Swiss-Polish Cooperation Program Financial Reporting Technical Assistance Project

Transcription

1 Swiss-Polish Cooperation Program Financial Reporting Technical Assistance Project David Cairns and John Hegarty World Bank Centre for Financial Reporting Reform Warsaw, 11 December 2009

2 Presentation Outline» The World Bank s Centre for Financial Reporting Reform» The regional program for new EU Member States» The project for Poland

3 Centre for Financial Reporting Reform» World Bank s Europe and Central Asia (ECA) Region» Responsible for all of ECA s corporate sector financial reporting activities» Supports similar activities in other regions» Mix of skills and experience:» financial reporting regulation and practice» in-depth knowledge of the acquis communautaire» knowledge management and distance learning» drawing on a network of skills

4 Regional program for new Member States» High quality financial reporting an essential underpinning for cohesion and competitiveness in the Single Market» Extensive legal and regulatory reform already undertaken as part of the EU accession process, to comply with the relevant acquis» Further strengthening of institutional and human capacity required for effective implementation and enforcement» The acquis is a moving target, tight deadlines» Financing gap

5 Regional program for new Member States» Implementation agreements with Member States which draw on Swiss Enlargement Contribution funding» Activities at both national and regional level» Complement interventions at Member State level with joint activities to develop common responses to common challenges, exploit synergies» Reinforce, not replace Member State involvement in EU-level discussions and activities» Facilitate speedy replication of good practices developed elsewhere» Flexible programmatic approach» General framework» Annual work programs

6 Key features of the program» Member State ownership and leadership» Comprehensive multi-year program, rather than fragmented individual projects» Beyond compliance to cohesion, competitiveness» Robust results framework, monitoring, evaluation» Integration of policy development, program design and implementation, financing, and accountability to the Member States» A program for partnership, not projects» Program management from WB Office Vienna

7 European Commissioner McCreevy We very much welcome the contribution of the World Bank to promote the use of international standards on auditing in the Member States that joined the European Union after The work of the World Bank greatly contributes to the effective implementation and enforcement of the EU acquis, in particular with respect to public oversight and external quality assurance systems.

8 The simple logic No transparency, no trust; no trust, no credit; no credit, no investment; no investment, no growth! So there is a simple logic: financial reporting is an essential building block for financial intermediation, foreign investment, and sustainable economic development.

9 Financial reporting A fundamental foundation Insolvency & Creditor Rights Corporate Governance Insurance Supervision Banking Supervision Securities Regulation Accounting & Auditing

10 Importance of high quality financial reporting ECONOMIC GROWTH Job Creation Development of Capital Markets Improved Access to Credit Private Sector Growth Accounting and Auditing Financial Sector Development Financial Stability Financial Information

11 The project for Poland» Implementing:» a public oversight system for statutory auditors» a quality assurance system for statutory auditors» Introducing clarified International Standards on Auditing (ISA)» Building capacity for International Financial Reporting Standards (IFRS)» Resolving the relationship between financial reporting and tax accounting» Continuing education for professional accountants» English language training

12 it s not just about IFRSs and ISAs Accounting Standards Statutory & Governance Framework Monitoring & Enforcement Education & Training Accounting Profession & Ethics Auditing Standards

13 but about strengthening all the pillars Accounting Standards Statutory & Governance Framework Monitoring & Enforcement Education & Training Accounting Profession & Ethics Auditing Standards

14 a broad vision of financial reporting» High quality financial statements that meet the needs of:» current and potential investors» other providers of finance» tax authorities» other regulatory and supervisory authorities» those responsible for national statistics and macro-economic data

15 built on a single foundation Financial reports for taxation purposes Financial reports for prudential regulation Financial reports to lending banks Financial reports to capital markets Financial reports as the basis for national statistics Accounting

16 and linking the needs of different users Investors and creditors in capital markets Lending banks Tax authorities Financial statements National statisticians Prudential regulators Public interest

17 Delivering the project for Poland» Regional communities of practice» sharing experiences» learning from experts from the European Commission and around Europe (and elsewhere)» exploring common needs» shared research on shared issues» identifying potential synergies» seeking common solutions

18 Delivering the project for Poland» High quality and practical in-country training based on national needs assessments» clarified ISAs» IFRS» IFRS for SMEs» IFRS for regulators» Development by international experts» Delivery by international and national experts in local languages

19 Delivering the project for Poland» Practical and high quality tools» IT systems and methodologies for public oversight» manuals and methodologies for quality assurance» audit software based on clarified ISAs» an e-learning platform for continuing education

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21 Thematic work programs Implementing a public oversight system for statutory auditors Purpose of the component Target Group Support the implementation of an effective system of public oversight of statutory auditors that complies with the Eighth Company Law Directive in a manner that is cost effective and reflects the characteristics and needs of participating Member States. Members and staff of the public oversight body as well as inspectors undertaking the external quality assurance reviews. Institutional needs assessment Audit oversight workshop Support to the administrative capacity Activity 2009/ and beyond Public register of auditors International conference on public oversight Regional community of practice In-country training for members and staff of the public oversight body

22 Thematic work programs Implementing a quality assurance system for statutory auditors Purpose of the component Target Group Promote improvements in audit quality through implementation of an enhanced and sustainable system of external quality assurance that will deliver high quality inspections consistent with the requirements of the Eighth Directive. Members and staff of the public oversight body; inspectors undertaking the external quality assurance reviews; and individual auditors and audit firms. Institutional needs assessment Audit quality assurance workshop ISQC1 manual National outreach program Support to the administrative capacity Activity 2009/ and beyond Regional community of practice In-country training for quality assurance personnel

23 Thematic work programs Adoption and implementation of ISA Purpose of the component Target Group 1. Achieve among statutory auditors and audit firms a broadly based and in-depth understanding of International Standards on Auditing (ISA) and their application in practice; 2. Achieve a similar level of understanding among external quality assurance inspectors ; and 3. Achieve a high level of understanding of ISA among members of the public oversight body and relevant staff members at the Ministry of Finance. Members and staff of the public oversight body; Ministry of Finance; and members, staff and trainers of the auditors professional association. Regional community of practice on the adoption and implementation of ISA National needs assessment Activity 2009/ and beyond National delivery of ISA training

24 Thematic work programs Enhancing the relationship between financial and tax accounting Purpose of the component Target Group Assist policymakers in reviewing and optimizing the existing tax accounting system; enhance the capacity of tax authorities in implementing reforms resulting form policy choices. Ministry of Finance, tax authorities, and accounting standard setting body. Activity 2009/ and beyond International conference International training In-depth study of the advantages and disadvantages of the existing relationships between financial and tax accounting systems Assessment of in-country training needs and design of the training program In-country training for tax inspectors and tax policy makers

25 Thematic work programs Institutional capacity building regarding financial reporting Purpose of the component Target Group Enhance capacity to participate in policymaking regarding IFRS at the European level and enforce IFRS in a number of stakeholder groups (see Target Group). Ministry of Finance, financial and capital market supervisory authorities, public oversight body, accountants and auditors professional associations, etc. Activity 2009/ and beyond Regional community of practice on the application and enforcement of IFRS in the financial sector Foundation IFRS course National needs assessment National IFRS training course delivery

26 Thematic work programs Continuing education for accounting professionals Purpose of the component Target Group 1. Facilitate the delivery of high-quality continuing education to members of the accountants and auditors professional associations; and 2. Monitor compliance with continuing education requirements. Accountants and auditors professional associations. Activity 2009/ and beyond Agreement on ToR for the development of the technical specifications of the e- learning platform Agreement on ToR for the review of the curriculum and authorization procedures for the continuing education programs Procurement for the e-learning platform, award of the contract, development of the platform Consultations on findings of the review of the curriculum and authorization procedures, finalization of the report, and agreement to relevant changes Further activities specifics will be defined in the annual work programs

27 Thematic work programs Specialized English language and communications training Purpose of the component Target Group Provide participants the opportunity to attend foundation and specialized English language training, as well as training in communications, presentations, and negotiations skills. Ministry of Finance, public oversight body, accountants and auditors professional associations Assessment of training needs Finalization of course design Activity 2009/ and beyond Delivery of the training course

28 Thematic work programs Regulatory framework Purpose of the component Target Group Support policymakers in the area of accounting and auditing. It involves (i) researching financial reporting issues to feed into policymaking activities with a view to identify areas where better regulation and/or enforcement would contribute to a better business environment and (ii) providing hands-on technical assistance. Project stakeholders, SECO, all participating countries, European Commission, etc. Report 1 Design and methodology for preparing an annual overview of the accountancy market Training covering legal drafting techniques Activity 2009/ and beyond Report 2 Specifics will be defined in the annual work programs Report 3 Specifics will be defined in the annual work programs Report 4 Specifics will be defined in the annual work programs

29 Thematic work programs Monitoring and evaluation Purpose of the component Target Group Monitor and evaluate the effectiveness of the program Project stakeholders, SECO, all participating countries, European Commission, etc. Activity 2009/ and beyond Ongoing monitoring and evaluation system measuring implementation progress Accounting and Auditing ROSC