Click here for search results

Programs Quick Links

Financial Reporting Community of Practice Workshop

25-26 March 2010, Vienna

The Financial Reporting Community of Practice (FRCoP) held a workshop on 25 and 26h March 2010 in Vienna.

Summary


Objectives

Financial Reporting Community of Practice 25 - 26 March 2010 The objectives of the workshop were to:

  1. address issues and challenges on the translation of International Financial Reporting Standards (IFRS);
  2. identify the opportunities for cooperation on the translation of IFRS with other economies;
  3. understand how to work with the International Accounting Standards Committee Foundation (IASCF) on approved translations of IFRS;
  4. consider how to apply different financial reporting requirements to different business entities;
  5. understand the opportunities and challenges of the use of IFRS for small and medium enterprises (IFRS for SMEs); and
  6. identify possible improvements in Kosovo’s draft law in accounting to align with EU and international requirements

This workshop was led by David Cairns and Pascal Frerejacque with a technical assistance provided by Liam Coughlan and Luc Cardinal from the World Bank Centre for Financial Reporting Reform (CFRR). Forty-three participants from the REPARIS economies attended the workshop, representing Ministries of Finance, financial reporting national standards setters, securities regulators, professional accounting bodies and academia.

The workshop included technical presentations, question and answer sessions, and case studies. Technical presentations were made by:

  1. Mr. Ken Creighton, Director of Content Services at the IASCF, on IFRS translation;
  2. Mr. Ivan Čevizović, member of the Croatian Financial Reporting Standards Board, on how Croatia dealt with the translation issues;
  3. David Cairns on case studies about the application of different financial reporting requirements in the EU, the UK, Cyprus and Germany, including current requirements and future proposals;
  4. Mr. Michael Wells, Director of the IASB Education Initiative of the IASCF, on the IFRS for SMEs; and
  5. Mr. Rasmus Sommer , Project Manager of the European Financial Reporting Advisory Group (EFRAG), on the possible use of IFRS for SMEs in the EU.

The Kosovo Financial Reporting Law Working Group also presented some key issues relating tof the current draft law on accounting, financial reporting and auditing, and asked the participating economies how they had addressed these issues in their own economies.

Financial Reporting Community of Practice 25 - 26 March 2010

During the workshop, participating economies gained a better understanding of challenges and constraints around the translation of IFRS, including the requirements of the IASC Foundation to permit only one translation per language. During the second day, participants were provided an overview of IFRS for SMEs as well as the key differences from the EU Fourth and Seventh Directives. Representatives of the Kosovo Financial Reporting Law Working Group benefited from the experiences of other economies in the region to improve and advance further key elements of their draft law.

According to the evaluation results, 80% of participants were very satisfied with the workshop. Participants appreciated most include:

  1. up-to-date technical presentations about international requirements and the EU recommendations;
  2. discussion oo the use of SME standards, including IFRS for SMEs;
  3. of the interactive approach to the workshop; and
  4. the exchange of experiences and knowledge on common issues.

All participants agreed that the FR CoP stimulates learning and enhances knowledge (i.e. best/good practices, international standards) in good/excellent manner as well as promotes professional development, implying that the FR CoP has been moving in a right direction. As suggested by number of participants, it is recommended to include as many case studies as possible in future events.

Results

The community agreed to have a series of GDLN events on the IFRS for SMEs of which the first session is scheduled on April 28, 2010. Tthe community also agreed to address the following issues and activities in the short-term:

  • thresholds for the use of different financial reporting requirements (including IFRS for SMEs).
  • reporting requirements, including the deadlines for
    and the frequencies of reporting
  • the definition of and the appropriate requirements for public interest entities (PIEs)
  • updates on the current status of the content and adoption of EU Directives and other EU regulations
  • the establishment of public registries for financial statements

Agenda Day 1


Day 1: Thursday, 25 March 2010 - Translation of IFRS

Time Activity Objectives and comments Speakers Output
14:00 1. Registration
14:30 2. Welcome Welcome participants and set the context John Hegarty, Head, World Bank Centre for Financial Reporting Reform
14:45 3. Introduction and objectives Objectives of workshop David Cairns
15:00 4. IFRS translation: experience of Croatia Explore issues faced by Croatia and identify approaches and plans to strengthen translation process Ivan Čevizović
Pascal Frerejacque facilitates
Raising awareness of the participants of IFRS translation challenges
15:15 5. IFRS translation – IASCF perceptions Confirm the translation, copyright and other relevant policies of the IASC Foundation
Understand the relationship between the IASC Foundation and economies
Ken Creighton, Director – IFRS Content Services, IASC Foundation
Pascal Frerejacque facilitates
Reference point for discussion of translation, copyright and other relevant issues
16:15 6. Group work organized by the language of the IFRS in which participants are interested
  • What should be translated?
  • What do we have to do translate IFRS?
  • How should economies that share the same or a similar language cooperate?
  • How should economies and the IASCF cooperate?
David Cairns facilitates Action plans:
  • the achievement of a single IASCF-approved translation of IFRS into each language
  • the opportunities for co-operation between economies/countries which have the same or similar language
  • working with the IASCF
17:15 7. Conclusions from day 1 Pascal Frerejacque Next steps for the community and CFRR

Agenda Day 2


Day 2: Friday, 26 March 2010 - Application of different reporting requirements to different business entities

Time Activity Objectives and comments Speakers Output
09:00 8. Introduction and objectives of day 2 Pascal Frerejacque
09:15 9. Deciding which business entities should use which financial reporting requirements: case studies of EU and selected individual EU Member States Introduce matrix of financial reporting needs and portfolio of financial reporting and accounting requirements David Cairns Reference point for discussion of choice of financial reporting requirements for different business entities
09:45 10. Group work by economy on the choice of financial reporting requirements for the following entities in REPARIS economies: listed companies; banks; insurance companies; unlisted companies (large, mediums-sized and small) Each economy completes a matrix showing which entities are allowed or required to follow which requirements in their consolidated and legal entity. If appropriate, distinguish between current requirements and desired requirements. David Cairns and Pascal Frerejacque Matrix of current and desired requirements and practice
11:00 11. IFRS and IFRS for SMEs – opportunities and challenges in REPARIS economies To understand the way in which REPARIS economies may permit or require the use of IFRS for SMEs in their laws and other requirements.
  • Michael Wells, director, IASCF education initiative
  • Rasmus Sonner, project director, European Financial Reporting Advisory Group
  • Pascal Frerejacque facilitates
Reference point for discussion of possible use of IFRS for SMEs
12:00 12. Structured debate on the possible use of IFRS for SMEs and identification of consequential changes to each economy’s matrix of financial reporting requirements To consider which business entities in each economy should be required or permitted to use IFRS for SMEs and, if so, to identify the challenges that the economies and business entities would face. David Cairns and Pascal Frerejacque Updated matrix of financial reporting requirements
Definitions of challenges that economies and business entities would face.
12:45 13. Conclusions David Cairns and Pascal Frerejacque Next steps for the community and CFRR
14:00 14. Structured presentation session by one of the participating economies on issues that have arisen in the context of a draft law that is due to presented to their Assembly at the end of March and group discussion of, and advice on, those issues. To seek the views of participating economies on possible solutions to the alignment of economy laws with European and international requirements Liam Coughlan An improved draft law on accounting/financial reporting for the economy
16:30 15. Review of community activities and work program Suggestions on individual inputs, shared inputs, desired contributions from CFRR and external consultants/organizations Design group Next steps for the community and CFRR.
Revised agreed timetable of inputs and outputs for the FR CoP for 2010 and 2011
Shared record of tasks and commitments

Last updated: 2010-04-11




Permanent URL for this page: http://go.worldbank.org/HRHJHSSG60