By Sok Lak
The National Accounting Council, the Kampuchea Institution of Certified Public Accountants and Auditors and Association of Chartered Certified Accountants (ACCA) co-organize to launch National Conference on “Accountancy in Cambodia-Towards Global Standards” on August 12 in Phnom Penh to reflect what Cambodia is being implemented toward the international accounting and financial reporting as well as the reflection of what being done by many countries in region and the world.
Deputy Prime Ministe Keat Chhon, Ministry of Ministry of Economy and Finance, said that accountancy is a very important element in economic and financial sector development process. “It is very important issue in both public and private sectors that we should not overlook in the current context of national and global economic arenas.”
He continued that the economic globalization and recent financial crisis has encouraged the world to pay more attentions on the global standards of accounting and financial reporting. The recent global financial crisis has addressed a strong argumentation of the shortage of common global standards for accounting and financial reporting for countries that have business and economic interdependence which cause those countries affected by that domino of crisis. Therefore, greater countries are giving up their sovereignty and moving forward to adopt the common standard in accounting and financial reporting which called International Financial Reporting Standards (IFRS).
The IFRS has important roles and functions in Cambodia economic context such as (1) facilitate fund raising and efficiently allocate those fund through financial markets and banking systems, (2) networking Cambodia to the world, (3) increase transparency and reduce the complexity of financial reporting, (4) to protect Cambodia’s competitiveness in capital market in long-run. (5) leverage efficiency effectiveness and corporate governance, and (6) attracting foreign direct investment.
To response to these important roles and function, the government implementing the “Financial Sector Development Strategy 2006-2015” and prepare to update to “Financial Sector Development Strategy 2011-2015” which determined that transparent and reliable financial information is preconditions and main element of strangeness of financial market. “Our goal is to have transparent, reliable fairly presented financial reports and develop a simple global monitoring system on financial issues.” He emphasized the presence of the security market would increase the importance of the IFRS.
H.E. Ngy Tayi, Secretary of State for Ministry of Economy and Finance and Chairman of the National Accounting Council (NAC), said that high quality financial reporting plays a vital role in the development of a country’s financial infrastructure and its overall economic progress, improves corporate accountability and transparency, fosters investor confidence in financial information, and it bedrock for the efficient functioning of the financial and capital markets.
Nowadays, Cambodia consider to adopt the International Public Sector Accounting Standards (IPSAS) which are developed by the international Public Sector Accounting Standards Board (IPSASB) as more than 100 countries are placed in application, being adopting and consider take into application for their ministries and government agencies, he emphasized.
In 2009, the NAC issued announcement that CIFRS (full IFRS) shall apply to entities with public accountability with effect from 2012 while CIFRS for Small and Medium Enterprises (SMEs) shall apply entities attaining certain thresholds in terms of annual revenue, asset value and number of employees.
Source: The Southeast Asia Weekly, August 21-27, 2011, Vol. 5, Issue 34, Page 7