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From Diagnostic to Reform. Washington DC – April 4, 2006. David Nagy Financial Management Consultant Europe and Central Asia Region. THE WORLD BANK. Philippines. Malaysia. Hong Kong. East Asia (Thailand). Indonesia. Taiwan. South Korea. - PowerPoint PPT Presentation
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From Diagnostic to Reform
David NagyFinancial Management Consultant
Europe and Central Asia RegionTHE WORLD BANK
Washington DC – April 4, 2006
1990s – Emerging Market Crises and contagion effects
East Asia (Thailand)
PhilippinesMalaysiaHong KongIndonesiaTaiwanSouth Korea
Need for a Strengthened International Architecture
Background:
The G-7, World Bank, IMF: focus on crisis prevention
The Financial Sector Assessment Program—FSAP The Reports on the Observance of Standards and Codes—ROSCs
Background:
FSAP and ROSC
Aim of the A&A ROSC
- help policy makers to establish a corporate financial reporting environment conducive to sustainable economic growth and private sector development
- provide more and better information to markets so that they can price risks more appropriately
Objectives: Avoid:
Origins of the ROSC Program
5
Background:
No reliable financial statements = no efficiency = no economic growth = no reduction in poverty.
The role of the World Bank: Fight against poverty!
The Role of the World Bank
Assessing the Quality of the A&A Framework
International Financial Reporting Standards
International Standardson Auditing
Acquis communautaire Good international practice
Benchmarks for Accounting and Auditing ROSC
The ROSC program: Comprises 12 Fundamental Standards
Securities Regulation
Banking Supervision
Accounting & Auditing
Corporate Governance
Insurance Supervision
Insolvency & Creditor Rights
The ROSC Program
8
ROSC is a the first step in the process of reform
Statutory Framework
Monitoring & Enforcement
Education & Training
Accounting Profession &
EthicsAccounting Standards
Auditing Standards
Financial Reporting Infrastructure (1/2)
9
All supporting pillars need to be strengthened
Statutory Framework
Monitoring & Enforcement
Education & Training
Accounting Profession &
EthicsAccounting Standards
Auditing Standards
Financial Reporting Infrastructure (2/2)
A&A ROSC
Latin America and the Caribbean
Europe and Central Asia
Middle East and North Africa
Africa
South Asia
East Asia
Global Coverage of ROSC
11Source: World Development Indicators Database, World Bank
Global Coverage of ROSC
12Source: World Development Indicators Database, World Bank
A&A ROSC in Europe and Central Asia Region
13
CountryStrategy andAction Plans (CAPs)
The World Bank assisted steering committees in Bulgaria, Romania, Macedonia, and Bosnia and Herzegovina to draft their CAPs.
Support implementation and funding the CAPs - mobilizing financial support from Bank and development partners.
Road to Europe – Program of Accounting Reform and Institutional Strengthening (REPARIS)
CountryActionPlan
From Diagnostic to ReformReform
14
The Lessons Learned
Seven points for success:Country ownershipInvolvement of all interested partiesRealistic timetablePrioritizeDiscussions with counterparts in neighboring countries and EU member statesCooperation with European and international institutionsAddress both statutory and institutional issues. The improved statutory framework must be implemented and enforced.
From Diagnostic to Reform
Road to Europe: Program of Accounting Reform and Institutional Strengthening
Regional Program
16
REPARIS Vienna events
Vienna events
On March 14, 15 and 16, 2006, the World Bank, in collaboration with the European Commission and support from the Austrian Development Cooperation, held a two-day series of workshops and a ministerial conference at the Hofburg Palace in Vienna.
• 65 speakers• 335 participants• Training workshops• Sharing experience
of EU Member States
17
REPARIS secretariat
REPARIS secretariat
The REPARIS secretariat will oversee the following activities:
• Academic Education• IFRS Courses• Tools to enhance statutory audit quality• Coordination of enforcement activities• Twinning and secondment• Facilitation of information exchange and
cooperation,• Etc.
18
Thank you for your attention!
The Advanced Program in Accounting and Auditing Regulationwww.worldbank.org/eca/aa
The Road to Europe: Program of Accounting Reform and Institutional Strengthening (REPARIS)www.worldbank.org/reparis
The Reports on the Observance of Standards and Codes (ROSCs)www.worldbank.org/ifa/rosc.html
For more information, please visit:
Contact: [email protected]
