News - Real Estate - Finance (February
Jamaica on track with adoption of complex financial reporting rules
Local companies are on track with implementation
of the International Financial Reporting Standards (IFRS) and the International
Standards on Auditing that were adopted in July 2002.
"We are pleased to note that some
companies have published IFRS- compliant financial statements for the first or
second time for the financial year ending 2004," said president of the
Institute of Chartered Accountants of Jamaica (ICAJ) Linroy Marshall.
He was addressing the 40th anniversary luncheon
of the ICAJ at the Holiday Inn Sunspree Resort in Montego Bay on Wednesday.
The new international standards were adopted
as Jamaica's national accounting and auditing standard in keeping with the
global trends towards the harmonisation of accounting and auditing standards.
Marshall said while some of the standards are
fairly complex, the ICAJ was committed to assisting stakeholders in overcoming
the challenges associated with their implementation.
"In this regard, we are very grateful for
the partnership with the Inter- American Development Bank (IDB)," said
The ICAJ is manning a technical project, funded
by the IDB, to bring companies into compliance with the new standards.
The technical co-operation agreement was
signed March 2004.
Funding for the project is provided largely with
US$665,000 from the IDB through its multi-lateral investment fund.
Marshall said the agreement is aimed at
improving the enforcement compliance framework of the accountancy profession to
meet international reporting standards and international standards of auditing.
"The idea is for the institute, through the
dissemination of information through seminars, through workshops and outreach
programmes, to enable companies to bring up to speed with the requirements of
preparing international financial reporting standards," he stated.
Junior finance and planning minister Senator
Deika Morrison, who also addressed the accountants, commended the ICAJ for
adopting the new measures. She said their implementation came at a time when
many countries in North America and Europe were just beginning to consider the
merits of adopting them.
"The initiative by the ICAJ has definitely
placed us among the forerunners for transparency and harmonisation in
presentation of financial statements, and in so doing has served to renew and
heighten confidence in Jamaica's financial reporting and auditing
environs," Morrison noted.
She added that for the financial year ending
March 31, 2004, at least 34 public bodies prepared financial statements that
were IFRS-compliant. "The public sector continues to make advances towards
achieving greater comparability, consistency and credibility of published
financial statements," the junior minister said.