IFAC Commends ICAJ for Successful Implementation of IFRS

Impressed by the Institute's successful implementation of International Financial Reporting Standards (IFRS), the International Federation of Accountants (IFAC) has asked the ICAJ to share with them the strategy used to implement IFRS locally.

In a letter to the ICAJ President, IFAC requested the assistance of the Institute in preparing a document that describes its strategy in implementing IFRS for the guidance and benefit of IFAC's Developing Nations Task Force. The document is to be used as a template and will be included in IFAC's toolkit, "Establishing and Developing a Professional Accounting Body."

According to IFAC, it was clear that the Institute's efforts were worthy of sharing with IFAC members and potential members. IFAC comprises 160 member bodies representing 2.5 million accountants in 120 countries. The Institute is a member of IFAC.

The Institute is very pleased by this recognition from the world body and believes that we should all be proud to share our strategy with the international community.

The ICAJ adopted International Financial Reporting Standards (formerly International Accounting Standards) and International Standards on Auditing (ISA), in July 2002 as Jamaica's national accounting and auditing standards in keeping with global trends towards the harmonization of accounting and auditing standards.

The ICAJ's implementation strategy was centered around the development of a conversion plan. The plan included, inter alia, undertaking a gap analysis with the support of the World Bank and developing a country action plan. The plan formed the basis of a logistic framework that included a series of outcome objectives and measurement standards used to achieve these objectives.

One very key element of the implementation strategy was broad-based consultation with various stakeholders, including, but not limited to, regulatory agencies, private and public sector interests, members of the local accountancy profession, responsible ministers of government, as well as sensitizing the business community.

A structured and intensive public education and training program was another key area of focus. The Institute was pleased by the response and participation from the various sectors at these training sessions. We believe that a significant contribution to the success of the implementation program was the rate at which members and other participants understood the requirements of the standards and effectively applied them.

A number of significant changes to certain IFRS have been made recently and more changes are likely in the future. Most of these changes are effective for accounting periods beginning on or after 1 January 2005. It is important, therefore, for members and other interested groups to continue to keep abreast of changes to IFRS.

The ICAJ looks forward to the continued support and co-operation of its members and stakeholders and take this opportunity to acknowledge their contribution and participation in ensuring that the transition to IFRS was a success.



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