On June 17 the recent Accounting and Auditing Report on the Observance of Standards and Codes (A&A ROSC) for Armenia was presented at a workshop jointly organized by The World Bank and the Armenian Ministry of Finance. The workshop informed interested stakeholders on ROSC assessments, on specific recommendations, as well as the conclusions of the experts, aimed towards the implementation of the recommendations in Armenia in the sphere of accounting, financial reporting and auditing.
“As Armenia moves towards further reform, liberalization and deregulation to enhance the business environment, improved financial transparency and accounting and auditing practices will be needed to support this process of reform”, said Aristomene Varoudakis, WB Armenia country Manager. “Continuing the strengthening and development of financial reporting, accounting and auditing, and the regulatory framework that governs them, will bring benefits to Armenia and its citizens.”
The publication, issued in English and Armenian, assesses the strengths and weaknesses of the accounting and auditing environment that influence the quality of corporate financial reporting and includes a review of both mandatory requirements and actual practice, as well as sets out policy recommendations to enhance the quality of corporate financial reporting and to foster a financial reporting platform conducive to sustainable private and financial sector growth.
“Transparent and reliable corporate financial reporting is a crucial element of a healthy and responsible private sector, said John Hegarty, Head of the Center for Financial Reporting Reform, to support reforms in this area. “By reducing the risk of financial market crises, it strengthens the domestic financial architecture. Moreover, corporate financial reporting facilitates small business access to credit by lowering high costs of information and borrowing, as well as allows investors to properly evaluate corporate prospects. Overall, it results in better economic integration, both regionally and globally, and may alleviate risks of global financial crises”.
This assessment is part of a joint initiative of the World Bank and International Monetary Fund to prepare Reports on the Observance of Standards and Codes. It has been undertaken in 2007-2008 at the invitation by the Government of Armenia, and has been prepared, through extensive discussions with the Government authorities. The next step will be to develop a detailed strategy and action plan in cooperation with all stakeholders and the Government, to support Armenia’s reform in the area.
A broad range of stakeholders were invited to the event, including representatives of Government bodies, NGOs, donor organizations, organizations providing professional services (audit, consulting companies), as well as the private sector utilizing the mentioned services (banks, insurance companies, companies performing on the Securities market, SMEs). Tigran Davtyan, Finance Minister, and Aristomene Varoudakis, WB Armenia Country Manager, made opening speeches. John Hegarty, Head, CFRR, and Andrei Busuioc, Financial Management Specialist, CFRR, as well as Arman Vatyan, Senior Financial Management Specialist, WB Yerevan Office, made detailed presentations and engaged in discussions with the participants.