41st Conference Papers[1]

TABLE OF CONTENTS

1. The Paradox of Climate Change: The Challenge for the Professional.

Presented by: Ibironke Olabamise, National Coordinator, GEF Small Grants Program implemented by UNDP. (Day 1 paper, page 3)

2. Speech by the President/Chief Executive, Dangote Group, Alhaji Aliko

Dangote, CON: The Changing Role Of Chartered Accountants in Value Creation and Business Sustainability. (Day2 paper, page 129)

3. Infrastructure Transformation and Sound Financial Management for Nigeria Socio‐economic Development. Presented by: Dr(Mrs) Okonjo Iweala, the coordinating Minister for the Economy and the Honorable Minister of (Day 2 Paper, page 165)

4. Issues And Challenges Of International Financial Reporting Standards

(Ifrs) Adoption For Emerging Economies by: Obazee Jim Osayande (Day 3, Page 24)

5. The paradox of Climate Change: The Challenge For Professionals.

Presented by: Kighir Apedzan Emmanuel, PhD, FCA, Enironmental Accountant, Nassarawa State University, Keffi (Day 3 paper, Page 80)

6. Performance Measurement in the Public Sector –The Accountability

Challenge. By Sam S.O Afemikhe, (Day 3 paper, page 137)

7. Improving Accounting and Auditing Practices Globally: The Roles of IFAC, Regional Accountancy Bodies and Development Partners, and Lessons from Experience (Day 3, page 186)

The Paradox of Climate Ch Th Ch llChange: The Challenge

for the Professionalfor the Professional

Presented by:Ibironke Olubamise National CoordinatorIbironke Olubamise, National Coordinator,

GEF Small Grants Programme i l t d b UNDPimplemented by UNDP

OutlineOutline Environment and Climate Change

Issues and Challenges

National Efforts Opportunities

Way forward Way forward

Conclusion

Science for the Accountants

The Environment is… Source of raw materials and energy

(non renewable resources);(non-renewable resources);

Provider of services such as theProvider of services such as the maintenance of climatic

t / t bilit d l i l lsystem/stability and ecological cycle (renewable resources) including forest, agricultural land, water etc;

Si k f Sink for waste.

Science for the Accountants

28

Science for the AccountantsMEAN SURFACE TEMPERATURE OVER NIGERIA

y = 0.0244x + 26.09

27 5

28(o

C)

27

27.5

PER

ATU

RE(

AIR TEMPMEAN

26 5

27

RFA

CE

TEM

P

Linear (AIR TEMP)

26

26.5

SUR

26

1951

1954

1957

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

YEARS

Mean surface temperature over Nigeria (Ojo, 2008)

Some factsSome facts• Since 1940 carbon dioxide from fossil fuelSince 1940 carbon dioxide from fossil fuel

has increased from <2 billion tones per annum to nearly 13 billion tonnes per a u to ea y 3 b o to es peannum.

• Over the same period the global surface• Over the same period the global surface temperature has grown by about 0.40C. Th i t id f d• There is very strong evidence of cause and effect.

Some facts (cont’d)( )

• With current trends atmospheric carbon pdioxide will double in next hundred years. And will increase global average g gtemperatures by about 1.0oC.

• A rise of 1°C or 2.5°C does not seem much.A rise of 1 C or 2.5 C does not seem much. • But the difference between the coldest

period of an Ice Age and the warmestperiod of an Ice Age and the warmest period of the subsequent interglacial is only 5 6°C5-6 C.

What are the causes?What are the causes?

• Nature and natural resources are seeing as infinite, free and not to be accounted for,

• Unsustainable exploitation of natural ( i NTFP t h d t )resources (agric, NTFP, watersheds, etc)

• Inappropriate valuation of natural resourcespp p

Results… Deforestation

i l i l di i d l i Biological diversity depletion Drought and desertificationg Land resources degradation

O d fl di Ocean surge and flooding Water and air pollution Urban decay and municipal waste Cli t Ch Climate Change

The effects

Ecological Zones of Nigeria in 1976/78

Ecological Zones of Nigeria in 1995

Effects (cont’d)

A typical desertified environment and typical erosion site

A typical waste dump and yp pdeforested sites

Why do these concern us?

• Threats to live and living• Business opportunities and growthsBusiness opportunities and growths• Loans and Insurance

Wh d h d h• What do we hand over to the next generation (someone says impart before you d h i li i h l ?)depart. what is live without a legacy?)

And for businessAnd for business…

A typical coastal flood

A typical gas flare

ImplicationsImplications

• FloodingFlooding • Crop production

i h l i h i id• Diseases such as malaria, whose incidence is affected by temperature and precipitation,

• Many vulnerable ecosystems and biodiversity will be adversely affected.

• Loss of livelihoods and communities • Economic lossEconomic loss

What is needed?What is needed?• Better informationBetter information

• Stronger mitigation

• Development of adaptation measures.

• Climate Risk Assessment

National efforts Special Climate Change Unit (SCCU) of the

Federal Ministry of EnvironmentFederal Ministry of Environment

Different environment related policies and pregulations

b f l il l i l Party to a number of Multilateral Environmental Agreements (MEAs)

Estimated CostEstimated Cost

• Global annual estimates for adaption as• Global annual estimates for adaption as suggested by UNFCCC could be about $70bn or $100bn (£44bn and £63bn) by 2030$100bn (£44bn and £63bn) by 2030,

• This is the cost of about three Beijing Olympics• This is the cost of about three Beijing Olympics.

• But other scientists have now suggested that theBut other scientists have now suggested that the true annual cost could easily reach $300bn or moremore.

Opportunities for the professionals Clean Development Mechanism and carbon trading

Waste to wealth

Efficient use of natural resources including best practices

Innovative technological development from natural products

Industrialization, trade and investment opportunities (e,g. T i t f fl )Tourism export of flowers)

Collaboration with environment advocacy groups

E h d h d d l (R&D) Enhanced research and development (R&D)

Engagement of development partners for technology transfertransfer

Practical Efforts• Commitment to challenge the status quo

• Corporate Environmental Management System

• Environmental Risks Assessment of business operations

• Support for environmental advocacy groups

• Collaborate and Participate in MEAs, REDD+

• United Nations Environment Programme (UNEP FI)

THANK YOU

MERCI

ISSUES AND CHALLENGES OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) ADOPTION FOR EMERGING

ECONOMIES

by

OBAZEE, JIM OSAYANDE

2

I dIntroduction

IFRS and Professional Accountants

3

4

Countries are defining their road maps

5

G ’Government’s concern• Attraction of Foreign Direct Investment (FDI);• Attraction of Foreign Direct Investment (FDI);

• Assurance of easier access to external capital for local andAssurance of easier access to external capital for local and domestic companies.

• Easier regulation of financial information of entities.• Enhancement of Local and Foreign Investors’ confidence

in the quality assurance systems of financial reporting in public and private sector entitiespublic and private sector entities.

• Job creation; because graduates of accounting and related fields shall become internationally acceptable and employable.

6

I NIn Nigeria...• A Road map committee was inaugurated on p g

October 22, 2009.

• The Road Map committee’s report was submitted January 26 2010submitted January 26, 2010.

• Government took a decision on July 28, 2010 to adopt IFRS by major overhaul effective January 1, 2012 .

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Nigeria’s Road map

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ISSUES AND CHALLENGES OF IFRS ADOPTION FOR EMERGING ECONOMIES ADOPTION FOR EMERGING ECONOMIES

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WHO IS RUNNING THE SHOW?

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Issues considered by the Nigeriay gRoadmap committee

Sh ld IFRS f Ni i i k fi• Should IFRS for Nigeria come as a quick fix or major overhaul? When, for instance, should reporting entities begin to use IFRS voluntarilyreporting entities begin to use IFRS voluntarily before a national agenda mandates its use?

• What are the implementation challenges and stepsWhat are the implementation challenges and steps to address them during the transition.

• What effect will adoption of IFRS have on private p pcompanies, SMEs, Micro-entities, NGOs and Not-For-Profit Organisations.

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Wh t h ld b ti l t• What should be our national response to international accounting standards that are less rigorous to some peculiar accounting problemsrigorous to some peculiar accounting problems arising from our jurisdiction.

• What should be our national response to industryWhat should be our national response to industry specific accounting activities that are either not in the work plan of IASB or still at the theoretical stage in their agenda but, urgent to us due to national specificities.

• What should be the authority of IASB’s pronouncements .14

• What impact will adoption of IFRS have on regulatory/statutory and tax reporting?regulatory/statutory and tax reporting?

• Since IFRS is fluid, how should our jurisdiction handle this dynamism?jurisdiction handle this dynamism?

• How do we handle enforcement, legal and t h i l i ?technical issues?

• What will be the future role of the “NASB” in the entire compose?

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INITIAL ISSUES FROM A REGULATORY STANDPOINTINITIAL ISSUES FROM A REGULATORY STANDPOINT

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IASB

FRC

National GAAPNational Accounting Standards

IFRS

IFRSICSIC

IFRSIAS

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A D h I lA Decision with Implications

IFRS SoftwareConsumers

of IFRS Software Vendors

of Financial Data

FRC

Government

C iCompanies

Accountants

(Public/Private)

Accounting Firms/

Institutes

Tertiary Institutions

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PRACTICAL IMPLEMENTATION ISSUES FOR EMERGING ECONOMIES

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• Legal, Governance and Regulatory framework• The implementation of IFRS requires considerable

preparation both at the country and entity levels to ensure coherence and provide clarity on the authority that IFRS will have in relation to other existing national lawswill have in relation to other existing national laws.

• The scope of application of IFRS with respect to the size of entities: consolidated or entity levels?y

• The state of readiness of relevant professional accountancy organisations.

• The sincerity of peer review programmes among auditors.

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• The requirement for Technical Partners Forum (ofThe requirement for Technical Partners Forum (of accounting firms) that can identify financial reporting issues that require clarification in order to avoid i i t i ti l ti fi ldinconsistencies; as national accounting firms could contribute to inconsistent application of IFRS.

• Limited number of professional accounting organisations,Limited number of professional accounting organisations, preparers and users, including regulators that can provide the IASB with useful feedback, not only after standards are finalised and ready for implementation but early in thefinalised and ready for implementation, but early in the drafting process.

• The extent of integration of IFRS modules into university g yaccounting education.

21

I tit ti l I• Institutional Issues: The shortage of expertise in the field of IFRS affects not only the private sector, but also regulators and other government agencies.regulators and other government agencies.

• Technical Issues : Complexities of someTechnical Issues : Complexities of some international accounting standards., IFRS Taxonomy, XBRL, Electronic filing, etc.

• Enforcement Issues: The extent of preparedness of enforcement authorities to play positive roles in consistent i l t ti f IFRS b f ilit ti h i fimplementation of IFRS by facilitating sharing of enforcement decisions.

22

• Tax issues: IFRSs have been developed primarily to meet the information needs of p p y

shareholders, lenders and other investors. These needs do not always align with those of the tax authorities (e.g. extensive use of fair value and the application of substance over form)

From taxation point of view, however, there are additional variables that may influence tax position such as impairment, fair value adjustments, specific provisions and treatment of tax losses etc.

IFRS is a new world order, in corporate reporting, that will alter not only the financial accounting and reporting landscape in jurisdictions but also tax accounting/reporting, tax cash flows and tax distributable reserves.

23

• Language and Translation issues.• Convergence options (Adoption or• Convergence options (Adoption or

Adaptation)N ti I hi (ESCAFA PAFA• Normative Isomorphism (ESCAFA, PAFA, FIDEF, etc) ... Political and regional i fl (D i )influence (Donor agencies)

• Corporate Governance issues (Board, Audit Committees, ownership structure)

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Is IFRS Adoption a bad news?Is IFRS Adoption a bad news?

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26

IFRS is not an impossible task for Emerging p f g gEconomies.

Government will need to play its role. Entities will have to take the following steps:g pCarry out a detailed gap and impact analysis. Check the sustainability of their systems and

processes. Understand the financial and business impact and

finallyfinally. Equip their critical key factor – People.

27

GGovernment

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Institutional Arrangements

There is the need to consider the functions of institutional bodies associated withof institutional bodies associated with financial reporting standards or having operational interest in financial reporting asoperational interest in financial reporting as well as consider the appropriate functions, powers and operational arrangements ofpowers and operational arrangements of such institutional bodies.

A ti l i i thi d i id i thA particular issue in this regard is considering the inclusiveness of process. Such usually bear upon:

• Transparency standards (Data transparency, FiscalTransparency standards (Data transparency, Fiscal transparency and Monetary and financial transparency)

• Financial sector standards (Banking supervision, S i i k l i I l iSecurities market regulation, Insurance regulation, Payment systems and Anti-money laundering) and

• Market integrity standards (Corporate governance,Market integrity standards (Corporate governance, Accounting and Auditing, and Insolvency and creditor rights).

• Countries such Nigeria, Malaysia and the Mauritius now have arrangements wherebyMauritius now have arrangements whereby a wider selection of stakeholders other than accountants including representatives fromaccountants, including representatives from a cross-section of the market and other interests; have a meaningful role ininterests; have a meaningful role in financial reporting infrastructure via a Financial Reporting Council’s arrangement.Financial Reporting Council s arrangement.

32

E fEnforcement

Enforcement is considerably more complicated than establishing a strong regulator. Some of the g g gelements of an enforcement regime include:

• Sound systems of corporate governance.

• Self-enforcement by companies during the preparation of financial statements.

• approval of financial statements (by audit committees, Boardof directors and Annual General Meetings of Shareholders). g )

• Statutory audit of financial statements. • Analysis provided by the public and press.Analysis provided by the public and press. • Market forces that can punish companies for poor

disclosure.

• Institutional oversight system. • Courts; through sanctions and/or complaints.

WHAT ARE THE EXPECTATIONS FROM COMPANIES?FROM COMPANIES?

35

36

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High-level IFRS impact assessment

Id if i h k i f IFRS• Identifying the key impacts of IFRS throughout your organization. Focusing not only on accounting and systems impacts, but also on impacts in such areas as income taxes, sales contracts, loan agreements and employee compensation arrangements. Also to be considered is the application of IFRS by subsidiaries (for companies with global operations). 38

D i i j i d d i d• Determining project interdependencies and lead-times by mapping the necessaryi l t ti ti d l ti th tiimplementation actions and evaluating the time needed to complete such actions.E ti ti d ti t f th• Estimating resource needs: an estimate of the time and resources needed to complete the company-specific roadmap designed to enable ancompany-specific roadmap designed to enable an orderly migration to IFRS, while anticipating and mitigating risk, and facilitating greater value for g g , g gthe organization.

39

A th ff ti f l t• Assess the effectiveness of general computer controls that impact on external financial disclosuresdisclosures.

• General IT controls relate to:1 Information technology control environment1. Information technology control environment2. Programme development3 Programme change3. Programme change4. Access to programmes and data5 C t ti5. Computer operations.

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Prepare for Dual reporting

The approach will require GAAP reconciliation through either of two options:reconciliation through either of two options: The traditional IFRS first-time adoption

reconciliationreconciliation. One requiring that step plus an ongoing

di d ili i f th fi i lunaudited reconciliation of the financial statements from IFRS to National GAAP.

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NATIONAL SUPPORT FOR EFFECTIVE TRANSITIONTRANSITION

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• Public sensitization• Passage of Financial Reporting Council Bill• IFRS for SMEs: Consultation with NACCIMAS o S s: Co su tat o w t N CC• Creation of IFRS Academy • NUC to update syllabus of Tertiary institutionsNUC to update syllabus of Tertiary institutions.• Creation of a dedicated Website• Review existing legislation that are inconsistent• Review existing legislation that are inconsistent

with effective implementation of IFRS • Update of Information Technology (IT) SystemsUpdate of Information Technology (IT) Systems

and Chart of Accounts in the public sector.43

W kWorking on tertiary institutions

• Linkage and awareness programme

• Course content for Tertiary• Course content for Tertiary institutions

T i th T i• Train the Trainers44

O A d f d E…On Auditing firms and Entities

• Technical Partners ForumLi i i• Liaison meetings

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WHAT ARE REGULATORS TO CONSIDER NOW?CONSIDER NOW?

46

Primary regulators are to shape th i j i di ti l titi ’their jurisdictional entities’ perspective of IFRS by opening p p y p gdiscussions with the management of such entities on the potentialof such entities on the potential risks and benefits of IFRS.

47

SET THE TONE (by raising the following key questions).

• Has management aligned key stakeholders?

• What is management doing aboutWhat is management doing about communications?

• What steps are being taken to educate the i ti ?organization?

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Non Technical accounting issues

Set up help desk to assist in i th i lik tassessing other issues like tax,

internal processes and controls, pregulatory and statutory reporting, technological infrastructure andtechnological infrastructure, and organizational issues

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Focus on the process.

• Regulators are to focus on overseeing company’s approach timeline andcompany s approach, timeline, and remotely; budget for transition.

• Regulators are expected to encourage• Regulators are expected to encourage management to consider short and long-term planning issues in determining whatterm planning issues in determining what the company needs to do now versus later.

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51

Factors that will guarantee success

• The right skills

Th i ht i t• The right equipment

• The right mindset g52

CONCLUSIONCONCLUSION

53

• There are world-wide emerging pressures withgrowing competition, globalisation and

h l i l i i hi h ill if i htechnological innovations which will, if it has not,compel market operators to change.

At such, a higher standard of financial disclosure and better information for marketdisclosure and better information for market participants (capable of underpinning disclosure-based regulation and betterdisclosure based regulation and better ability to attract and monitor listings by foreign companies) are now unavoidable.foreign companies) are now unavoidable.

These are the new roads to capital that are capable of promoting economic growthcapable of promoting economic growth.

THANK YOUTHANK YOU

56

THE PARADOX OF CLIMATE CHANGE: THE CHALLENGE FOR PROFESSIONALSFOR PROFESSIONALS.

BYBY

KIGHIR, APEDZAN EMMANUEL PhD, FCA

d ki hi 200 @ [email protected],

ENVIRONMENTAL ACCOUNTANT

NASARAWA STATE UNIVERSITY KEFFI, NIGERIA

INTRODUCTION

• CLIMATE CHANGE is a long‐term change in the statistical distribution of weather patterns over periods of time that range from decades to millions of years. It may be a change in the average weather conditions or a change in the di t ib ti f th t ith t tdistribution of weather events with respect to an average. Climate change may be limited to specific region or may occur across the whole Earth. In recent usage, especially in the context of environmental policy climate change usuallythe context of environmental policy, climate change usually refers to changes in modern climate.. It may be qualified as anthropogenic climate change, more generally known as global warming.global warming.

• The Secretary‐General of the United Nations has called climate change a defining issue of our era. It has in recent years emerged as an important global challengeyears emerged as an important global challenge.

INTRODUCTION contINTRODUCTION cont

• According to the 2007 Fourth assessment reportAccording to the 2007 Fourth assessment report by Intergovernmental Panel on Climate change (IPCC), global surface temperature increased by ( ), g p y0.74 during the 20th century. Correspondingly, the atmospheric concentration of CO2, the most significant GHG, has increased from 280 parts per million (ppm) in the pre‐industrial period to 379 ppm in 2005.

•


• The United States National Academy of science (2008), confirm that most of the observed temperature increase since the middle of the 20th century has been caused by increasing concentrations of greenhouse y g ggases from human activities (anthropogenic sources).

• Greenhouse gases are those gaseous constituents of the atmosphere, both natural and anthropogenicthe atmosphere, both natural and anthropogenic (resulting from human activity), that absorb and emit radiation at specific wavelengths within the spectrum of infrared radiation emitted by the earth’s surface theof infrared radiation emitted by the earth s surface, the atmosphere and clouds. This is known as green house effect.


• THE GREENHOUSE EFFECT is the work of Fourier (1824), Tyndall (1865) and Arrhenius (1896). The greenhouse effect is a process by which thermal radiation from a planetary Earth surface isradiation from a planetary Earth surface is absorbed by atmospheric greenhouse gases, and is re‐radiated in all directions. Since part of this

di ti i b k t d th f ire‐radiation is back towards the surface, energy is transferred to the surface and the lower atmosphere. As a result, the temperature there is p , phigher than it would be if direct heating by solar radiation were the only warming mechanisms.

INTRODUCTION cont: GREENHOUSE GASESSource: wikipedia


• This mechanism is fundamentally differentThis mechanism is fundamentally different from that of an actual agricultural greenhouse which works by isolating warmgreenhouse, which works by isolating warm air inside the structure so that heat is not lost by convention thus warming plant nurseryby convention, thus warming plant nursery. The implication is that the gases have made a house that covers the earthhouse that covers the earth.

•

INTRODUCTION cont: GREENHOUSES iki diSource: wikipedia

INTRODUCTION CONT. CARBON CYCLEb lsource: buzzle.com

INTRODUCTION CONT. CARBON CYCLEINTRODUCTION CONT. CARBON CYCLE

• In the process of photosynthesis, atmospheric carbon is absorbed by plantsplants.

• This carbon is transferred from plants to the animals feeding on them, and further moves up the food chain.

• Respiration, digestion and metabolism in plants and animals result in p , g psome transfer of carbon back to the atmosphere.

• Some carbon also moves to the lithosphere when these living organisms die or when wood and leaves decay (deforestation)or when animals excrete Some of these living beings buried millions of years ago haveexcrete. Some of these living beings buried millions of years ago have been converted to fossil fuels(coal, petroleum, natural gas, kerosene etc).

• Mining and burning of fossil fuels cause this carbon to move from the lithosphere to the atmosphere.

f hi h i b di l d i h d h• Some of this atmospheric carbon gets dissolved in the oceans and others absorbed by the plants again in the process of photosynthesis thus completing the cycle.


• The higher the concentration of greenhouseThe higher the concentration of greenhouse gases like carbon dioxide in the atmosphere, the more heat energy is being reflected backthe more heat energy is being reflected back to the Earth. The emission of carbon dioxide into the environment mainly from burning ofinto the environment mainly from burning of fossil fuels (coal, petroleum, natural gas, kerosene etc ) and cement production haskerosene, etc.) and cement production has increased dramatically over the past 50 years, see graph belowsee graph below.


• The primary natural greenhouse gases include p y g gwater vapour (H2O), carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4) and ozone (O3) gases in the earth’s atmosphere The anthropogenicin the earth s atmosphere. The anthropogenic greenhouse gases include organohalogencompounds, especially chlorofluorocarbons(CFCs) d b fl b d d thand bromofluorocarbons covered under the

monstreal protocol. Others include hydrofluorocarbons (HFCs), perfluorocarbonsy ( ), p(PFCs) and sulphur hexafluoride (SF6) covered under the Kyoto protocol.


• The Montreal Protocol (1987, 1992) is named after the second l t it i C d h i t ti l t t i d blargest city in Canada where an international treaty was signed by 196 countries, on Substances That Deplete the Ozone Layer. The ozone layer is a layer in Earth’s atmosphere which contains relatively high concentrations of ozone (O3). Ozone layer was y g ( 3) ydiscovered by the British physicist Sidney Chapman. Chapman (1930), believes that this layer absorbs 97–99% of the sun’s high frequency ultraviolet light (UV‐B), which is damaging to life on Earth and is believed to cause sunburn and skin cancerand is believed to cause sunburn and skin cancer.

• The ozone layer can be depleted by free radical catalysts, including nitric oxide (NO), nitrous oxide (N2O), hydroxyl (OH), atomic chlorine (Cl), and atomic bromide (Br). While there are natural ( ), ( )sources for all of these species, the concentrations of chlorine and bromine have increased markedly in recent years due to the release of large quantities of man‐made organohalogen compounds, especially chlorofluorocarbons (CFCs) and bromofluorocarbonsespecially chlorofluorocarbons (CFCs) and bromofluorocarbons.


• These highly stable compounds are capable of surviving the rise to the stratosphere (The second major layer of Earth atmosphere after troposphere but below the mesosphere), where Cl and Br radicals are p )liberated by the action of ultraviolet light. Each radical is then free to initiate and catalyze a chain reaction capable of breaking down over 100,000 ozone p gmolecules. The breakdown of ozone in the stratosphere (second major layer of atmosphere) results in the ozone molecules being unable to absorb gultraviolet radiation. Consequently, unabsorbed and dangerous ultraviolet‐B radiation is able to reach the Earth’s surface.


• 1992 UNFCCC• With 192 member States, UNFCCC sets an overall framework for international efforts to tackle climate change. The convention places a heavier burden onchange. The convention places a heavier burden on developed countries to reduce GHG emissions under the principle of “common but differentiated responsibilities”. While developing countries are notresponsibilities . While developing countries are not bound by any specified emission reduction targets, by 2000 developed countries had to reduce their GHG emissions to 1990 levels They are also required toemissions to 1990 levels. They are also required to promote and facilitate the transfer of climate‐friendly technologies to developing countries and to countries with economies in transitionwith economies in transition.


• The Kyoto Protocol (1997, 2005) is a city in southern Japan where an international treaty linked to the United Nations Framework Convention on Climate Change (UNFCCC or FCCC), aimed at fighting global warming was signed. The UNFCCC i i t ti l i t l t t ith thUNFCCC is an international environmental treaty with the goal of achieving "stabilization of greenhouse gases concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with theprevent dangerous anthropogenic interference with the climate system. Kyoto Protocol deals with greenhouse gases such as hydrofluorocarbons (HFCs), perfluorocarbons(PFCs) and sulphur hexafluoride (SF6) The Protocol was(PFCs) and sulphur hexafluoride (SF6) The Protocol was initially adopted on 11th December 1997 in Kyoto, Japan and entered into force on 16th February 2005. As of July 2010, 191 states ,


• As of July 2010, 191 states have signed and ratified the protocol. Th j f t f th K t P t l i th t it t bi diThe major feature of the Kyoto Protocol is that it sets binding TARGETS for 37 industrialized countries and the European community for reducing greenhouse gas (GHG) emissions.

• The outcome of the meeting was the Kyoto Protocol in which theThe outcome of the meeting was the Kyoto Protocol, in which the industrialized countries and economies in transition—the so‐called Annex 1 countries—agreed to cut their overall GHG emissions during the first commitment period (2008‐2012) by about 5% l ti t th l l itt d i 1990 (th b li ) N ti lrelative to the levels emitted in 1990 (the baseline year). National

targets range from 8% reductions for the European Union and some others, 6% for Japan and Canada, 0% for Russia, and permitted increases of 8% for Australia and 10% for Iceland.

•


• The principal human sources of these gases include: Carbon p p gdioxide (CO2), which is produced mainly from fossil fuels through burning, power plants and deforestation. The methane (CH4) is produced mainly from paddy ricemethane (CH4) is produced mainly from paddy rice fields, livestock digestion processes through manure and livestock fermentation, covered landfills, land use and

( )wetland changes, coal mining. Nitrous oxide (N2O) is produced from agricultural activities through nitrogen based fertilizer and cattle waste feedlots. Ozone (O3) is produced ( 3) pthrough car exhaust pollutants such as carbon monoxide and nitrogen oxide. The study tries to bring to limelight the dangers associated with the greenhouse gases and to drawdangers associated with the greenhouse gases and to draw stakeholders’ attention to their environmental and social responsibility regarding the impending human catastrophes.

INTRODUCTION contINTRODUCTION cont• THE EFFECT OF GLOBAL WARMING. Two major effects of

global warming were identified i) Increase of temperature on the earth by about 3° to 5° C (5.4° to 9°Fahrenheit) by the year 2100 ii) Rise of sea levels by atFahrenheit) by the year 2100. ii) Rise of sea levels by at least 25 meters (82 feet) by the year 2100. The increase in global temperatures is believed to be causing a broad range of changes. Sea levels are rising due to thermal expansion of the ocean, in addition to melting of land ice The total annual power of hurricanes has alreadyice. The total annual power of hurricanes has already increased markedly since 1975 because their average intensity and average duration have increased (in addition, there has been a high correlation of hurricane power with tropical sea‐surface temperature)


• Changes in temperature and precipitation g p p ppatterns increase the frequency, duration, and intensity of other extreme weather events, such as floods droughts heat waves and tornadoesas floods, droughts, heat waves, and tornadoes. Other effects of global warming include higher or lower agricultural yields, further glacial t t d d t fl iretreat, reduced summer stream flows, species

extinctions. As a further effect of global warming, diseases like malaria are returning into g, gareas where they have been extinguished earlier

•

ENVIRONMENTAL CHALLENGES OF CLIMATE

CHANGE FOR PROFESSIONALSChallenge to Human Health Practitioners

( )• Chapman (1930), believes that the sun’s high frequency ultraviolet light (UV‐B), which is as a result of depleted ozone layer is damaging to life on Earth and is believed to cause sunburn and skin cancer, hotter atmosphere leading to heat waves and migration within cities, Stagnant

d fl d f h l dwater due flooding may increase infections such as malaria and water borne diseases.

• Challenge to Natural Relief Organisations like NEMA, Red Cross and Insurance Professionals

• i) Rising sea levels may lead to hurricanes like the recent hurricane Katrina that ravaged the U.S.A, ii) flooding like the recent tsunami flooding that threatened human existence across Asia. iii) Storms, iv) wildfires triggered by storms v) Loss of love ones and properties as witnessed during tsunamiby storms, v) Loss of love ones and properties as witnessed during tsunami and Hurricane Katrina. vi) Natural disaster relief will become harder to find as organizations like Red Cross and National emergency management Agency may be put under strain.

ENVIRONMENTAL CHALLENGES OF CLIMATE CHANGE FOR PROFESSIONALS CONTCHANGE FOR PROFESSIONALS CONT

Challenge to coastal infrastructure and ValuationChallenge to coastal infrastructure and Valuation Professionals

• Landowners deeply affected by climateLandowners deeply affected by climate change will suffer asset value loss, such as families who migrate away from cement factory sites, mining sites, oil spillage and gas flared sites, beaches like Victoria Island and Ik i i Ni i b ff d b i iIkoyi in Nigeria may be affected by rising ocean waves.

ENVIRONMENTAL CHALLENGES OF CLIMATE CHANGE FOR PROFESSIONALS CONT

Economic and Social Development ProfessionalsEconomic and Social Development Professionals

• i)Food security will be threatened as drought and natural disasters will destroy existingand natural disasters will destroy existing crops, ii) War over water as a result of drought may devastate societies iii) The UNmay devastate societies, iii) The UN millennium development target may become difficult to achievedifficult to achieve.


Challenge To Aircraft PilotsC a e ge o c a t ots• Commercial airliners typically cruise at altitudes of 9–12 km (30,000–39,000 ft above sea level) in temperate latitudes (in the lower reaches of the stratosphere). They do this to optimize fuel burn,

tl d t th l t t t dmostly due to the low temperatures encountered near the tropopause and the low air density that reduces parasitic drag on the airframe. It alsoreduces parasitic drag on the airframe. It also allows them to stay above any hard weather or extreme turbulence.


Challenge to Sailors, global trade and security.• According to UNCTAD (2009), International maritime

transport carries over 80 per cent of the volume of world trade and is vital to globalized trade. Like other economic

t it i f i d l h ll i l ti t li tsectors, it is facing a dual challenge in relation to climate change: the need to reduce its contribution to global warming International shipping generates around 3 per cent of global CO emissions from fuel combustion – and the need to adaptCO2emissions from fuel combustion and the need to adapt to the impacts of climatic changes. If left unchecked, these emissions, which are not currently covered by the UNFCCC framework, are expected to increase by a factor of 2.2 to 3.1 , p yover the next four decades. At the same time, maritime and related transport systems are also likely to be directly and indirectly affected by various climatic changes, such as rising

l l t th t d i i t tsea levels, extreme weather events and rising temperatures, with broader implications for international trade and development.


• Challenge to Environmental Tax (Green Tax) Practitioners:• Environmental taxation is one of the three prone measures

(Systems of regulations, taxations and market‐based instruments of environmental policy) introduced by governments all over the world to prevent environmental degradation. Environmental taxation refers to an emission charge or fee collected by government per unit of pollution

itt d i t th i t ‘Th ll t i i l ’emitted into the air or water. ‘The polluter pays principle’. This measure became necessary as the traditional regulatory environmental policy introduced in the 1970’s was not managing enough to prevent further unacceptablewas not managing enough to prevent further unacceptable environmental damage. In addition, it was feared that the costs of attempting to make it achieve this may be great.


• The environmental policy makers then started thinking of alternatives such as taxes and market ‐ based instruments. This is because: i) There has been increased awareness of the power and potentials of markets and a new orientation towards markets in public policy. ii) Increased recognition f h l f l d h d l fof the limitations of governments in general and the traditional system of

environmental regulations in particular.iii) Increased concern that such systems were not adequately coping with environmental problems but were imposing substantial economic costs leading to a new interest inwere imposing substantial economic costs, leading to a new interest in other instruments that might offer more cost effective environmental policy. iv)The desire to make further progress with the implementation of ‘the polluter pays principle’ and to internalize the environmental costs intothe polluter pays principle and to internalize the environmental costs into the prices of the relevant products and activities. The green taxes have their own challenges such as i) assigning the right level of taxation, ii) The issue of equity and consumer welfare, iii) The problem with Eco‐tax q y , ) preformers who insist that, introduction of polluter taxes should be revenue neutral. Due to the above challenges, market based instruments are being encouraged.


• Some national and sub national initiatives to deal with climate change have introduced some regulations, taxes and levies like i) the 2004 California regulations on GHG emissions from motor vehicles and the Japan green t ti l f t bil li t h l i thtaxation plan for automobiles, a climate change levy in the United Kingdom; a 2005 climate change plan for Canada; Australia’s GHG abatement programme; a carbon tax and negotiated GHG agreement in New Zealand; a 2005 law onnegotiated GHG agreement in New Zealand; a 2005 law on renewable energy in China; a national biodiesel programme in Brazil; GHG action plans in 30 states in the United States; California laws on a State‐wide cap on GHGUnited States; California laws on a State wide cap on GHG emissions.

• In Nigeria the main method of mitigating GHG emissions is through regulations flaring fines charges and taxesthrough regulations, flaring fines, charges and taxes.

ENVIRONMENTAL CHALLENGES OF CLIMATE CHANGE FOR PROFESSIONALS CONTFOR PROFESSIONALS CONT

Challenge to Accounting Profession and Environmental g gAccountants

• The EU Greenhouse gas (GHG) Emission trading Scheme (EU ETS)ETS)

• In 2005, the European Union (EU) created a new commodity market‐ the Greenhouse gas (GHG) Emission trading Scheme g ( ) g(EU ETS) worth 21 billion Euros a year (Casamento2004). The market is divided into two phases. First phase 2005 – 2007 inclusive Second phase 2008 2012 inclusive The EU ETSinclusive, Second phase 2008‐ 2012 inclusive. The EU ETS requires operators of certain installations from sectors covered by the scheme to surrender, by 30 April each year, allowances equal to the annual verified GHG emissions from such installation in the preceding year. Operators who fail to comply with this condition face a penalty for non‐compliance


• The penalty for the first phase of the EU ETS (January 2005 to December 2007 inclusive) is set at of 40 Euros per tonnerising to 100 Euros per tonne for the second phase (2008‐2012). The scheme is based on the concept of cap and t d h b th t t l l f GHG i itrade, whereby the total volume of GHG emissions are effectively capped by limiting the number of allowances made available. Participants are also allowed to manage their position by trading allowances For example iftheir position by trading allowances. For example, if emissions exceed the number of allowances, an operator can obtain the required volume of allowances by purchasing them on the market. Alternatively, if anpurchasing them on the market. Alternatively, if an operator has excess allowances, they are able to potentially profit off these by selling them.

ENVIRONMENTAL CHALLENGES OF CLIMATE CHANGE FOR PROFESSIONALSCHANGE FOR PROFESSIONALS

• The scheme is expected to cover some 12,000 p ,installations across a number of sectors, including energy, production and processing of ferrous metals (e g ore steel) minerals (e gmetals (e.g. ore, steel), minerals (e.g. cement, ceramics) and pulp and paper. In terms of gases, while the directive that establishes the h b k t f i GHG th fi tscheme covers a basket of six GHGs, the first

phase of the scheme only covers carbon dioxide. According to Casamento, in the UK alone, the g , ,allocation of allowances to one individual entity for a three‐year period (based on the UK draft National Allocation Plan January 2004) is 65mNational Allocation Plan, January 2004) is 65m allowances.

ENVIRONMENTAL CHALLENGES OF CLIMATE CHANGE FOR PROFESSIONALSFOR PROFESSIONALS

• Cap and Trade Programmes• The United States Carbon Cap‐and‐Trade Plan is a policy

being practiced by the state of Califonia and being proposed by President Barack Obama at national that would essentially put a price on carbon dioxide emissions by auctioning off permits to emit the gas. The “cap” would work by setting a maximum amount of carbon to be

itt d i th U it d St t d th “t d ” ld llemitted in the United States, and the “trade” would allow the carbon emitters to freely trade carbon permits amongst themselves.Th l ld lik l b d l d ft t th d• The plan would likely be modeled after two other cap and trade programs, the United States Acid rain programme, and the European Union’s EU ETS.

ENVIRONMENTAL CHALLENGES OF CLIMATE CHANGE FORCLIMATE CHANGE FOR

PROFESSIONALS• Kyoto Clean Development Mechanism (CDM) and the Joint

Implementation (JI). •• Two separate "flexibility mechanisms" cover emissions‐Two separate flexibility mechanisms cover emissions

reducing projects under the Kyoto Protocol. The first is the Clean Development Mechanism (CDM), under which Annex 1 countries can earn emissions credits for certain types of projects initiated after the year 2000 in developing countries (Annex 2). CDM projects earn credits called Certified Emissions Reductions, or CERs. The second is Joint I l t ti (JI) hi h GHG i i d tiImplementation (JI), which covers GHG emissions reduction projects that are implemented jointly between two or more developed countries (Annex 1). JI projects generate credits called Emission Reduction Units or ERUscalled Emission Reduction Units, or ERUs.


• The International Financial Reporting Interpretations Committee (IFRIC) of International accounting standard board in may 2003, issued a draft interpretation (D1) on emission rights and called for alternative comments and

t ith th f ll i id li d li i i) Acame out with the following guidelines and policies: i) An asset for allowances held: Emission allowances, whether allocated by government or purchased in the market, are intangible assets and should be accounted for inintangible assets and should be accounted for in accordance with IAS 38, Intangible Assets. Allowances that are allocated for less than fair value shall be measured initially at their fair value. Allowances shall not beinitially at their fair value. Allowances shall not be amortized, but are to be tested for impairment under IAS 36, Impairment of Assets.


• ii) A government grant: When allowances are ) g gallocated by government for less than fair value, the difference between the amount paid and fair value is a government grant that shall bevalue is a government grant that shall be accounted for in accordance with IAS 20, Government Grants and Disclosure of G t A i t A di l th t iGovernment Assistance. Accordingly, the grant is initially recognized as deferred income in the balance sheet and subsequently recognized as q y gincome on a systematic basis over the compliance period for which the allowances were allocated.


• iii) A liability for the obligation to deliver allowances equal to emissions that ha e been made As emissions are made a liabilit isemissions that have been made: As emissions are made, a liability is recognized for the obligation to deliver allowances to cover those emissions (or to pay a penalty). This liability is a provision that falls

d IAS 37 P i i C ti t Li biliti d C ti tunder IAS 37, Provisions, Contingent Liabilities and Contingent Assets. The liability shall be measured a

• t the best estimate of the expenditure required to settle the present obligation at the balance sheet date. This will normally be the present market price of the number of allowances required to cover emissions made up to the balance sheet date. However, if the participants best estimate is that some or the entire obligation will be settled by incurring a cash penalty, it (i.e. the participant) shall measure that part of its obligations at the cost of the penalty rather p g p ythan at the market price of the relevant number of allowances.


• Challenge to Investment Finance Practitionersg• Investment In Green Bonds And Climate Bonds: The green bonds are issued in order to raise the finance for

i t l j t hil Cli t b d i denvironmental projects while Climate bonds are issued to raise finance for investments in emission reduction or climate change adaption. The two can be issued by g p ygovernment, multinational corporations or Banks.

• Currently the largest investment pool focused on Land Use Land Use Change and Forestry (LULUCF) projectsUse, Land Use Change and Forestry (LULUCF) projects is the World Bank's BioCarbon Fund, which invests in biosequestration projects around the globe.


• Biosequestration is the process of removing excess carbon dioxide (CO2) from the atmosphere (3.67 tons CO2 = 1 ton sequestered carbon) throughfrom the atmosphere (3.67 tons CO2 1 ton sequestered carbon) through afforestation. The Kyoto Protocol's Clean Development Mechanism (CDM) recognizes carbon sequestration through forestry as a way to mitigate global warming and also allows industrialized countries to offset their carbon emissions by investing in forestry projects in developing countries (UNFCCC, 2003)

• Carbon sequestration projects' are of economic and environmental benefits to Africa, the world's poorest continent. African countries need increased investment to support poverty alleviation and infrastructure development. With a high dependence on land and forests for

ffsubsistence, these countries also require effective strategies to combat the growing threat of widespread natural resource degradation. Accordingly, efforts to mitigate climate change through carbon sequestration projects could bring in money both to raise local incomessequestration projects could bring in money both to raise local incomes and regenerate natural resources (Kituyi, 2002). Currently, carbon sequestration projects in Africa are located in Kenya, Uganda or Tanzania Burkina Faso Madagascar


• World Bank's BioCarbon Fund is currently the biggest investor of b t ti j t i Af i Th i l d T icarbon sequestration projects in Africa These include Tanzania

, Kenya, Uganda, Mauritania, Senegal, Sudan, Benin, Mozambique, Madagascar and Ethiopia.

• Other prominent carbon investors in Africa are the GlobalOther prominent carbon investors in Africa are the Global Environment Facility (GEF), the United States Agency for International Development (USAID), the Forest Absorbing Carbon Emissions (FACE) Foundation, and the European Union. The C it R h d D l t C t (CREDC) UNCommunity Research and Development Centre (CREDC), UN Development Programme (UNDP)/Global Environment Facility Small Grant Programme (GEF SGP), the Global Greengrants Fund (GGF) and the Environmental Rights Action/Friends of the Earth ( ) g /Nigeria

• Investors include: Tokyo Electric Power Company, Okinawa Electric, and the nations of Canada, Italy, Luxemburg and Spain.


• Challenge to Professional Farmers, Community Leaders and Politicians.• Carbon Sink initiatives: Projects involving the establishment of carbon

"sinks," or natural reservoirs for carbon dioxide such as trees, soil, and the ocean, are eligible for generating credits under the CDM or JI. However, such activities are limited to afforestation and reforestation on land that

f d h f h " d dwas not forested in 1990, per the terms of the "Land Use, Land Use Change and Forestry (LULUCF)" rubric of the Kyoto Protocol.

• Major developmental benefits for local communities from these projects include an increased number of timber and non‐timber forest products pfrom regenerated forests, employment opportunities from forestry activities, and increased incomes from the sale of carbon credits.

• The Bioseqeustration can bring about Sustainable Development, Biodiversity Conservation Ecological Restoration such as afforestation andBiodiversity Conservation, Ecological Restoration such as afforestation and reforestation can often generate other locally‐valued ecosystem services such as improved water quality and reduced soil erosion and sedimentation (Scherr et al., 2004) and can improve Soils and Land ProductivityProductivity

ENVIRONMENTAL CHALLENGES OF CLIMATE CHANGE FOR PROFESSIONALS CONT

• Nigeria in 2003, under the special unit of Climate g , pchange in the Federal Ministry of Environment

• published the first National Communication under the UNFCCC Thi i ti t Ni i ’UNFCCC. This communication presents Nigeria’s gross national emissions by source and by sinks.

• The summary of national emissions of greenhouseThe summary of national emissions of greenhouse gases show that CO2 has 192 Tg CO2, Carbon Monoxide (CO) 17TgCO, Methane 5.9 Tg CH4, Non Methane Volatile Organic Compounds(NMVOC) 2 2 TgMethane Volatile Organic Compounds(NMVOC) 2.2 TgNMVOC, Others include 660 Gg of NO2, 12 Gg of N2O

• MAJOR SOURCES OF CARBON DIOXIDE EMISSIONSMAJOR SOURCES OF CARBON DIOXIDE EMISSIONS

MAJOR SOURCES OF CARBON DIOXIDE EMISSIONS

LAND USE AND LAND USE CHANGE AND FORESTRY

6% 3%

1%

(LULUCF)

GAS FLARING

40%20%TRANSPORT

30%

OTHER ENERGY

ELECTRICITY

INDUSTRIAL PROCESSES

MAJOR SOURCES OF METHANE EMISSIONS

32%18%

4% 2%

WASTE WATER TREATMENT (WWT)

ENERGY

LIVESTOCK

25%

19% RICE CULTIVATION

MUNICIPAL SOLID WASTE(MSW)

OTHER AGRIC

MAJOR SOURCE SOF CARBON MONOXIDE

28%21%

1%

TRANSPORT

GAS PLARING

SMALL COMBUSTION

25%

25% AGRICULTURE

WASTE

THE PARADOX OF CLIMATE CHANGETHE PARADOX OF CLIMATE CHANGE

• A PARADOX is a seemingly true statement or group of statements th t l d t t di ti it ti hi h t d f l ithat lead to a contradiction or a situation which seems to defy logic or intuition.

• There has been a variety of disputes, significantly more pronounced in the popular media than in the scientific literature regarding thein the popular media than in the scientific literature, regarding the nature, causes, and consequences of global warming. The disputed issues involve the causes of increased global average air temperature, especially since the mid‐20th century, whether such a

i t d i d t d ithi l li tiwarming trend is unprecedented or within normal climatic variations, whether humankind has contributed significantly to it, and whether the increase is wholly or partially an artifact of poor measurements. Additional disputes concern estimates of climate psensitivity, predictions of additional warming, and what the consequences of global warming will be.

THE PARADOX OF CLIMATE CHANGE

• i) According to UNCTAD conference on Maritime transport and climate change, although di i b d d l d d h ll i bpredictions based on current trends already suggested an enormous challenge, it must be

stressed that there was an inherent degree of uncertainty associated with those predictions.

• Natural systems were complex and non‐linear, and there was a very real risk that growing GHG concentrations could trigger various feedback mechanisms that would drive climatic changes and their consequences to levels that were extremely difficult to manage.

•• ii) The Kyoto Protocol's first commitment period runs from 2008 through 2012, and whether

thethe

•• signatories will meet the 5% global reduction target remains uncertain.

•• iii) According to Anthony Giddens, a sociologist the central paradox of climate change politics

is that electorates can't grasp the significance of climate change because it is too abstract, and not dramatic enough.

• iv) Even more contradicting, is the European Union's own climate change policies, touted asiv) Even more contradicting, is the European Union s own climate change policies, touted as the most progressive in the world, are to blame. The EU‐wide emissions trading system determines the total amount of CO2 that can be emitted by power companies and industries. And this amount doesn't change ‐‐ no matter how many wind turbines are erected.

RECOMMENDATIONSRECOMMENDATIONS

• Designing products that are energy efficient and emitting less greenhouse gases i.e buying fuel efficient cars and appliances while avoiding tokobo cars and appliances,

• Investing in alternative energy sources such as solar energy and wind energy,

• Constructing homes that can withstand flooding risk.• Afforestation and Reforestation to act as biosequestrationAfforestation and Reforestation to act as biosequestration

strategy.• Introduction of emission taxes • Eliminating the consumption of meat and going vegan i e• Eliminating the consumption of meat and going vegan i.e

vegetarianism to avoid methane producing livestock.

RECOMMENDATIONS contRECOMMENDATIONS cont• Encouraging carbon‐neutrality, capping our global carbon emission and

emissions trading schemes as it is being done in European Unionemissions trading schemes as it is being done in European Union countries. This is achieved by issuing tradable carbon permits that major polluters must buy for each ton of carbon they send into the atmosphere. In this scenario of carbon emission trading, companies are limited to certain level of carbon emission based on past high level of emission i ecertain level of carbon emission based on past high level of emission, i.etheir emission levels are ‘grandfathered’. A company that emits smaller amounts of greenhouse gases than it did in the past may sell its permitted emissions credits to one that generated more than it did in the past. The idea is to encourage more companies to produce fewer emissions whileidea is to encourage more companies to produce fewer emissions while still growing.

• Introduction of Green bonds and climate bonds• Finally, awareness‐raising, knowledge sharing, education and information y, g, g g,

dissemination is needed. We should consider the possibility of including a compulsory subject on climate change or Environmental accounting in the undergraduate curriculum and ICAN syllabus.

..

THANK YOUTHANK YOU

Page 1 of 8

SPEECH BY THE PRESIDENT/CHIEF EXECUTIVE, DANGOTE GROUP,

ALHAJI ALIKO DANGOTE, CON, AT THE INSTITUTE OF CHARTERED

ACCOUNTANTS OF NIGERIA (ICAN) 41st ANNUAL ACCOUNTANTS’

CONFERENCE, AT THE INTERNATIONAL CONFERENCE CENTRE (ICC),

ABUJA, ON 18th OCTOBER, 2011

The President, Institute of Chartered Accountants of Nigeria (ICAN),

Members of the Council,

Distinguished Chartered Accountants and Invited Guests,

Gentlemen of the Press,

Distinguished Ladies and Gentlemen,

I feel highly honoured and privileged to stand before this gathering of

distinguished chartered accountants and other key stakeholders in the

Nigerian economy, to speak on the topic: “The Changing Roles of

Chartered Accountants in Value Creation and Business Sustainability.”

The topic is very relevant and timely, particularly now that the Federal

Government is spearheading an all-embracing economic reform agenda

for the country as part of its vision of making Nigeria an economic

super power by the year 2020. You will agree with me distinguished

ladies and gentlemen that businesses can only be sustained by doing

the extra-ordinary through value creation by various

Page 2 of 8

professionals like you distinguished chartered accountants and

professional bodies, like your respected institute through this kind of

commendable initiative of organizing Annual Chartered Accountants

conference, where topical issues are carefully chosen as themes and

thoroughly discussed. I am aware other professional bodies have

copied this laudable initiative of ICAN. My only wish and prayer is that

your communiqué at the end of this conference will go to the relevant

sectors for implementation. I hope the Institute has an effective

feedback and monitoring mechanism in this regard.

Value Creation in Business

The primary objective of any business is the maximization of

shareholders value. This can only be achieved through value creation in

the business.

The way value is created in a service industry or finance industry is

quite different from the way value is created in a manufacturing

industry or public sector, but the objective remains the same. In the

manufacturing industry, increase in production volume and capacity

utilization, product quality, sales volume and value, research and

development, new products and markets, reduction of wastages,

efficient logistics and distribution infrastructure, financing costs,

availability of highly skilled manpower especially in the areas of

engineering and frequent changes in government Fiscal and Monetary

policies amongst others are key parameters that impact

Page 3 of 8

greatly in value creation. A service business will rely on knowledge and

skill of its workers. In the service industry, value is created mainly

through effective and efficient service delivery. Examples of which are

too numerous to mention.

When Profits Do Not Create Value

Sometimes, making profits and creating value do not coincide. For

instance, when you are trading, you are not really adding as much value

to the economy as in manufacturing. In fact you are adding value to

your trading partners’ economy.

In Dangote Group, one of our major business objectives is to make

Nigerian economy grow by creating value addition businesses in the

manufacturing sector. Dangote Cement Plc, apart from being the

leading Nigerian cement company with Pan-African expansion plans,

control over 50% of the market share and is currently the company

with the highest market capitalization on the Nigerian Stock Exchange.

Our other manufacturing business interests are in Sugar and Salt

Refining, Flour Milling, Pasta and bags production. Four of our

subsidiaries are quoted on the Nigerian Stock Exchange.

Today, our Group is the largest employer of labour in the country

outside the Federal Government. Currently, we have over 15,000 direct

employees, with many Chartered Accountants in Strategic and Policy

decision making positions. About 150 of our employees are Chartered

Accountants (ICAN Members), who are helping to drive our vision.

Page 4 of 8

We are immensely proud of them. We sponsor our staff to several

MCPE Training Programmes as well as Annual Conference to update

their technical knowledge and skills.

Ladies and gentlemen, I am sure that you will agree with me that in

manufacturing, apart from creating jobs locally, you also add value by

harnessing your natural resources and solid minerals, while saving

foreign exchange for the country.

It often gets to a point where it is not only about making money

anymore, but also about giving back to people and the environment.

This brings me to the concept of Corporate Social Responsibility (CSR).

At Dangote Group, we have a very robust CSR strategy in place as part

of our giving back to the society. Dangote Foundation set up in 1993, is

the vehicle through which we drive our various CSR initiatives in areas

such as health, education, youth empowerment, infrastructural support

services such as transformers, provision of water and disaster relief.

Dangote Foundation has impacted on lives both within and outside the

country. We have recently donated several millions of Naira to the

various flood victims all over the country, and also internationally to the

various neighbouring African countries and Pakistan.

Page 5 of 8

Similarly, we are providing vocational and technical training through

Dangote Academy to our youth, who will be employed in our various

companies and other companies as well at the end of their 1-year

training programme. We have recently approved a take-off grant of

N1billion for the academy.

Distinguished Ladies and Gentlemen, despite the lack of adequate

infrastructure and challenging environment, we are expanding our

various production capacities and devising several ways of not only

remaining in business, but being market leaders in any business of our

choice. This strategy of ours best described the topic of my

presentation, Value Creation and Business Sustainability.

Page 6 of 8

The Changing Roles of Chartered Accountants in the

Value Creation and Business Sustainability

Chartered Accountants add value in various ways, some of which are

enumerated below;

Vision and Mission definition

Feasibility Studies and Financial Projections

Audit and Assurance

Tax Planning and Management

Company Secretariat and Shareholders Relationship Management

Receivership and Liquidation

Financial Reporting and Compliance (IFRS)

Enterprise Risk Management

Enterprise Resource Planning (ERP)

Corporate Governance

CSR/HSE (Social Accounting Issues)

The Chartered Accountant’s new roles apart from being Chief Finance

Officers (CFO), include Chief Business Officer (CBO), Chief Operating

Officer (COO), and Chief Strategic Development Officer (CSDO).

Page 7 of 8

The quality of Chartered Accountants and the high standards of the

profession need to be jealously guarded. The growing demand for

Chartered Accountants should set the members of the profession

thinking of their new roles as business partners in the dynamic

operating global economy.

It is being increasingly recognised that Chartered Accountants should

no longer confine themselves merely to accounting for past events, but

should also broaden their horizons in terms of learning new concepts.

Only then will they be able to contribute effectively to the process of

economic growth.

The recent adoption of the International Financial Reporting Standards

(IFRS) for all Financial Statements of Publicly Quoted Companies in

Nigeria is a case in point. Chartered Accountants now have to equip

themselves with new skills and convert their previous data to conform

to new guidelines which are best global practice. The world is now a

global village and thin walls divide continents if at all. The Institute of

Chartered Accountants of Nigeria (ICAN) should champion this

transition to IFRS to ensure uniformity of process and practices in

Nigeria.

At Dangote Group, we have put in place a process that would facilitate

our conversion to IFRS and Dangote Cement Plc’s financial statements

for the year ended December 31, 2011 will be IFRS compliant in

addition to the SAS.

Page 8 of 8

The key position of Chartered Accountants in the industrial and

commercial world, the high standards of professional conduct and

ethics have created a situation wherein people are looking up to

Chartered Accountants for leadership.

Members of the profession should not be found wanting in this new

responsibility. It is imperative that they take up this challenge of

leadership with humility, dignity and knowledge.

I am happy to note that ICAN MCPEs and other relevant trainings

organized by ICAN are tailored in adequately keeping your members up

to date with the dynamic changing global environment.

Conclusion

So where do Chartered Accountants go from here? The answer, I

believe, is already obvious! Reinvention on a grand scale is the order of

the day. Failure to move with the changing dynamics of the business

world will put the profession at risk. Chartered Accountants must rise

up to the challenges of the times by being more proactive in the

decision-making process of their organization.

Thank you for your time.

Performance Measurement in the Public Sector The Accountability ChallengeSector –The Accountability Challenge

Presented toPresented to

The Institute of Chartered AccountantsThe Institute of Chartered Accountants of Nigeria (ICAN) 41st Annual

Accountants’ ConferenceAccountants ConferenceOn 19 October, 2011

By

11

Sam. S. O. Afemikhe

Performance Measurement in the Public Sector –The Accountability Challenge

P f M t d th A t bilitPerformance Measurement and the AccountabilityChallenge are embedded in

Aristotle’s statement that public funds should bespent publiclyp p y

The transparency and value for money challengeregarding Public Expenditure Management.

22


The annual government budget is a plan of what monies the governmentexpects to receive in Revenues against how much it expects to Expendduring a financial year.

M i f P bli E dit i d ithManaging of Public Expenditure is concerned with Planning

• deciding on total expenditure total and ensuring that they are in linewith macroeconomic and budgeting requirementswith macroeconomic and budgeting requirements

• determination of priorities and allocation of expenditure to reflectpriorities.

• deployment of funds to achieve these priorities.deployment of funds to achieve these priorities.

Control• Ensuring that funds are spent for purpose specified and that

appropriations are not exceeded without appropriate approvals.• Ensuring that the public expenditure provides value for money

expended (economy, efficiency and effectiveness)T ki ff i i h l hi d

33

• Taking effective action when plans are not achieved

FIGURE 1BUDGET PREPARATION AND IMPLEMENTATION

DETERMINATION OF PUBLIC NEEDS THROUGH THE POLITICAL PROCESS

DETERMINATION OF GOODS, WORKS AND SERVICES NEEDS TO SATISFY PUBLIC NEEDS

BUDGET PREPARATION

ALLOCATION OF RESOURCES TO MAJOR FUNCTIONS AND TO

PREPARATION

MAJOR FUNCTIONS AND TO ECONOMIC CATEGORIES WITHIN FUNCTIONS

LEGISLATIVE APPROVAL OF THE BUDGET

BUDGET APPROVAL

44

ORGANISATION OF THE DELIVERY OF GOODS, WORKS AND SERVICES

BUDGET IMPLEMENTATION

FIGURE 2PHASE IN THE BUDGET IMPLEMENTATION PROCESS

BUDGET APPROPRIATION

APPORTIONMENT

COMMITMENT/ORDER OF GOODS, WORKS AND SERVICES

ADMINISTRATIVE PHASES

RECEPTION/VERIFICATION

PREPARATION AND ISSUE OF PAYMENT ORDERS

55

PAYMENT FINANCIAL PHASE


A good budget promotes efficient delivery of public goods and servicesacross sectors (e.g. health, education, transportation, etc.), and does soin a fiscally prudent and sustainable manner, i.e. working within a budgetconstraint.

In terms of accountability, traditional budgetary systems focus onensuring that public expenditure is spent for the purpose specified.

Expenditure is approved by NASS and monitored to ensure that theexpenditure is in accordance with legal and regulatory requirements.

Traditional Budget prevents fraud in public expenditure and achievesnarrow financial control BUT suffers the limitation that it

• Focuses on inputs (money and expenditure on inputs such assalaries, overheads etc). This is an obstacle to transparency as it isnot obvious as to the service being provided.D id i f i h f hi i li

66

• Does not provide information on the cost of achieving policy• Does not provide basis for objective cost/benefit analysis.


In order to lay the foundation for performancey pmeasurement and thus accountability, Publicexpenditure should be informed by

• Comparison of costs against the expected benefit ofexpenditureF l b i id d b dit• Focus on value being provided by expenditure

• Traditional budgets focus on costs but cost are notmeasured comprehensively. Focus being on cost in cashterms. Non cash costs – depreciation, non fundedliabilities under social costs such as environmental costsetc are excludedetc. are excluded

• Focus is on flows not stock of assets and liabilities• Emphasis on single year has implication for current

d i i f t t d b fit d t i

77

decisions as future costs and benefits do not receivesufficient attention (MTFF/MTEP is changing this!).


Budget Implementation (Public Procurement) A d P bli P t S t h ld A good Public Procurement System should:

- Deliver Value- Have fairness in perception and reality

H t ( ll d fi d l ti d d- Have transparency (well defined, regulation, procedures andopen to public scrutiny)

- Apply clear standard tender documents with completeinformation

- Give equal opportunity to all- Uphold Accountability and ethical standard (holding practitioners

responsible for obeying and enforcing the rules) Technical qualification following advertised ITT Award to the Lowest cost Responsive bidder Certification – a BPP confirmation that:

- Process is right- Winner is right

88

g- Cost is right

Performance Measurement/Post Review


Budget Performance is in two foldBudget Performance is in two fold That what is budgeted is spent

Issues are- Capacity- Implementation

F di- Funding

That what is spent delivers the desired outcome That what is spent delivers the desired outcome(Sunday Guardian Headline of October 8, 2011:Federal Government: Many Contracts, Little Result)y , )- Projects are not abandoned- Projects are delivered with economy and

ffi i

99

efficiency- Are effective/attain their set objectives.


Objective of performance measurement in public expenditure Is to bring greater results orientation and accountability to PEM by Is to bring greater results-orientation and accountability to PEM by

focusing on what government achieves with the money it spends. Move beyond preparation of budgets and financial monitoring of

expenditures to evaluating whether government programmes work andexpenditures to evaluating whether government programmes work andwhether budgets actually deliver services.

Focus on the outputs, the reach, the outcomes and the impact of publicexpenditure and programmesp p gThis Involves:• Definition of specific policy goals or objectives – outcomes• Definition of programme/project level performance targets – outputs• Linking budget allocations to these goals (ensuring a logical

sequence from outputs to outcomes in projects and programmesfunded).

• M i d l ti lt f d j t• Measuring and evaluating results of programmes and projects• Basing new budget allocations on results• Establishing new accountability relationships and changing the

incentives of budget managers by making them responsible for

1010

incentives of budget managers by making them responsible forshowing whether outputs were met.


Objective of performance measurement in public expenditure.

That political leaders:• Have information to enforce achievement of output targets• Have incentive to actually enforce achievement of output targets• Are called to account for both the amount of money they spend

and their resultsand their results.

Performance issues which are relevant at every stage of the budgetcycle for individual projects should receive the needed focus:cycle for individual projects should receive the needed focus:• Before hand

- Is this the best project to fund?- Will the project perform well?p j p

• During- Is the implementation of the project going well according to

plan?

1111

p• After

- Has the project delivered the outputs and outcomes expected?

Performance Measurement and Accountability – The Missing LinkPerformance Measurement in the Public Sector –The Accountability Challenge

Performance Indicators● Inputs/Outputs – Examples

Output Efficiency/Productivity Examples:Output Efficiency/Productivity Examples:- Numbers of man-days expended per repair made

(Efficiency)- Number of students transported divided by the cost of

transportation(Productivity)- (Productivity)

● Outcomes (Efficiency, Productivity) Examples - Repair cost per kilometer of roads that were repaired toRepair cost per kilometer of roads that were repaired to

satisfactory conditions (Efficiency)- Number of patient seen per doctor per day (Productivity)

1212

- Average Number of invoice processed by accounts staff

Performance Measurement and Accountability – The Missing Link


Link

It is very easy to be entirely focused on inputs in the public sector and ignore results (outcomes)and ignore results (outcomes)

Measurement of results is the link to outcomes analysis and input/output evaluation.

• Measurement is a call to action

• If you do not measure results, you cannot tell success from failure

• If you cannot see success you cannot reward it

• If you cannot reward success, you are probability rewarding failure

• If you cannot see success you cannot learn from it

1313

If you cannot see success, you cannot learn from it

• If you cannot demonstrate result, you cannot win public support.

A Lesson from the USA


In the United States of America (USA) for instance, Public Sector PerformanceMeasurement is guided by the Government Performance and Results Act 1993.(GPRA).

GPRA itself is an offshort of Planning, Programming and Budgeting System in USADepartment of Defence that is result oriented budgeting

Section 2(b) of this act requires spending agencies to develop performance plansSection 2(b) of this act requires spending agencies to develop performance plansand targets which clearly:• Establish performance goals to define the level of performance to be achieved by

a project/programme activity;• Express such goals in an objective, quantifiable and measurable form unless

authorised to be in an alternative form;• Briefly describe the operational process, skills and technology and the

human, capital, information or other resource required to meet the performancelgoals;

• Establish performance indicators to be used in measuring or assessing therelevant output, service levels and outcomes of each programme activity;

• Provide a basis for comparing actual programme results with the established

1414

Provide a basis for comparing actual programme results with the establishedperformance goals; and

• Describe the means to be used to verify and validate these values.

Performance Measurement Tools- BPP carries out:


• Prior reviews• Post reviews.

- Auditor General Audits and Report to NASS (PAC).P f M t- Performance Measurement

- Benchmarking- Value Analysis- Value for Money ReviewsValue for Money Reviews

Performance Measurement- Performance Measurement is an important tool for evaluating value for

money in the public sector.- A survey of public sector managers in some local authority and health

sector department in the UK (Jackson 1984) regarded the best features ofperformance measures to be:• the ability to make comparisons of actual performance against targets• the ability to make comparisons of actual performance against targets,

previous periods, or similar departments or programme• the ability to highlight areas of interest and the relevant questions to

ask

1515

• the ability to provide a broad range/comprehensive picture of a service• the identification of trends over time• the development of local benchmarks, norms or targets.

Value Analysis – A look back opportunity

Th i f th ff ti f th t f it l j t


- The review of the effectiveness of the management of capital projects from approval through installation together with any methodologies applied in the process.

C i d t i d t t t l f t l t ll l l i l di- Carried out in order to test value for money control at all levels including Governance project execution.

- Value analysis reviews a project’s effectiveness in the following ways;

• The reconfirmation of the objectives that underlined the project in its conception stage and in ensuring that on completion of the project, the objectives are still relevant.

• The confirmation that the activities and output of the project areconsistent with its mandate and are relatively linked to the attainment of the objectives.

• Assessing the impact and effects both intended and unintended resulting from the execution of the project and in considering whether.

the unintended effect outweighs the benefits of the projects; and

1616

- the unintended effect outweighs the benefits of the projects; and- the project in any way or manner complement, duplicate, overlap

or work at cross purpose with other projects and to what extent.

Value Analysis – A look back opportunity (contd.)


• Revenue or cost savings reported since the completion of the project with particular reference to:- the necessary performance indicators relating to the project

outcomes;outcomes;- confirmation that the project has achieved what was expected; and- assessment of reasons for failure to meet objectives

• Value analysis would evaluate whether there are better cost effective alternative projects which could have achieved the objectives better or delivering the existing objectives.

The USA GPRA requires that 2% of project cost be set aside for value analysisanalysis

The challenge here : Do we learn lessons

Yes, we must!

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: Do we pursue process improvement?

This is imperative otherwise we will never step up!!

Mind the Gap!


p

Why benchmark – To establish the gap/Performance deficit

Reasons to benchmark activities: Reasons to benchmark activities:

● To establish the difference

● To set the highest possible standard

● To learn from Best in Class (BIC)( )

● Creating synergy of ideas

● Reduction in prevention costs● Reduction in prevention costs

● Appraisal opportunities

1818

● Reduction in failure costs


Chart 1 – Performance GapChart 1 Performance Gap

Gap

Performance

Gap

Actual Performance

Target Performance

Best Practice

1919

Benchmarking can deliver major benefits


• Achieving economy in the form of lower prices and higher productivity

• Achieving efficiency by comparing the costs of providing services and the contribution these services make to the organisation with what is achieved in other organisations

• Achieving effectiveness in terms of actual business objectives realized compared with what was plannedp p

• Help to expose corruption and foster accountability and transparency.

Starting down the road to successful benchmarking means asking the following fundamental questions:following fundamental questions:• What is wrong with what we do?• How can we do it better?• Will it give us a competitive edge or improved service delivery• Will our work force be able to change?• How much will it cost?

2020

Benchmarking is therefore not only an Accountability tool but also a process improvement tool.

Key process improvement Benchmarking Questions


y p p g Q

• Where do we want to be?

• How do we get from here to there?

• What can be done to close the gap?g

• How can the positions be reversed to narrow rather than widen the gap?

• How far will you go to adopt and adapt new practices?

• What is involved, how much will it cost and how long will it take?

• What are the broader implications particularly for change management?

2121

management?

Value for Money Reviews.Performance Measurement in the Public Sector –The Accountability Challenge

VFM is the Validation of Project/Service for Economy, Efficiency & Effectiveness

► Economy ● Validating Quantity, Quality and Price - Contracting Strategy

► Efficiency ● Validating input output Project execution risk management schedule- Project execution, risk management schedule etc.

► Effectiveness ● Validating the project or service ultimately delivered.

Look back review value analysis and

2222

- Look back review value analysis and benchmarking

Figure 3 – Auditing the 3Es


ACTUALINPUTS

[Efficiency](the ratio of actual

ACTUALOUTPUTSINPUTS (the ratio of actual

input to actual outputs)

OUTPUTS

[Economy](the ratio between

[Effectiveness](the ratio of actual

planned inputs and actual inputs in terms of unit)

outputs to planned outputs)

PLANNED OUTPUTS(Objectives, goals etc.)

PLANNED INPUTS

2323


Overarching challenge is

Cultural – Managing the necessary change. Record keeping

A f d t d l t d d i ti- Accuracy of data and related derivatives- Timeliness of Reports

Mandatory:• At CAPITAL (CAPEX) sanction and RECURRENT (OPEX) approval:

All Business, Technical, cost and Schedule data is submitted in a formth t ll P f M t d B h ki M t i tthat allows Performance Measurement and Benchmarking Metrics tobe calculated (This would represent planned metrics)

• At completion: Actuals (at the same level of detail as the estimates)Business Technical cost and Schedule data is submitted in a formBusiness, Technical cost and Schedule data is submitted in a formthat allows Performance Measurement and Benchmarking Metrics tobe calculated (This would represent actual metrics)

• At completion: Comparison of the metrics (Business, Technical – Cost

24

At completion: Comparison of the metrics (Business, Technical Costand Schedule) both within the region and with other similar facilitiesworld wide to establish potential and target benchmarks.


Public Private Partnership (PPP) – require transparency• B t t i t i bli i i• Best way to secure improvements in public services given

scarce government resources• Bringing private sector management and financial skills to

t b tt VFM i th bli tcreate better VFM in the public sector• Public Finance Initiative (PFI), PPP to design, build, finance and

operate public facility or service with cost recovered from futureearnings

• Risk in project (financial, technical, legal, political, commercialetc.) usually shared to party best equipped to manage themunlike the traditional procurement

• Competition should be injected into PPP tenders using a towstaged tender method

• Cost transparency is essential for public confidence andminimisation of public back charge

• Projects need to be benchmarked in all respect for cost/benefit

25

j pto the people to be maximised

• Should be better integrated into our annual/MTEP programme


Key Accountability Questions1) How can the bureaucracy in budget implementation be made more1) How can the bureaucracy in budget implementation be made more

efficient to allow for smoother budget for performance.2) Can government embrace performance measurement in its

activitiesactivities3) Can government pursue Value for Money (Economy, Efficiency and

Effectiveness) in its activities4) The challenge is corruption and inefficiency4) The challenge is corruption and inefficiency

This can be squarely confronted with• Value Analysis; and• BenchmarkingBenchmarking.

5) The key question is Do we learn from our mistakes?6) Are we ready to put politics and self interest aside and pursue

process improvement so that we can close rather than widen theprocess improvement so that we can close rather than widen thegap?

7) Can we hold the public sector accountable by service charters thatdefine output and outcomes in every budget line item?

26

define output and outcomes in every budget line item?

We will be deemed ready when we answer YES to each and everyone ofthese questions.

CONCLUSION


CONCLUSION

It is important that the Nigerian public sector should emphasiseperformance and value for money not only to enhanceproductivity, economic growth and thus raise the generalstandard of living of the citizenry but above all to ensureaccountability.

This objective can be delivered by the application ofThis objective can be delivered by the application ofPerformance Measurement in our Public expendituremanagement.

2727

management.

2828

INFRASTRUCTURE TRANSFORMATION AND SOUND FINANCIAL MANAGEMENT FOR

NIGERIA SOCIO‐ECONOMIC DEVELOPMENT.

A t d t th 41 t A l A t t C fA paper presented at the 41st Annual Accountants Conferenceby

The Coordinating Minister for the Economy & the Honourable Minister of FinanceMinister of Finance

(CME & HMF)DR (MRS) NGOZI OKONJO IWEALA

GLOBAL CONTEXTGLOBAL CONTEXT

• UNCERTAINTIES IN THE WORLD ECONOMY: POOR FISCAL SUSTAINABILITY / DEBT OUTLOOK

DEBT CRISIS IN EUROPE

DEBT CEILING / BUGDET CRISIS IN THE USA

SLOW GROWTH IN JAPAN SLOW GROWTH IN JAPAN

POLITICAL TURMOIL IN THE MIDDLE EAST & NORTH AFRICA

INTERMITTENT FOOD PRICE CRISIS

IMPACT OF CLIMATE CHANGE

IN SUMMARY, WE FACE A MORE UNCERTAIN GLOBAL ECONOMY:

185 CRISES IN THE 1980s COMPARED TO 360 OVER THE LAST DECADE

HOWEVER, GLOBAL UNCERTAINTY IS MITIGATED BY STRONG ECONOMIC PERFORMANCE IN CHINA AND INDIA, WITH GROWTH FORECASTED AT 7+% PER ANNUM.

PROJECTED WORLD REAL GDP GROWTH: 3.2% in 2011, 3.6% in 2012, and 3.6% in 2013.

While the sovereign debt crises have been most pronounced in only a few Eurozone countries they have become a perceived problem for the area as a whole. Debt‐GDP

ratio around the region is deteriorating with Greece and Italy ratios almost climbing to 120% Where then is the safe haven?120%. Where then is the safe haven?

DIRECT POSSIBLE IMPLICATIONS FOR NIGERIADIRECT POSSIBLE IMPLICATIONS FOR NIGERIA OIL ACCOUNTS FOR 70% OF TOTAL BUDGET REVENUE.

MORE VOLATILITY IN ECONOMIC GROWTH

300

Pro-cyclical Public Expenditure Profile: Oil Revenue and Expenditure (1971-2010)

200

250

xpen

ditu

re

50

100

150

in R

even

ue/E

x

-50

0

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

% C

hang

e

-100

% Change in Oil Revenue % Change in Total Expenditure

MACROECONOMIC REFORMS AND STABILITYMACROECONOMIC REFORMS AND STABILITYKEY CHALLENGES AND PRIORITIES:

(A) FISCAL OPTIMIZATION FISCAL DEFICIT HAS BEEN RISING, AT 3.51% IN 2010.

TARGET 3% STARTING 2012;DEVELOP FOUR-YEAR MTEF

RECURRENT EXPENDITURE UNACCEPTABLY HIGH – AT 73.4% OF TOTAL EXPENDITURE – RELATIVE TO COMPARABLE COUNTRIES

TARGET BELOW 70% BY 2015TARGET BELOW 70% BY 2015

CAPITAL EXPENDITURES STAGNANT, 25% TOTAL EXENDITURES

TARGET UP (1 5% PER YEAR) 5% BY 2015TARGET UP (1.5% PER YEAR) 5% BY 2015

DOMESTIC DEBT HIGH AND RISING – US $31 BILLION OR 16.4% GDP. TARGET HELD STEADY AT 16.4% OF GDP

MACROECONOMIC REFORMS AND STABILITYMACROECONOMIC REFORMS AND STABILITY

(C) OTHER TARGETS & SOLUTIONS

GDP GROWTH 7-8% PER ANNUM

( )

NON-OIL GDPGROWTH

FDI

8-10% PER ANNUM

INCREASE BY 5% FDI

SOVEREIGN WEALTH FUND

INCREASE BY 5%

INSTRUMENT TO REGULATE PRO CYCLICALITY SUPPORTWEALTH FUND

SOVEREIGN

PRO-CYCLICALITY. SUPPORT INVESTMENT AND BUDGET

RESTORE TO PREVIOUSCREDIT RATING RESTORE TO PREVIOUS RATING. INVESTMENT GRADE (BBB) BY 2015

I f t tInfrastructure transformation: A key component of vision p

20:2020

Mr. President is committed to investing in priority sectors in the areas of Security, Infrastructure, Agriculture, Manufacturing, Housing, Entertainment services, education and health.

Agriculture has suffered from years of mismanagement, inconsistent and poorly conceived government policies, and the lack of basic infrastructure Still the sector accounts for about 33% ofinfrastructure. Still, the sector accounts for about 33% of GDP and two-thirds of employment.

So much has been done on infrastructure

CAPITAL BUDGET EXPENDITURE ON INFRASTRUCTURE 2006 2007 2008 2009 Total

N'Billi N'Billi N'Billi N'Billi N'Billion N'Billion N'Billion N'Billion

Power 73.587 51.664 27.878 96.898 250.027Transportation works (Roads) 72 783 149 127 77 36 115 487 414.757Transportation works (Roads) 72.783 149.127 77.36 115.487 414.757

Railways 0.885 8.828 6.943 15.642 32.298

Aviation 0.359 7.341 10.484 10.313 28.497Total 147.614 216.96 122.665 238.34 725.579In addition the sum of US$5.375 billion was approved and sourced from Excess Crude Savings Account as intervention fund for power sector by Federal, States and Local Governments in the sum of US$2.463 billion,

$ $US$1.948 billion and US$.963 billion respectively.

Source: Federal Government Financial Statements

What is theWhat is the di tidirection on

Infrastructure?

Investing in infrastructure – Power SectorInvesting in infrastructure Power Sector

INFRASTRUCTURE POWER

LONG-TERM STRATEGY :GOVERNMENT INVESTMENT IN LARGE COAL PLANTS AND HYDRO (DUE IN 7 YEARS) GOVERNMENT INVESTMENT IN LARGE COAL PLANTS AND HYDRO (DUE IN 7 YEARS)

• COAL 3,500 MEGAWATTS• HYDRO 3,500 MEGAWATTS

SUPERGRID• SUPERGRID DUE IN 4 YEARS TO COST US$ 4 BILLION.

INTERIM STRATEGY (CONTINGENT UPON IMPLEMENTATION OF COST REFLECTIVE TARIFF REGIME)

• NIPP 4,775 MEGAWATTS WITHIN 3 YEARS

• PURCHASE FROM BULK TRADERS 6,000 MEGAWATTS

• PRIVATIZED POWER PLANTS 5,000 MEGAWATTS RECOVEREDPRIVATIZED POWER PLANTS 5,000 MEGAWATTS RECOVERED CAPACITY.

i ti i i f t t i d fi i l…….investing in infrastructure requires sound financial management well planned and strategically mapped

out but funding is crucial!!!!out……….but funding is crucial!!!!

Funding Power ProjectFunding Power Project

Comments Bankable? Estimated

Cost (b)

Funding Source

Cost (b)

1 Mambilla (2,600 MW) Bankable $2.60 Enhanced Budgeting + Export credit

(China/Brazil)

2 Zungeru (700 MW) Bankable $2.20 Enhanced Budgeting + Export credit

(China)

3 Gurara (350 MW) Bankable $0.350 Enhanced Budgeting + Export credit

4 Kaduna (900 MW) Power plant Bankable $1.10 IPP**

5 Abuja (1350 MW) Bankable $1.52 IPP**

6 Rehabilitation of Kainji Dam Bankable NA PPP

7 Rehabilitation of Jebba Bankable NA Grant + PPP (N4bn grant from7 Rehabilitation of Jebba Bankable NA Grant + PPP (N4bn grant from

Japan for rehabilitation)

8 Rehabilitation of Shiroro Bankable NA PPP

9 Rehabilitation & Extension of

Transmission Lines

Not Bankable $2.10 Enhanced Budgeting + Concessional

Loan10 Super Grid Project Not Bankable $6.67 Enhanced Budgeting + Concessional

Loan11 Small Hydro Power Plants Bankable NA Enhanced Budgeting + Concessional

Loan

Source: NPC

Investing in infrastructure – roads, rail, Ports & i ti& aviation

Concrete plans are in place to conclude on‐goingConcrete plans are in place to conclude on going projects on these infrastructures. The following investments targets have been set to achieveinvestments targets have been set to achieve the vision 20:2020 on these Projects:

Roads: Coastal roads, bridges and other k hi h

Railway: Rehabilitation of existing lines and build

Ports: Develop a deep see Port and improve services inkey highways

$3.5billon requirednew lines$13billion required

improve services in existing Ports$5billion required

Funding of Roads and Bridge ProjectsComments Bankable? Estimated

Cost (b)Funding Source

Cost (b)

Shagamu-Benin-Asaba Expressway

Existing/Ongoing rehab. & upgrade

$619m PPP

Abuja-Kaduna-Kano Upgrade & Concession

$300m PPPConcession

2nd Niger Bridge New $253m (N80b) PPP

Loko-Oweto New $54b (360) Enhanced Budgeting + O&M + PPP

Abuja-Lokoja Ongoing N59b ($391m) Enhanced Budgeting + O&M + PPP

Niger Delta Coastal Road New N1,800b ($12b) Enhanced Budgeting + Various Development Banks

Ibadan-Ilorin-Jebba Ongoing N18b Enhanced Budgeting + O&M + PPP

Kano-Maiduguri New N140b ($933m) Enhanced Budgeting

Lagos-Ibadan On concession N89b ($593m) PPP

Apapa-Oshodi Ongoing N5.6b (37m) Enhanced Budgeting

Ajaokuta Access Roads Ongoing N2.5b ($17m) Enhanced Budgetingj g g ($ ) g g

Project Title Bankable/Unbankable Estimated Cost

Funding Source

Funding of Sea Ports and Inland River Ports

1 Lekki Deep Sea Port Bankable NA PPP

2 Akwa Ibom Deep Sea Bankable NA PPPPort

3 Onitsha Inland River Port

Bankable N4.2b Enhanced Budgeting + O&M

4 Baro Inland River Port Bankable N3.6b Enhanced Budgeting + O&M

5 Oguta River Port Bankable N2.7b Enhanced Budgeting + O&M

6 Degema River Port Bankable N1.7b Enhanced Budgeting + O&M

Funding of Aviation ProjectsProject Title Bankable/Unbankable Estimated

C tFunding Source

Cost1 MMIA International Airport

Terminal RemodellingBankable N21b Enhanced Budgeting for Airside and

PPP for Terminals

2 Abuja International Airport Terminal Remodelling (Ai id t t k

Bankable N20.8b Enhanced Budgeting for Airside and PPP for Terminals

(Airside contract work awarded

3 Kano International Airport Terminal Remodelling


4 Enugu International Airport (T i l R d lli )

Bankable N10.5b Enhanced Budgeting for Airside and PPP f T i l(Terminal Remodelling) PPP for Terminals

5 Port Harcourt International Airport (Terminal Remodelling)


6 Bayelsa Airport Un-bankable N1.96b Regular Budgeting7 M id i B i C l b U b k bl N0 9b R l B d ti7 Maiduguri, Benin, Calabar,

Akure, and taxiway at Kano and MMIA

Un-bankable N0.9b Regular Budgeting

8 Calabar International Airport (Terminal Remodelling)

Un-bankable N14.2b Enhanced Budgeting for Airside and PPP for Terminals

Remodelling)

Funding of Housing ProjectsProject Title Bankable/Unbankable Estimated

Cost

Funding Sources

1 600,000 Housing Units

under PPP arrangement

Bankable 104.74 PPP

2 240,000 affordable housing

units by FHA

Un‐bankable 72.35 FMBN to be fully capitalised to at least

100 billion

3 Recapitalisation of FMBN Un bankable 17 233 Recapitalisation of FMBN Un‐bankable 17.23

Sound financial management in meeting i f t t dinfrastructures need

Enhanced budgetinga ced budget gPerformance‐based Budgeting

Effective cash policyEffective cash policyTreasury single Account

Sound payroll management: PersonnelSound payroll management: Personnel costing rising

IPPIS

Quality Financial Reporting

Adopting IFRS/IPSAS GIFMISAdopting IFRS/IPSAS GIFMIS

Still on financial management………..Still on financial management

BOOSTING REVENUE AND PLUGGING LEAKAGES

Let’s take it nationwide……….

…….still on financial management

subsidies removal

Sovereign Wealth Fund

THE END

ICAN 41st Annual Accountants Conference

Improving Accounting and Auditing Practices Globally: the roles of IFAC, Regional Accountancy Bodies and Development Partners, and Lessons

from Experience.

By Ed Olowo‐Okere, Ph.D.

Director, Core Operations Services,

Africa Region, The World Bank.

International Conference Centre, Abuja. October 19, 2011.

1

Improving Accounting and Auditing Practices Globally: the Roles of IFAC, Regional Accountancy Bodies and

Development Partners, and Lessons from Experience.

Introduction

The President of the Institute of Chartered Accountants of Nigeria (ICAN)

ICAN Council Members,

Panel of Discussants

Distinguished Ladies and Gentlemen.

It is a great pleasure to address you today, and I would like to thank the Institute for

inviting me to this important event, and in particular for arranging such a distinguished panel of

speakers. I would also like to take advantage of being on this podium to express my gratitude to

ICAN for recognizing me as one of their distinguished Stars during their 2011 Annual dinner and

awards last April.

I have been asked to discuss the role of IFAC, Regional Accountancy Bodies, and

Development Partners in the improvement of global accounting and auditing practices. Broadly,

I will discuss this topic in three parts. First, I will discuss the fundamental question of why it

matters, i.e. why is it important to improve accounting and auditing practices. In this process, I

will define the benchmark for good accounting and auditing practices. In the second part of the

presentation, I will discuss how IFAC is strengthening accounting and auditing practices. I will

take stock of the status of compliance with SMOs in the world and in Africa, and discuss the

support that professional accountancy organizations have been receiving from IFAC, Regional

Accountancy Organizations and Development Partners. I will conclude by addressing an

important question for the Institute as well as the Accountancy profession in Africa: given the

lessons learned, what should be done differently going forward?

Part I: Why is it important to improve accounting and auditing practices, and what

is the benchmark for good practices?

Why is it important to improve accounting and auditing practices?

The 2008 financial crisis in the United States and the world has exposed critical flaws in

how financial systems operated and were regulated. For many years to come, policy makers,

academics, regulators, economists, etc will continue to learn lessons from and write about this

crisis. One thing that is pretty sure is that investors’ confidence has been badly shaken, and more

than any other players in the market, the accountancy and auditing profession has been

challenged. Let me share with you a key statistic of the Working Group on lessons learned from

the Financial Crisis of the Public Company Accounting Oversight Bodies1 Investor Advisory

Group: nine of the failed financial institutions, including Lehman Bros, Fannie Mae,

Countrywide, had received unqualified audit opinions within months of their demises. As a

result, serious questions have been raised about both the quality of these financial institutions’

financial reporting practices and the quality of audits that permitted those reporting practices to

go unchecked. While it is difficult to blame the auditors for all the failures of the capital market,

investors and policy makers are asking where the auditors were, and why, as the last guardians,

they did not protect the public’s interest. There continues to be questions about the quality of

financial information on which all major economic and market decisions are made.

It is a well known fact that lack of transparency imperils effective governance in

economic entities. A crucial role of the accountancy profession is to help in providing reliable

information for effective decision making, transparency and accountability. This role makes the

accountancy profession one of the most important pillars of the financial system of a country.

Thus, a strong accountancy profession can significantly contribute to strengthening the national

financial system and international financial architecture.

As you know, the critical role of the accountancy profession is not limited to the private

sector. Well-trained accountants and auditors, that are properly regulated and are held to high

ethical codes by a well functioning professional accountancy organization, are needed for the

1 The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports. The PCAOB also oversees the audits of broker-dealers, including compliance reports filed pursuant to federal securities laws, to promote investor protection.

effective functioning of public accountability institutions, including the offices of accountant-

general, auditor-general, and also in support of the committees of public accounts. In fact, the

effective functioning of a country public financial management and accountability system

depends to a significant extent on having qualified accountants and auditors as operators of the

system.

What is the benchmark for good accounting and auditing practices?

The benchmark for good accounting and auditing practices were described in the paper

entitled “The International Financial Reporting and Accounting Issues: Imperatives of

Attainment of Economic Development of Nigeria” that I presented here in Abuja during your

39th Annual Accountant Conference. It comprises three key building blocks:

International Accounting and Auditing Standards, Processes for Applying International Accounting and Auditing Standards, and A Mechanism for Enforcing Compliance with International Accounting and Auditing

Standards.

Standards Processes Enforcement

Figure: Benchmark for Good Accounting and Auditing Practices

International Financial Reporting Standards (IFRS)

Good Corporate Governance

Regulatory Oversight

High Quality Controls within Audit Firms

Sound Profession‐wide Quality Assurance

High Quality and Reliable Financial Reporting

International Standards on Auditing (ISA)

The international accounting and auditing standards consist of the International Financial

Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and

the International Standards of Auditing (ISA) issued by the International Auditing and Assurance

Standards Board (IAASB). The processed of applying standards include, at the minimum: (i)

good corporate governance framework, (ii) high quality controls within audit firms, and (iii)

sound profession-wide quality assurance. The enforcement mechanism needs to be truly

independent, and be capable of monitoring and enforcing compliance with the accounting and

auditing standards, ensuring that companies adopt and maintain sound governance arrangements,

and that the profession’s quality assurance mechanism are maintained and are effective.

I am quite impressed by the considerable progress that has been made since the 39th

Annual Accountant Conference in putting in place most of these building blocks of high quality

accounting and auditing practices. A roadmap for the adoption of IFRS has been developed and

adopted, and the FRC law has been passed and the body constituted to put in place a robust

regulatory oversight for financial reporting in Nigeria. It shows that your conferences are not just

talks but they do lead to concrete actions and improvement in practices, and I would like to seize

this opportunity to congratulate the Institute, and its leadership and members.

To conclude this section, I would like to submit that improving accounting and auditing

practices matter. It is necessary to enhance the performance of both the private and public sectors

of an economy. The alignment of the accounting profession and the regulators around common

objectives and application of principles-based standards will enable companies to produce

consistent financial information globally, which is necessary for investments. Enhanced financial

transparency helps to improve accountability, and therefore contributes to improving governance

and efficiency of economic institutions. Accountancy professionals complying with high quality

accounting and auditing standards can contribute to providing safeguards against malpractices

and misuse of funds, and act as an important variable to improve governance and anti-corruption

measures, which may ultimately result in improved citizen confidence and trust in public

institutions.

Part II: How is IFAC strengthening accounting and auditing practices globally?

What is the status of compliance with SMOs in the world generally and in Africa

specifically? What support has IFAC, Regional Accountancy Organizations and

Development Partners been providing to accountancy professional organizations?

How is IFAC strengthening accounting and auditing practices globally?

Ladies and Gentlemen, the global profession – more than any other players in the

financial market – has been at the forefront of global standards, thanks notably to the

International Federation of Accountants (IFAC). Besides its role in developing international

auditing and accounting standards as well as related pronouncements, in 2004 IFAC launched a

Member Body Compliance Program as an integral part of its 2003 reforms. The Compliance

Program entails a set of indicators, namely Statements of Membership Obligations (SMOs or

Statements) that provide clear benchmarks to current and potential IFAC members to assist them

in ensuring high quality performance by professional accountants.

Essentially, the seven SMOs serve as a framework for credible and high-quality

professional accountancy organizations that are focused on serving the public interest by: (a)

supporting the adoption and implementation of international standards; and (b) maintaining

adequate enforcement mechanisms to ensure professional behavior of their individual members.

Participation in the Program is mandatory for the 164 members and associates in 125 countries.

Five of the Seven SMOs (SMO 2, 3, 4, 5 and 7) cross reference to the five sets of international

standards established by the four independent standard-setting boards supported by IFAC and the

International Accounting Standards Board (IASB). The other two SMOs (SMO 1 and 6)

establish best practice for Quality Assurance Reviews and Investigation and Disciplinary

processes. In accordance with IFAC Constitution and the text of the SMOs, all IFAC members

and associates are required to adopt and support implementation of relevant international

standards (i.e. international accounting, auditing, ethical, education, and public sector accounting

standards), and best practices within their countries, recognizing that in many jurisdictions the

mandate to establish standards and practices does not exist within the member but in some other

regulatory body. In these instances, member bodies are expected to use their best endeavors to

advocate to those having the relevant mandate and support the adoption of the standards.

The IFAC Member Body Compliance Program is a staff driven program reporting to the

Chief Executive Officer. The implementation and operation of the Program is overseen by the

Compliance Advisory Panel (CAP) that also provides advice to the staff. The CAP is comprised

of six highly experienced professionals, one from each major geographic region of the world.

The Program is also subject to external oversight by the Public Interest Oversight Board (PIOB).

The total number of staff supporting the Program has steadily increased over the last six years as

the three phases of the Program were implemented. As of 2011, the Program is administered by

an Executive Director and a team of seven professional and two administrative staff. The staff

has broad global experience with skills in over 10 languages, including French, Spanish, Russian

and Arabic.

The overriding objective of the Compliance Program is to encourage continuous

improvement in the practice of accountancy through an ongoing assessment of IFAC members

and associates’ actions to meet the requirements of the SMOs. The Program has been

implemented in three distinct phases: Part 1, launched in 2004, was a fact gathering exercise

about the legal, regulatory and standard-setting frameworks in each jurisdiction represented by

an IFAC member or associate. Part 2 was launched in 2005 and allowed IFAC members and

associates to self-assess their degree of compliance with the requirements of the SMOs. Finally,

Part 3 was launched in 2007 when IFAC members and associates were requested to draft Action

Plans on activities to make progress on the adoption and implementation of international

standards, the enforcement mechanisms, and the improvement of the quality of audit.

Furthermore, IFAC is assisting Professional Accountancy Organizations in emerging and

developing countries through its Professional Accountancy Organization Development

Committee (PAODC), previously known as the Developing Nations Committee. Africa is

represented in the PAODC by three nominees from the Institute of Chartered Accountants of

Tunisia, the Institute of Certified Public Accountants of Kenya, and the Zambia Institute of

Chartered Accountants. The PAODC’s three key objectives are to: (i) develop the capacity of the

accountancy profession to produce high-quality financial information and sound financial

management systems capable of supporting financial stability, economic growth, and social

progress; (ii) increase awareness building and knowledge sharing regarding international

standards adoption and implementation; and (iii) engage and deepen development

partnerships with the international donor community, regional organizations, and public / private

sector. There is a strong link between the work done by the Compliance Advisory Panel and the

PAODC. For instance, PAODC members support outreach and technical assistance efforts to

further the completion of Part 3 Action Plans.

In addition, IFAC contributes to the Reports on the Observance of Standards and Codes

(ROSC) Accounting and Auditing Program of the World Bank, which assesses accounting and

auditing practices in Bank’s member countries in order to determine the degree of compliance

with international standards. This assessment plays a broader and more macro role in

determining whether countries are complying with adopted standards. Recognizing the

importance of SMO compliance, the World Bank’s ROSC Accounting and Auditing reviews and

follow-up activities give much emphasis on assessing the institutional capacity of professional

accountancy organizations to comply with the SMOs.

Compliance status with SMOs in the world and in Africa

The World Bank ROSC Accounting and Auditing assessments and the SMO compliance

program provide a good overview of the status of accounting and auditing practices in the World

and in Africa. During the past ten years, the World Bank Africa region has undertaken 36 ROSC

Accounting and Auditing assessments in 33 countries,2 including Nigeria. As of today, a

relatively high number of the IFAC’s Compliance Program Action Plans (153) have been

published on the Program website. A large part of these Action Plans have also been updated as

the CAP and IFAC staff consider that it is very important to keep Action Plans up to date to

reflect the Program related activities that are currently being pursued by IFAC members and

associates.

The CAP and staff have also established a monitoring process to review the progress of

IFAC members and associates with respect to the implementation of the action plans they are

implementing to further meet the requirements of the SMOs. This monitoring process allows

them to frequently obtain information about IFAC members’ progress with respect to the

adoption and implementation of the international standards on accounting, auditing, ethics,

public sector accounting and best practices with respect to quality assurance review system and

investigation and discipline mechanisms.

2 Please see Annex -3

So, what are the key findings of the ROSC Accounting and Auditing reviews3 and the

cross-cutting issues emerging from the latest IFAC’s compliance review program?

Overall, there is good progress globally with respect to the adoption and implementation

of international standards by IFAC members and Associates, and more generally with regard to

meeting the requirements of the SMOs. In cases where an IFAC member/associate is not making

progress, it is usually due to specific regulatory circumstances, delays related to the political

process, and/or lack of financial capacity.

Members and associates from Africa are generally progressing well with respect to the

implementation of their planned activities, and thereby further meeting the requirements of the

SMOs. For instance, when Part 3 of the Compliance program started, there were differences

between the levels of compliance of specific IFAC members in Africa when compared with other

organizations from outside the region. This gap is, however, being narrowed as the less

developed organizations make progress on the implementation of the activities they have planned

with respect to the SMOs as well as the implementation of the ROSC Accounting and Auditing

recommendations.

The cross-cutting issues emerging from ROSC Accounting and Auditing reviews4 and

IFAC’s compliance review program can be summarized as follows:

Overall capacity of professional accountancy bodies. The development and effectiveness

of professional accountancy organizations vary greatly within and between Regions and

even within Africa. In fact, several countries in the continent still do not have

professional accountancy organizations, and when they exist, these organizations often

lacked the necessary resources, knowledge and skills to perform their role of building and

maintaining a high-quality accountancy profession as envisaged by the IFAC guidance5.

Education and Continued Professional Development. [Compliance with SMO 2:

International Education Standards for Professional Accountants and Other International

Accounting Education Standards Board (IAESB) Guidance]: The second area of concern

is the extent to which education and training for professional accountants are consistent

with the International Education Standards for Professional Accountants (IES). Overall it 3 For country-level information, please review ROSC A&A reports available at the following address: www.worldbank.org/ifa/rosc_aa.html. 4 For country-level information, please review ROSC A&A reports available at the following address: www.worldbank.org/ifa/rosc_aa.html. 5 IFAC publication on Establishing and Developing a Professional Accounting Body.

varies widely across countries in Africa. Some countries have well-developed post-

university training, practical experience and professional examinations. In many

countries in Africa, however, the requirements for professional accountancy qualification

are significantly lower than the IES. For example, lack of adequate practical training and

assessment in this regard, is a common picture in many countries. The public practice

licensing requirements for auditors and accountants typically fell short of those specified

by IES. Continuing professional development (CPD) is also one of the weaker areas in

the ROSC Accounting and Auditing review countries. Indeed, in many countries in

Africa, CPD has not been implemented, and where CPD requirements are specified, they

are typically not monitored.

Ensuring Compliance with Accounting and Auditing Standards. This is the third area of

concern. The monitoring and enforcement of accounting and auditing standards is often

the weakest element of the accountancy profession, reflecting inadequate capacity and/or

mandate. Achieving compliance with the applicable accounting and auditing standards

remains a significant challenge in majority of the ROSC Accounting and Auditing

countries throughout the world, especially in Africa. For instance, several countries

pinned their hopes on high quality corporate financial reporting by adopting IFRS.

However, in this process, while companies are required to comply with the requirements

of IFRS, in practice compliance is uneven and inadequate. In fact, many countries in the

Africa Region still have not put in place any arrangement for implementing IFRS and

ISA.

Code of Ethics. Many Accountancy professions in the region have adopted the Code of

Ethics of the IESBA without modifications, including all subsequent amendments.

However, challenges remain in the implementation of the various codes. Professional

accountants must, however, strive to comply with the ethical standards of their

organizations given the great expectations from investors, the public, and policy makers.

How are regional accountancy organizations and development partners facilitating

compliance with SMOs and contributing to the overall efforts to improve accounting and

auditing practices?

Regional accountancy organizations and development partners have supported the

profession in many ways, including advocacy, analytical work, technical assistance and capacity

building projects. We have already mentioned a few of them, including the important role played

by the World Bank in the ROSC-Accounting and Auditing Assessments.

In addition, during the past ten years, the Africa Region Financial Management Unit of

the World Bank has established an impressive record of 41 capacity building projects6 in

different Africa countries, and more are underway. The main focus areas of these projects

include: (i) updating the legal framework of accounting and auditing; (ii) developing and

strengthening professional accountancy organization; (iii) strengthening professional

accountancy education and training arrangements, including continuing professional

development; (iv) strengthening institutional arrangements for issuing, disseminating, monitoring

and enforcing internationally comparable accounting and auditing standards—e.g. IFRS, ISA,

and IPSAS; and (v) upgrading curriculum, and accounting and auditing instruction in higher

educational institutions.

Furthermore, as you all know, the World Bank Africa Region supported the

establishment and eventually the launching of the Pan African Federation of Accountants

(PAFA) in Senegal in May 2011. We see PAFA as an important vehicle to accelerate the

development of the profession in the continent, and to strengthen its voice on the global stage.

PAFA will need to build on the work done by other sub-regional organizations, such as the

Association of Accountancy Bodies of West Africa (ABWA) and the Eastern, Central and

Southern Africa Federation of Accountants (ECSAFA). These associations have supported their

member bodies in various ways to improve accounting and auditing practices mainly through

networking, knowledge sharing, advocacy, and direct assistance to less developed members. The

World Bank has in turn supported these regional organizations to provide services to their

member bodies and individuals in practice. In addition to supporting individual country

professional accountancy bodies, the World Bank had also supported sub-regional accountancy

6 Please see Annex 2

organizations so they can better serve their member bodies. For example, the World Bank

provided two grants to ECSAFA to strengthen and harmonize accounting and auditing practices

and standards in the private sectors of member countries. Similarly, the World Bank provided a

grant to ABWA to facilitate the adoption of international standards and improve professional

accounting practice in member countries, and support the implementation of the Accounting

Technician Scheme of West Africa (ATSWA).

Let me pause here to thank ICAN for its excellent work and capacity building efforts in

ABWA countries, especially during the implementation of the ABWA IDF Grant. The

implementation completion review of the grant rated the achievements of the development

Objectives as highly satisfactory. As a testimony, during the PAFA conference, I was

approached by several French speaking countries in the region who commended ICAN for its

leadership during the implementation of the grant. They insisted on your efforts to reduce the

language barriers and support less advanced professions in the sub-region through capacity

building activities. I strongly encourage you to continue these efforts.

This leads me to the concluding section of this presentation where I will try to address the

following questions: What more should IFAC, regional accountancy organizations and

development partners be doing to facilitate the development of the profession, and to improve

accounting and auditing practices in Africa? What are the lessons learned from past and current

activities of FAC, regional accountancy organizations and development partners, and what

should be done differently going forward?

Part III: What are the lessons learned from past and current activities of IFAC,

regional accountancy organizations and development partners, and what should be done

differently going forward?

Several lessons can be drawn from the various efforts to improve accounting and auditing

practices in developing countries, including analytical reviews, policy advice, technical

assistance, and implementation of projects/grants, but I will just highlight here the key ones. A

common lesson learned from the implementation of Bank-funded operations, for example, to

support the improvement of accounting and auditing practices is that reforms cannot be

completed under one project or grant. There is always a need for follow-up activities and

additional funding. Also, we have observed that there is a need for greater ownership of reforms

by the profession, i.e. ownership beyond the government or oversight/regulatory agency.

Another important lesson is that reform actions need to be better sequenced and designed in

ways that are aligned with the capacity of individual professional bodies and countries.

Interestingly, we found in many countries that the divergence of practices between public and

private sectors add to the complexity of reform activities as well as the efforts required to

implement them. Finally, capacity strengthening is required at the individual national

professional accountancy organization level as well as at the sub-regional or regional

accountancy organization level. While interventions at the sub-regional or regional level can help

to reach several national accountancy bodies, they cannot tackle all the areas where

improvements are needed because of differences in country contexts as well as the need to

engage with country stakeholders that are often not represented in sub-regional or regional

accountancy organizations.

In closing, let me share with you few areas where I believe we can do things differently

going forward.

Funding of reforms. There is a need to secure a pool of resources for accounting

and auditing reforms that various stakeholders could contribute to, and less developed

accountancy bodies could then access, as appropriate. IFAC and the World Bank are currently

spearheading an initiative in this regard, which would result in an MOU between IFAC and

development partners. The challenge is to broaden this initiative so other stakeholders could also

participate in the initiative.

Improving the sequencing of reforms is key. Given the challenges in the sector

and the weak capacity of many professions in the continent, we need better design and

sequencing of reforms in a manner similar to the platform approach for public financial

management a few years ago. This would ensure that there is a strong foundation for reforms

and one reform action builds on previous action(s).

Ownership and sustainability of reforms. This is a major challenge and it calls

for more commitments by members of the profession. Membership contributions are still a major

challenge leaving the professions with very few means to achieve their goals. Hence, there is a

need for members to step up and contribute to the development of the profession by giving more

time and being up to date in their contributions. Reforms cannot be sustainable without

commitment and ownership from members of the profession.

Improved focus on compliance. The issue of compliance is a global challenge

and needs bold action from the profession. It is not sufficient to have good standards and rules in

place; it is important to ensure that there is strong compliance with the rules and standards.

Strong monitoring of compliance is therefore essential to ensure the credibility of the profession.

Compliance with Ethical standards: While investors and public confidence is

easily shaken, it is hard to restore. It is by holding to high standards that we will be able to gain

[or regain] this confidence. The profession is emerging, to some extent, untouched from the 2008

crisis, but this could be the last time investors, policy makers, and other players are overlooking

any implication of this profession in global financial crises. We need to remember that the

quality of the information we are certifying or providing will impact on people’s assets, lives,

and future. Therefore, more than ever we need to play our role of last guardians, and take the

necessary steps to achieve the objective of high quality financial information and thereby renew

confidence in the Profession.

Reducing the barriers between the public sector and the private sector. This

is an area where more needs to be done. The profession should be developed in such a way that it

serves the interests of both the public and private sectors. Therefore, compliance with SMO 5,

International Public Sector Accounting Standards and other IPSASB pronouncements should be

part of the Professional Accountancy bodies’ strategies. It implies not only a strong collaboration

with public sector oversight institutions, but also gradual development and integration of public

sector curriculum into professional accountancy qualifications.

IFAC, regional accountancy organizations and development partners can and should do

more to assist the profession in the overall process of improving accounting and auditing

practices globally, and developing the accountancy profession in Africa. What IFAC and

regional accountancy organizations can do will to a large extent depend on your role and

financial contributions as members of the global profession. I mean ICAN and its members have

a key role to play. I mentioned earlier on your commendable role in ABWA activities. A similar

role is expected in PAFA activities, and I hope we can continue to count on your goodwill.

Finally, I would like to leave you with one important thought: ICAN can and

should play a leading role in improving the capacity of less advanced professional

accountancy organizations in Africa. Being a strong professional body in Africa, ICAN has a

responsibility to assist its less developed professional accountancy bodies in neighboring

countries to improve and become well developed professional accountancy bodies. In this regard,

ICAN may learn from the experience of twinning partnership role played by ICAEW, ICAS,

Irish CPA Institute, ACCA, Indian Institute of Chartered Accountants, Royal NIVRA

(professional accountancy organization of the Netherlands), and others with less developed

professional accountancy bodies. ICAN has comparative advantages in many areas, which can be

deployed in capacity building and technical assistance to less professional accountancy bodies in

the rest of Africa, and why not in outside Africa as well.

I would like to end my presentation by congratulating the organizers of this conference

for an excellent job. Also, many thanks to you, distinguished ladies and gentlemen, for your

attention. God bless.

Annex 1: World Bank Supported Accountancy Development Projects in Africa Region

1. IDF project--ABWA-Strengthening and consolidation of professional accounting and auditing practices in ABWA (FY2006)

2. IDF project--Benin: Strengthening capacity of the accountancy profession (FY2007) 3. FIRST Initiative project--Botswana: Updating accounting and auditing legislation (FY2006) 4. FIRST Initiative project--Botswana: Supporting establishment of the Botswana Accounting

Oversight Authority (FY2009) 5. IDF project--Botswana: Strengthening Botswana Institute of Accountants (FY2008) 6. IDF project--Burkina Faso: Support to the Chartered Accountant Board (FY2010) 7. IL project--Burundi: Strengthening the accountancy profession as a component of Financial and

Private Sector Development Project (FY2010) 8. IDF project--Cameroon: Support to the accountancy profession (FY2010) 9. IDF project--Comoros: Supporting implementation of IFRS as a part of the project Capacity

Building in Banking Supervision (FY2010) 10. IDF project--Cote d’Ivoire: Support for the accountancy profession (FY2010) 11. IDF project--DRC: Strengthening accounting and auditing institutional framework and practices

(FY2005) 12. IDF project--ECSAFA: Harmonization and Upgrading of Accounting and Auditing Practices in

SADC Region--Angola, Botswana, DRC, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Mauritius, Seychelles, South Africa, Tanzania, Zambia, and Zimbabwe (FY2002)

13. IDF project--Ethiopia: Support to the accountancy profession (FY2010) 14. IDF project--The Gambia: Strengthening the accounting profession (FY2010) 15. FIRST Initiative project -- The Gambia: Strengthening the regulatory framework of accounting

and auditing (FY2011) 16. IDF project--Ghana: Institutional support to the accountancy profession (FY2010) 17. FIRST Initiative project--Ghana: Strengthening the Institute of Chartered Accountants, Ghana

(FY2010) 18. IDF project--Ghana: Support to the accountancy profession (FY2006) 19. FIRST Initiative project--Kenya: Establishing audit quality review program at ICPAK (FY2005) 20. FIRST Initiative project--Kenya: Strengthening accounting and auditing legal framework

(FY2011) 21. IDF project--Lesotho: Capacity Building of the Institute of Accountants (FY2008) 22. IDF project--Liberia: Strengthening the Liberian Institute of Public Accountants (FY2010) 23. FIRST Initiative project--Malawi: Developing ROSC A&A follow-up Country Action Plan

(FY2008) 24. IDF project--Malawi: Strengthening the accountancy profession (FY2009) 25. IDF project--Malawi: Support to the accountancy profession (FY2002) 26. IDF project--Mauritania: Support to the accountancy profession (FY2005) 27. BB support--Mauritius: Drafting the Financial Reporting Act (FY2003) 28. FIRST Initiative project--Mauritius: Establishing the Financial Reporting Council (FY2005) 29. IL project--Mozambique: Strengthening the accounting profession and enhancing corporate

financial reporting, as a component of Competitiveness and Private Sector Development Project (FY2009)

30. IL project--Mozambique: Supporting IFRS implementation, as a component of Financial Sector Technical Assistance Project (FY2006)

31. IL project--Nigeria: Capacity strengthening of the Nigerian Accounting Standards Board (NASB), as a component of Federation Government Economic Reform and Governance Project (FY2005)

32. IDF project--Nigeria: Enhancing the quality of accounting practice (FY2006)

33. IDF project--Nigeria: Capacity strengthening of ICAN to support national and regional accountancy development (2010)

34. IL project--Rwanda: Institutional capacity building of the Institute of Certified Public Accountants of Rwanda, as a component of Private Sector Competitiveness and Enterprise Development Project (FY2008)

35. IDF project--Senegal: Support to the accountancy profession (FY2006) 36. IDF project--Sierra Leone: Support to the accountancy profession (accounting and auditing

standard setting and dissemination) (FY2006) 37. FIRST Initiative project--South Africa: Drafting Auditing Profession Act (FY2004) 38. FIRST Initiative project--Tanzania: Updating accounting and auditing legislation (FY2006) 39. IL project--Tanzania: Strengthening capacity of National Board of Accountants and Auditors

(NBAA), as a component of Financial Sector Support Project (FY2006) 40. IDF project--WAEMU: Development of accounting regulation institutions and auditing

profession (FY2009) 41. IDF project--Zimbabwe: Strengthening accounting and auditing oversight at PAAB (FY2011)

Annex 2: Some Examples of the World Bank-funded Accounting and Auditing Capacity Building Projects in the

1. ABWA-Strengthening and Consolidation of professional Accounting and

Auditing Practices in ABWA Description of the project: The objective of this grant request is to facilitate the adoption of international standards and improve professional accounting practice in ABWA member countries. To achieve the above objectives, the grant financed the following main categories of activities: 1. Dissemination of International Standards in Accounting, Auditing and Education 2. Development of a Harmonized Framework for Professional Accounting Education and Practice 3. Knowledge Management Also, the grant supported ABWA to put in place the Accounting Technicians Scheme West Africa (ATSWA). The objectives on the Scheme are as follows: i. To provide a recognized qualification for the accounting and auditing staff employed in the public sector, industry, commerce and in various offices of practicing accountants. ii. To help meet the need for middle-level accounting personnel in the economy especially for the accounting and finance departments of various government agencies and parastatals. iii. To give status to Accounting Technicians iv. To provide an opportunity for the Accounting Technicians to progress towards “Professional Qualification” as Chartered Accountants The ATWSA scheme has been developed and ongoing in West African countries. In this regard: (a) All 12 study packs of the ATSWA uniform education and examination scheme has been printed and made available to participating countries. The ‘Insight’ which contains past questions and suggested solutions has also been translated to French. (b) The French version of the syllabus is being studied by the Francophone member countries with a view to harmonizing same with the OHADA system. (c) Over 3,200 students from Nigeria, Ghana and Liberia have successfully completed the ATSWA scheme. 2. Botswana--Updating accounting and auditing legislation; and Supporting

Establishment of the Botswana Accounting Oversight Authority Description of the project: This project provided assistance to the Ministry of Finance to prepare draft laws--Accountants Act, and Financial Reporting Act--to modernize legal backing for the Botswana Institute of Accountants; and establishment of the Botswana Accounting Oversight Authority. The project also includes support for start-up work of the Botswana Accounting Oversight Authority. The two laws were passed by the National Assembly of Botswana in July 2010. 3. Botswana--Strengthening Botswana Institute of Accountants Description of the project: This project supported the establishment of a twinning arrangement between Botswana Institute of Accountants and a strong professional accountancy body. The twinning partner provided assistance to the BIA to launch a national professional accountancy examination, and to put in place arrangements for functioning as a modern professional accountancy organization. The project also includes a

component on upgrading accounting and auditing curriculum and teaching in higher educational institutions. 4. Eastern, Central and Southern African Federation of Accountants (ECSAFA) Description of the project: The purpose of this grant is to contribute to the strengthening and harmonization of accounting and auditing practices and standards in the private sectors of the region. Its specific, verifiable objectives are to: facilitate the access of the region’s accountants and auditors to international standards; train a group of peer reviewers from among regional professionals to help accountants and auditors understand and implement the internationally recognized standards; and create among the region’s accountants and auditors a new understanding of international expectations that will serve as a basis for harmonization of practice in the profession throughout the region. The three pronged approach will address the need for harmonization in the accountancy profession and will improve the business climate: raising standards of accounting and auditing; ensuring Compliance with Standards; and strengthening ECSAFA Secretariat to remove obstacles for compliance and monitor progress. 5. Ghana--Strengthening the Accounting Profession Description of the project: This project aims to strengthen the capacity of Ghana's national professional accountancy body, Institute of Chartered Accountants-Ghana (ICAG). Specific focus of this project is on enhancing international recognition of the professional accountancy qualification awarded by ICAG. A twinning arrangement with a strong professional accountancy body is being established to achieve the project objectives. 6. Ghana--Institutional Support to the Accountancy Profession Description of the project: This project supports further strengthening of the Institute of Chartered Accountants, specifically through 1) providing support for the dissemination and sensitization of the reporting requirement of IFRS; 2) developing and delivering specialized training programs for public sector accountants on IPSAS; and 3) providing support for the development of electronic resource libraries and on-line learning centers for the trainee accountants, members and the general public. 7. Kenya--Audit Quality Review Program Description of the project: This project assisted the Institute of Certified Public Accountants of Kenya (ICPAK) to strengthen its capacity to assist its members in enhancing the quality of audit. The project supported ICPAK to develop its practice review capacity, and inform its members about the process of monitoring the audit activities. A generic audit practice manual was also developed and disseminated under this project. 8. Liberia--The liberian Institute of Certified Public Accountants Description of the project:

Although this project was prepared and approved before launching the ROSC A&A exercise, the project implementation is planned to be shaped in line with the policy recommendations of ROSC. The objective of this project is to transform and empower LICPA by building its capacity to be able to educate, train and regulate the accountancy profession in Liberia. The overall expected outcome is improved transparency and accountability in both the private and public sectors through better financial reporting and oversight arrangements. This project will also support strengthening of the secretariat of LICPA. 9. Malawi--Strengthening the Accountancy Profession Description of the project: This project supports the establishment of a twinning arrangement between Society of Accountants of Malawi (SOCAM) and a strong professional accountancy body. The twinning partner provides technical assistance to SOCAM mainly to strengthen its institutional capacity to comply with the Statements of Membership Obligations of IFAC, and to develop and operationalize a national professional accountancy qualification. 10. Mauritius--Preparation of the draft "Financial Reporting Act." The law was

enacted in 2004. Description of the project: ROSC program supported the Ministry of Industry, Financial Services and Corporate Affairs to develop a new law--Financial Reporting Act. The new law provided legal backing for accounting and auditing standard setting in compliance with international standards, establishment of the Mauritius Institute of Accountants, and establishment of the Financial Reporting Council as an independent oversight body. 11. Mauritius--Establishing Financial Reporting Council Description of the project: This project assisted with the establishment and initial operation of the Financial Reporting Council (FRC) in Mauritius. This project has supported actions for strengthening and effectiveness of the accounting and auditing industry in Mauritius. The two main outputs of the project were: (i) the successful establishment of the FRC, including its executive arms, complete with policies and procedures documentation and a safe transition of responsibilities from existing regulators; and (ii) the assessment, development and delivery of a capacity building program to ensure the sustainability of the FRC. Mozambique--Competitiveness and Private Sector Development (sub-component: strengthening the accounting profession and enhancing corporate financial reporting) Description of the project: A sub-component of the Competitiveness and Private Sector Development Project supports operationalization of the newly established professional accountancy body through twinning arrangement with a strong member body of IFAC. Prior to launching of this project, a component of the Financial Sector Technical Assistance focused on IFRS implementation in the banking sector; and provided training to the corporate accountants on IFRS, and developed IFRS implementation materials. 12. Nigeria--Federal Government Economic Reform and Governance Project

(A sub-component on Private Sector Accounting and Auditing) Description of the project: A sub-component of the project focused on improving financial reporting practices by strengthening the institutional capacity of Nigerian Accounting Standards Board (NASB). The project activities aimed at implementation of some key recommendations of the ROSC A&A report and a part of the country action plan. 13. Nigeria--Enhancing the Quality of Accounting Practice Description of the project: The project assisted ICAN to develop the capacity to do technical research and curriculum development, and to implement an enhanced curriculum for professional accounting education, and to monitor quality compliance by its members with standards and codes of ethics. 14. Nigeria--Capacity Strengthening of ICAN to Support National and Regional

Accountancy Development Description of the project: The Objective of this project is to consolidate the achievements of the previous capacity building project, to build upon the foundation laid during the past few years, and to further strengthen institutional capacity of ICAN through twinning arrangement with a strong member body of the International Federation of Accountants (IFAC). This project aims at enabling ICAN to achieve mutual recognition arrangement with the twinning partner and some other strong professional accountancy bodies in OECD countries. Also, ICAN aims to reach and maintain internationally recognized level of quality assurance, and to be able to better lead national accountancy profession and development, as well as to adapt to new changes. 15. Rwanda-- Competitiveness and Enterprise Development Additional Financing

(component: accounting and auditing) Description of the project: A component of the Competitiveness and Enterprise Development Project supports institutional capacity building of the newly established Institute of Certified Public Accountants of Rwanda, through twinning arrangement with a strong member body of IFAC.

Annex: 3 Countries with Completed ROSC Accounting and Auditing in Africa Region FY 02 (July 1, 2001 – June 30, 2002)

1. Kenya FY 03 (July 1, 2002 – June 30, 2003)

2. Mauritius 3. South Africa

FY 04 (July 1, 2003 – June 30, 2004)

4. Ghana 5. Nigeria

FY 05 (July 1, 2004 – June 30, 2005)

6. Senegal 7. Tanzania 8. Uganda

FY 06 (July 1, 2005 – June 30, 2006)

9. Botswana 10. Cameroon 11. Sierra Leone

FY 07 (July 1, 2006 – June 30, 2007)

12. Malawi 13. Zambia 14. Burundi

FY 08 (July 1, 2007 – June 30, 2008)

15. Ethiopia 16. Madagascar 17. Mozambique 18. Rwanda

FY 09 (July 1, 2008 – June 30, 2009)

19. Benin 20. Cote d’Ivoice 21. Mali 22. Niger 23. DRC

FY 10 (July 1, 2009 – June 30, 2010)

24. Burkina Faso 25. Congo 26. The Gambia 27. Kenya (second review) 28. Lesotho 29. Sudan 30. Togo

FY 11 (July 1, 2010 – June 30, 2011)

31. Central African Republic 32. Gabon 33. Liberia 34. Mauritius (second review) 35. Nigeria (second review) 36. Zimbabwe

Annex 4: SMO Compliance status in Africa

Compliance Responses and Part 3 Action Plans

Country Institute Status: Member Body / Associate

Part 3 Action Plan

1 CAMEROON The Institute of Chartered Accountants of Cameroon Member Body Jul. 2011

2 COTE D'IVOIRE Ordre des Experts Comptables et Comptables Agréés de Côte d'Ivoire Member Body Dec. 2010

3 EGYPT The Egyptian Society of Accountants & Auditors Member Body 4 GHANA The Institute of Chartered Accountants (Ghana) Member Body Feb. 2011 5 KENYA Institute of Certified Public Accountants of Kenya Member Body Jul. 2011 6 LIBERIA The Liberian Institute of Certified Public Accountants Member Body Sep. 2011

7 MADAGASCAR Ordre des Experts Comptables et Financiers de Madagascar Member Body May‐11

8 MALAWI The Society of Accountants in Malawi Member Body Jul. 2011 9 MAURITIUS Mauritius Institute of Professional Accountants Associate Aug. 2011

10 MOROCCO Ordre des Experts Comptables du Royaume du Maroc (Morocco) (Certified Public Accountants Association) Member Body

Apr. 2011 11 NAMIBIA Institute of Chartered Accountants of Namibia Member Body 12 NIGERIA The Institute of Chartered Accountants of Nigeria Member Body Feb. 2011

13 SENEGAL Ordre National des Experts Comptables et Comptables Agréés du Sénégal Associate May‐11

14 SIERRA LEONE The Institute of Chartered Accountants of Sierra Leone, (ICASL) Member Body May‐11

15 SOUTH AFRICA The South African Institute of Chartered Accountants Member Body Mar. 2011

16 SOUTH AFRICA The South African Institute of Professional Accountants Member Body May‐11

17 SWAZILAND Swaziland Institute of Accountants Member Body Aug. 2011

18 TANZANIA, UNITED REPUBLIC OF

National Board of Accountants and Auditors (NBAA) Member Body May‐11

19 TUNISIA Ordre des Experts Comptables de Tunisie Member Body Sep. 2009 20 UGANDA Institute of Certified Public Accountants of Uganda Member Body Sep. 2011 21 ZAMBIA Zambia Institute of Chartered Accountants Member Body Jul. 2011 22 ZIMBABWE The Institute of Chartered Accountants of Zimbabwe Member Body Jul. 2010

41st Conference Papers[1]

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