College of Business and Economics’ Accounting and Finance Department has imparted an in-depth 10-day training in association with Accounting and Auditing Board of Ethiopia (AABE) to orient staff on nitty-gritty of International Financial Reporting Standard (IFRS) to be implemented across the country to optimize financial reporting and reap the cumulative financial harvest. Click here to see the pictures.
The training beginning from 15th to 26th January, 2018, imparted by four AABE resource persons who dwelt upon key components like recognition, measurement, presentation and disclosure requirements of the elements of the financial statements as per IFRS, Mr Lisanework Amare, informed.
The recap program held at Senate Hall on 28th January, 2018. Administrative Vice President, Dr Melkamu Mada, while opening the program said, since the university is an academic institution focusing on study and research, it shouldn’t only depend on theory but on pragmatism to teach how to use resources effectively and efficiently and pass them on to the society.
Stressing further, he said, we must set the precedence in our region by imbibing the essence of IFRS and training on it should be passed on to students, professionals and society. Its statutory compliance will necessitate improved financial reporting and tax planning setting standardized and consistent set of accounting and financial reports for complying with local statutory and consolidated requirements.
Thereafter, AABE’s Financial Reporting Standard Directorate Director, Mr Fetene Zeru, said, it’s unique, because you know, from no system to full-proof system is an stupendous achievement; previously Ethiopia was using Ethiopia Custom and Revenue Authority’s regulation but now we need a standard mechanism for accounting, financial and auditing reporting.
He said, previously Ethiopia was said to be using United States’ Generally Accepted Accounting Principle for check and balance that wasn’t the case but Custom and Revenue Authority’s Reporting Practice was being used for tax purpose. Now we need for general purpose financial report, which anyone can ask for from the reporting entity, thus we are adopting this system.
Unraveling the salient features, he said, it will invariably attract big foreign direct investment and make Ethiopia one among competent nations. It will produce globally competent accounting personnel who can offer their services anywhere in the world.
On challenges, he said, we are encountering resistance from reporting entities, but it’s being legally enforced; reporting entities and individuals refusing to comply with it will be penalized and certificates will be confiscated from those practitioners.
Exuding optimism, he reiterated that we will periodically review reporting entities and those first implementers, where lies significant public interest and around 85% of them have successfully complied with, only few aren’t in accordance with the time scheduled. For this system strategy preparation started way back, but implementation started in July 2015, he added.
Mr Fetene with Mr Lisanework Amare later oriented the gathering on IFRS basics and also answered queries raised. AMU officials, all trainees and others were in attendance.
(Corporate Communication Directorate)