Corporate reporting vital to promote investments

UNCTAD Secretary-General, government ministers, and other high-level officials stressed that a sound corporate reporting infrastructure plays a crucial role in promoting investment, financial stability and development.

They addressed more than 300 experts from about 100 countries, who gathered in Geneva for UNCTAD's 30th anniversary session of ISAR (the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting).

Speakers at the opening panel discussion stressed that many developing countries lack sufficiently robust accounting infrastructure to enable them to apply international standards, and that such standards are frequently necessary to ensure confidence from potential foreign investors.

"Building an effective accounting and reporting infrastructure requires the development of appropriate policies and regulations, a strong institutional base, and adequate resources," said UNCTAD Secretary-General Mukhisa Kituyi.

"One particular area of the accountancy infrastructure challenge is building the necessary human resources," he said.

Secretary of State of the Economy and Finance Ministry of Cambodia, Ngy Tayi said, "The lack of human resources includes inconsistency and lack of an appropriate curriculum at universities, unfamiliarity with accounting and auditing terminology, and lack of a training program for certified public accountants at the national level."

Vice Minister of Finance from Ecuador, Verónica Gallardo said, "The adoption of International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISAs) has had an immediate effect on comparability and transparency."