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INTRODUCTION

Developing Professional Accountancy Organisations : The African Experience By Major General Sebastian Achulike Owuama ( Rtd ), B.sc, FCA, Immediate Past President, PAN African Federation of Accountants. INTRODUCTION.

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INTRODUCTION

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  1. Developing Professional Accountancy Organisations:The African ExperienceBy Major General Sebastian AchulikeOwuama(Rtd), B.sc, FCA, Immediate Past President, PAN African Federation of Accountants

  2. INTRODUCTION “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.

  3. 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.

  4. IFAC REFORMS 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.

  5. 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.

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

  7. SCOPE 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.

  8. DEFINITIONS

  9. DEVELOP 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.

  10. PROFESSIONAL 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.

  11. ACCOUNTANCY 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.

  12. ORGANIZATION 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.

  13. THE AFRICA EXPERIENCE; WHY?

  14. “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.

  15. “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.

  16. Accountancy and EconomicDevelopment

  17. World Bank Support for Accountancy Development 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.

  18. IFAC MEMBER BODIES – AFRICA

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

  20. 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.

  21. PAFA’s MANDATE AND COMMENCEMENT OF BUSINESS

  22. PAFA STRATEGY DOCUMENT

  23. PAFA VISSION Globally recognized as the influential voice of the African accountancy profession.

  24. PAFA’S MISSION PAFA’s Mission is to work in the public interest by leading and developing the accountancy profession in Africa and delivering value to its members by:

  25. 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).

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

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

  28. 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.

  29. 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.

  30. PROFESSIONAL ACCOUNTANCY ORGANISATION COMMITTEE PERSPECTIVES – AFRICA REGION

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

  32. HOW HAVE OUTDATED OR INADEQUATE LEGISLATIVE FRAMEWORKS AFFECTED EFFORTS TO ESTABLISH PAOs?

  33. HOW HAVE OUTDATED OR INADEQUATE LEGISLATIVE FRAMEWORKS AFFECTED EFFORTS TO ESTABLISH PAOs?

  34. HOW HAVE PAO DEVELOPMENT COMMITTEE MEMBERS AND OBSERVERS DEALT WITH SUCH CHALLENGES IN AFRICA OR ELSEWHERE?

  35. DRAWING FROM YOUR EXPERIENCE, WHAT ARE SOME OF THE SUCCESS FACTORS IN WORKING TOWARD, AND ACHIEVING, LEGISLATIVE FRAMEWORK REFORM APPLICABLE TO THE AFRICAN CONTINENT?

  36. REFLECTING ON DISCUSSION, WHAT RESOURCES, TOOLS, OR GUIDANCE MAY BE AVAILABLE TO ASSIST PAOS AND REGIONAL BODIES IN AFRICA AS THEY WORK TO MODERNIZE REGULATORY AND/OR LEGISLATIVE FRAMEWORKS?

  37. PAO GOVERNANCE AND INSTITUTIONAL CAPACITY BUILDING

  38. WHAT KIND OF CAPACITY CHALLENGES HAVE YOU SEEN FOR PAOS IN THE REGION? HOW HAVE PAO DEVELOPMENT COMMITTEE MEMBERS AND OBSERVERS OVERCOME SIMILAR CHALLENGES WITHIN THEIR OWN COUNTRIES, OR IN COUNTRIES WHERE THEY HAVE PROVIDED TECHNICAL ASSISTANCE?

  39. TECHNICAL CAPACITY INSTITUTIONAL CAPACITY

  40. WHAT WOULD YOU IDENTIFY AS SOME OF THE SUCCESS FACTORS IN STRENGTHENING PAO INFRASTRUCTURE AND CAPACITY?

  41. WHAT MIGHT BE ACHIEVED AT A REGIONAL LEVEL, TAKING INTO ACCOUNT THE DIVERSE NATURE OF A CONTINENT SUCH AS AFRICA?

  42. REFLECTING ON DISCUSSION, WHAT RESOURCES OR APPROACHES MAY BE AVAILABLE TO FACILITATE PROGRESS, EITHER NATIONALLY OR REGIONALLY?

  43. ACHIEVING REGIONAL COHESIONENHANCING REGIONAL COOPERATION

  44. WHAT ARE THE KEY CHALLENGES YOU SEE FACING REGIONAL COHESION AND COOPERATION IN AFRICA?

  45. WHAT LESSONS LEARNED IN OTHER REGIONS MIGHT BE RELEVANT TO REGIONAL BODIES IN AFRICA AS THEY SUPPORT PAO DEVELOPMENT AND GROWTH THROUGHOUT THE CONTINENT?

  46. WHAT WOULD YOU IDENTIFY AS SOME OF THE SUCCESS FACTORS IN BUILDING REGIONAL IDENTITY?

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

  48. CONCLUSION

  49. APPRECIATION

  50. QUESTIONS (IF ANY)

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