IDB SUPPORTS ICAJ'S FINANCIAL REPORTING IMPROVEMENT PROJECT

The Institute of Chartered Accountants of Jamaica (ICAJ) will be embarking on a financial system improvement project to strengthen the enforcement and compliance framework of the accountancy profession and to reinforce the integrity of information provided to investors.

The ICAJ is presently seeking donor funding from the Inter-American Development Bank (IDB) through its Multilateral Investment Fund (MIF) for the project.  The funding would be used to support a technical programme to assist chartered accountants, financial sector professionals and other users of financial statements in the application of International Accounting Standards (IAS) and International Standards on Auditing (ISA).  IAS and ISA were adopted by the ICAJ as the national accounting and auditing standards with effect from July 1, 2002.    

The first phase of the project involves the appointment of an independent international consultant to conduct a Review of Observance of Standards and Codes (ROSC), according to World Bank standards, and the development of a Country Action Plan.  This includes an independent review of the level of national compliance with International Accounting and Auditing Standards.  

Mr David Cairns, international consultant and former Secretary General of the International Accounting Standards Committee (now the International Accounting Standards Board, based in the United Kingdom), was engaged by the Institute to conduct the ROSC.  Mr Cairns visited Jamaica recently and carried out a review of published financial statements as well as interviews with regulators, practising members of the ICAJ and accounting professionals in industry and commerce.

ICAJ President, Garth Kiddoe notes that as a result of the demands of the global capital markets and trends in these markets, there is a need for higher standards of disclosure with greater emphasis on the veracity of balance sheet values and more detailed financial reporting as required under International Accounting Standards.

The project, he added, would ensure improvements in the quality and usefulness of financial statements issued by Jamaican businesses. It would also help in building adequate mechanisms for the enforcement of IAS and ISA in Jamaica and would complement the efforts of the Private Sector Organization of Jamaica in promoting and encouraging good corporate governance.

Watch for more in our next newsletter!



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