1. Accountancy & Audit Reform Experiences, Challenges and Key Success Factors Henri Fortin, Head, World Bank Centre for Financial Reporting Reform

2. Centre for Financial Reporting Reform 2 Responsible for the WB corporate financial reporting activities in ECA (Europe and Central Asia) Established in 2007 Based in Vienna External partnerships and support to other regions and units 18 staff plus network of experts Comprehensive mix of skills and experience Global distance learning studio

3. CFRR in ECA region 3 EU Member StatesEU Neighboring Countries EU Enlargement CountriesOther CIS countries Shared strategic priorities:  Restoring competitiveness  Regional integration  EU membership

4. What we do 4 Knowledge Activities –Conferences –Workshops –Virtual seminars –Newsletter –Website Technical Assistance –In-country support and advice –Technical help desk and hotline Partnerships –Globally: IASB, IFAC, etc. –Regionally: EC, FEE, etc. –In country: Government, Professional Accountancy Organization(s), etc. Diagnostics and publications – ROSC A&A reports – Specialized areas (tax v. fin. reporting, audit oversight systems, etc.)

5. Our approach Knowledge sharing Tailored support for effective, sustainable implementation Peer learning, practice forum Lessons from successful implementation in participating countries International standards (IFRS, ISA, etc.) EU acquis communautaire other good practices What? How? 5

6. Completeness 4 attributes of national statutory frameworks Adaptability Differentiation Coherence 6

7. Investors Banks Statistics office Financial sector regulators Tax authorities Public at large Reliable, transparent and comparable accounting and financial reporting Growth and employment generation While avoiding undue costs Improved public administration Financial stability and development Financial reporting: why and for who? 7

8. Financial reporting: multiple uses and benefits Statistical agency, central bank Tax authorities Make credit decisions, monitor credit quality/risk Protect rights as creditors Investors / shareholders (+ broker-dealers, rating agencies, advisers, etc.) Monitor/enforce tax collections (corporate income taxes and VAT) Financial institutions Trade creditors Employees, job applicants Public procurement agency Ensure solvency of bidders Collect data for macroeconomic policies Make investment decisions and protect value of assets + Financial-sector supervision User(s)Benefit(s) Degree of sophistication in the information provided 8

9. Financial reporting: by who? Preparers of the F/S (joint-stock companies, other enterprises) Auditor Business Register Public Oversight System Financial-sector regulator(s) Tax Authority Statistics agency Investors, lenders, other F/S users Accounting standard setter FR standards Prof. standards Registration Quality control Discipline F/S Professional accountancy organization(s) Audit report cooperation 9

10. Source: European Commission Due process for IFRS adoption: example of the EU 10

11. Financial reporting obligations at EU-level Adapted from European Commission 2011 11 + New directive - 2012 Minimal requirements* Micro-entities

12. Marco contable “diferenciado” 12 Source: ROSC A&A Honduras

13. ROSC Accounting and Auditing reports www.worldbank.org/ifa/rosc_aa.html www.worldbank.org/ifa/rosc_aa.html 13 Sources Specifically for Latin America and the Caribbean: lessons- learned publication on financial reporting reform CFRR Programs http://go.worldbank.org/OFKEZQWME0 www.worldbank.org/cfrr

14. Thank you Merci Мерци Falemnderit Gracias Vielen Dank Спасибо Dziękuję شكرا ありがとう Mulţumesc Obrigado Hvala