CASL confab focuses on improving financial reporting

The greater role the accountancy profession can play across the Asian region to improve the quality of financial reporting, and foster transparency specially among the public sector was highlighted at the recently concluded three-day Financial Reporting for Economic Development Conference hosted by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) in Negombo.

While acknowledging the important role that the accountancy profession already plays in the region in improving the quality of financial reporting, and fostering transparency in the private sector, senior World Bank official Filly Sissoko said the profession has to play a greater role to foster and improve these areas in the public sector.

"There are significant challenges in public financial reporting. A recent review of the PEFA assessments in the region showed that budget preparation processes are comparatively stronger than budget execution and oversight, which are the main areas of expertise of the accountancy profession," he told the conference which was organised by the International Federation of Accountants, the Confederation of Asian and Pacific Accountants and the World Bank.

Sissoko, the Manager of the South Asian Regional Financial Management of the World Bank, proposed three areas where change should begin.

Outlining his proposal, the World Bank official said that it was vital to incorporate public sector subjects in accounting professional education, so that technicians and professional accountants are adequately equipped to serve the public sector.

"Second, there are only a limited number of professional accountants working in the public sector.

The profession should put in place initiatives to develop more professionals and technicians to serve the private and public sectors," he said.

The third was the regulation of the accountancy profession. "As the profession provides an important public service, it is imperative that it acts and serves in the public interest. Therefore more oversight from the public sector in the management of the accountancy profession will strengthen and reinforce this public and private partnership," he added.

The conference which convened some 150 regulators, policy makers, business leaders, academics and professionals from across Asia and complemented with a galaxy of high-profile and international renowned accounting and financial personalities who shared their views and insights.