THE International Federation of Accountants organised a symposium that called
for a rise in the standards of financial reporting in the Association of
Southeast Asian Nations (ASEAN) region. An important step towards more efficient
and integrated capital markets would be the harmonization of standards across
the region, and that, to attract investors, it would help to have a high quality
financial reporting regime and strong corporate governance practices applied
consistently across the ASEAN economies – Brunei, Cambodia, Indonesia, Laos,
Malaysia, Myanmar, the Philippines, Thailand and Vietnam, as well as Singapore.
It was noted that
high quality financial reports are required to provide transparency to investors
which will help minimize information asymmetry between investors and investees
and reduce the level of risk premium attached to investing in emerging markets,
thereby lowering the cost of capital. Singapore is raising the bar
for accounting professionals in Singapore and the region as the first link in
the value chain is the accountancy practitioners and preparers of financial
statements. Singapore established that the Singapore Accountancy Commission in
April this year to oversee the strategic development of its accountancy sector,
and will be launching the Singapore Qualification Program (Singapore QP) next
month to strengthen professionalism among accounting practitioners. The
Institute of Certified Public Accountants of Singapore (ICPAS) will administer
the Singapore QP, and will have the responsibility of disciplining and
maintaining high standards of conduct amongst the Chartered Accountants of
Singapore.
Besides, the
Government is also working closely with its regional counterparts to support
competency development of accounting practitioners across ASEAN economies. ICPAS
is partnering the World Bank to develop a capacity building program for
professional accountancy bodies in the region. The Singapore Accounting and
Corporate Regulatory Authority (ACRA) has benchmarked its audit regulation with
international practices and is active in the international for an on audit
regulation to enhance the quality of audit and with its counterparts in Malaysia
and Thailand, ACRA formed the ASEAN Audit Regulator Group in 2011 to share best
practices and more importantly, help one another increase effectiveness in audit
regulation which has already embarked on initiatives to build capacity in audit
regulation in the region.
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