By Ahmed Qaid Ashaybani Chairman/President of YACPA Republic of Yemen Presentation of Yemen Association for Certified Public Accountants (YACPA) to IFAC/JACPA/WB Workshop Addressing IFAC Statements of Membership Obligations (SMOs) #7 – IFRS Adoption and Implementation Dead Sea, Jordan January 21, 2016. By Ahmed Qaid Ashaybani Chairman/President of YACPA Republic of Yemen

OVERVIEW OF LEGAL AND REGULATORY FOUNDATION IN YEMEN Yemeni Association of Certified Public Accountants (YACPA) was established under the Law No. 31 (1992) relating to accounting and auditing profession in Yemen and superseded by Law No. 26 (1999). Under the law, the membership of YACPA covers all certified public accountants – as such membership in YACPA is compulsory. YACPA members are classified as practicing and non-practicing members.

OVERVIEW OF GOVERNANCE IN YACPA General Assembly Administrative Council / Board President IFAC Task Force YACPA G 20 Training Quality Assurance Ethics Audit Standards Accounting Standards Representational Executive Body Leadership Permanent and Ad-Hoc Committees OVERVIEW OF GOVERNANCE IN YACPA General Assembly, Administrative Council/Board, Chairman/President of YACPA: Permanent and Ad hoc Committees: Accounting Standards Committee: Audit Standards Committee: Ethics Committee: Quality Assurance Committee:   Training Committee: Audit Committee: Exam Committee: YACPA G 20: IFAC Task Force:

IFRS IN YEMEN Law No. 26 (1999) as a regulating tool of the accounting and auditing profession in Yemen, empowers a specific body, entitled the ‘Higher Council of Accounting and Auditing (HCAA) to set accounting and auditing standards. However, to date, this entity has not been established. As such, there is a lack of a legal standard setter to legislate the application of IFRS. How has YACPA been operating to address the lack of the HCAA and the lack of existence of a legally empowered standard setter? YACPA has been proactive in directing members (under its authority all CPAs) to use international standards (IFRS, IESBA Code of Ethics and ISA) and as such, has been acting as an ‘interim standard setter.’

YACPA: Proactivity in IFRS Adoption and Implementation To ensure implementation of IFRS, YACPA works with universities to include international standards in their curriculum and ensures their engagement in Education Committee. YACPA also plays an effective role through the development and delivery of the CPA exam and sees this as a vehicle for IFRS implementation amongst newer members. YACPA works to ensure that not only new members of the profession, but current members of the profession are aware of the standards and of the need for their application through comprehensive IFRS CPD Offerings (IFRS and IFRS for SMEs) for all members. Through YACPA Standards Committee for accounting, auditing and ethics our PAO examines, researches and promotes IFRS, ISA, Ethics, etc. amongst members, regulators, ministries, NGOs and the public.

YACPA: Proactivity in IFRS Adoption and Implementation YACPA maintains relationships and engagement with regulators to ensure compliance with IFRS and other standards and has ensured their inclusion in IFRS-related adoption and implementation efforts. YACPA has sought and achieved government support for the adoption of IFRS (Presidential and Ministerial Decrees). YACPA has convened a diverse group of national stakeholders and in its role in regulating the profession has led negotiations and discussions with IASB in the adoption and implementation of IFRS. Yemen Ministry of Industry and Trade (MIT) is responsible for field supervision (or audit quality assurance) under law. However as this is not implemented in practice, YACPA has created practice review system to ensure application of standards in practice.

WHAT HAS MADE YACPA SUCCESSFUL IN IFRS ADOPTION / IMPLEMENTATION? Focus on IFRS Education & Training Being PROACTIVE and Not Waiting for Things to Change! Dialogue & Relationship with World Bank IFAC Application & Deferment Working with Gov’t & Gov’t Inclusion Maintaining Motivation and Morale Strong Engagement with IASB Being PROACTIVE and not waiting for things to change. Working hard and maintaining motivation and morale during difficult times. Working with government cooperatively and including government in PAO and Committees. Sincere progress on IFRS adoption and implementation came after in-depth discussion with stakeholders Having strong dialogue and working relationship with the World Bank. With the support of the World Bank and in following on the success of the Cairo and Sana’a World Bank Bootcamp Workshops, national stakeholders developed a National Roadmap for the IFRS adoption process As a result, Government authorities have shown keen interest in taking appropriate steps for improving the quality of corporate financial reporting, and the professional accountancy body has recently taken efforts to lead development in this area. With the blessing of the government, YACPA has undertaken agreement with IASB to adopt the standards within Yemen . Engaging strongly with IASB and achieving agreement to access (English and Arabic language versions of the standards) and adopt IFRS on behalf of Yemen. Focusing on IFRS education and training – not only adoption and legislation. To ensure success, YACPA emphasized its education, training and YACPA Institute programs include IFRS YACPA also recognized the importance of IFRS for SMEs and of educating and supporting implementation amongst SME and non-member stakeholders of financial reporting. Applying for IFAC Membership, being deferred and working to implement recommendations – Including IFRS adoption and implementation.

YACPA DEVELOPMENT PRIORITIES AND ACHIEVEMENTS Continue push for comprehensive national legal adoption of international standards (IFRS and ISA) as well as continue YACPA implementation of IASB agreement to adopt and provide Arabic and English language versions of the standards to membership and beyond; Additional strengthening of YACPA’s internal technical and financial capacity – in part through development of YACPA Training Institute which serves to both provide high quality training and CPD offerings as well as a solid revenue stream for YACPA; Inclusion of a requirement for mandatory achievement and system for monitoring of Continuing Professional Development (CPD) within education criteria; and Development of a system of audit quality assurance (QA) – expanding upon YACPA’s current system of peer review.

SO… WHAT IS NEXT FOR YACPA? Aim to be Center of Excellence Focus on IFAC Recommend. Strengthen YACPA Membership Improve Implementation of Standards Strengthen Licensing Regime Strengthen Education Aim to Be Center of Excellence for Yemen Accounting and Auditing Profession 2. Focus on IFAC Recommendations 3. Strengthen YACPA Membership 4. Strengthen Education 5. Improve Standards Implementation 6. Strengthen Licensing Regime   SO… WHAT IS NEXT FOR YACPA?

WORDS OF ACKNOWLEDGEMENT AND APPRECIATION I would like to express my gratitude, appreciation and acknowledgement for the people who have continuously supported our association and work tirelessly to support YACPA attain its objectives and goals. In particular, I would like to acknowledge the following dignitaries: Gabriella Kusz, Moad Arubaidi, Walid Al-Najar (World Bank) and Clare McGuiness (IASB).

THANK YOU! IF YOU HAVE ANY QUESTIONS, PLEASE NOTE THAT I WILL BE AVAILABLE THROUGH WEBEX FOR THIS EVENT.