure that accounts prepared are understandable and comparable across international boundaries.

The new standards have been introduced due to growing international shareholding and trade, and are particularly important for companies that have dealings in several countries.

Professor Barry Cooper, global President of ACCA, said the outfit continues to play a significant role in development of the country’s economy through the provision of chartered accountants with strong financial backgrounds.

“The contribution and significance of ACCA products should not be underestimated considering the strong economic potential of the country.

He said the country is better-positioned to develop its potentials due to the favourable economic stability, and ACCA is committed toward achieving the aim through financial accounting contributions as well as strong collaborations and relationships.

“There is great demand for accountants, for which ACCA is willing to partner the country in developing and training professional accountants as a way of contributing toward economic development of the country.

“ACCA will continue to support accounting students in the country by providing readily available resources and materials as well as subsidies,” Prof. Cooper noted.

ACCA is the global body for professional accountants and aims at offering business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

The Association currently supports 154,000 members and 432,000 students in 170 countries, helping them to develop successful careers in accounting and business with the skills needed by employers.

It also seeks to enhance the public value of accounting in society through international research, and takes a progressive stance on global issues to ensure accountancy as a profession continues to grow in reputation and influence.