“Financial reporting plays a critical role in establishing and maintaining the confidence of the investing public. The objective of financial reporting is to provide information useful to providers of capital in their decision making process. Information provided to participants in capital markets must be neutral, reliable, and portray economic results in an accurate and faithful manner.

Just as important, participants must have confidence that this is in fact the case”. Testimony concerning the Role of the Accounting profession in preventing another Financial crisis. - Jun Krocker, Chief Accountant of the US Securities and Exchange Commission.

The Reforms were designed to:- Strengthen stand-setting process; Achieve convergence to high international standards, professional ethics, and accountancy education. Enhance performance by the accountancy profession.

Build investor confidence in financial reporting, in the work of auditors and in financial securities markets world-wide and; Ensure that the international accountancy profession is responsive to the public interest.

The aim of this presentation is to discuss Developing Accountancy Organizations: The African Experience.

The following issues will be discussed during the course of this presentation: A. Definitions B. The African Experience, Why? C. PAFA’s mandate and commencement of business. D. PAFA’s strategy document. E. Professional Accountancy Organization Development Committee Perspectives – African Region. F. Conclusion.

To unfold gradually, as a flower from a bud, hence to bring through a succession of states or stages, each of which is preparatory to the next; to form or expand by a process of growth; to cause to change gradually from an embryo, or a lower state, to a higher state or form of being.

Is someone who has completed formal education and training in one or more profession. The term also describes the standards of education and training that prepare members of the profession with the particular knowledge and skills necessary to perform the role of that profession. In addition, most professionals are subject to strict codes of conduct ensuring rigorous ethical and moral obligations.

Accountancy is the process by which financial information about a business is recorded, classified, summarized, interpreted and communicated. Accounting is the language of business. Accountancy generally produces financial statements that show in money terms the economic resources under the control of management, selecting information that is relevant and representing it faithfully.

An organization (or organisation) is a social entity that has a collective goal and is linked to an external environment. The word is derived from the Greek word organon, itself derived from the better-known word ergon which means “organ” – a compartment for a particular task. The highlighted sentences in the four definitions above when read together brings into proper context the importance of the topic of this presentation.

“As the economies of African countries continue to grow, the contribution of the accountancy profession to sound corporate and public sector financial reporting and good governance is now more important than ever. PAFA will accelerate the development of the profession and strengthen the voice of the profession within Africa and worldwide.” Major General Sebastian Owuama- PAFA President at the launch of PAFA in May 2011 in Dakar, Senegal.

“The formation of PAFA demonstrates the commitment of the African accountancy profession, acting in the public interest, to strengthen its means of collaboration and further develop the profession to support the emerging economies of the continent.“ Mr. Goran Tidson – IFAC President at the launch of PAFA in May 2011.

The World Bank champions strong national accountancy bodies as these are best placed to guide the profession and strengthen transparency and accountability with attendant benefits for governance and the climate for investment.

The contribution of accountancy profession in fulfilling its public interest agenda is key with a focus on –

 Advocating good governance.  Driving accountability from government and supporting public financial management reform.  Ensuring compliance with international standards.  Contributing to strong legal, regulatory, ethical and technological frameworks for businesses.  “Walking the talk” – showing leadership and being a positive role model.

Globally recognized as the influential voice of the African accountancy profession.

 Supporting the formation and development of national professional accountancy organisations to contribute to national, economic and social developments as well as compliance with IFAC’s statements of membership obligations (SMO).

 Advancing the implementation of international standards in financial reporting, auditing, ethics and education through a strong regulatory framework within the African context.

 Promoting a common legal and regulatory framework and an education and training approach that articulates regionally and internationally.

 Demonstrating the value of the accountancy profession to the governments, to the wider continent and within frameworks such as capital markets with the purpose of advancing strong corporate governance and economic development.

 Engaging national regional and international organisations on common development agendas.  Facilitating co-operation amongst professional accountancy organisations to encourage collaboration and a spirit of mental advancement.

1. Legislation to Support PAOs 2. PAO Institutional Governance and Capacity Building 3. Achieving Regional Cohesion

WHICH ELEMENTS OF BEST PRACTICE IN PAO DEVELOPMENT MIGHT BE FURTHERED USING A REGIONAL APPROACH?