IFRS adoption in Cambodia 8 th Floor, VTRUST Tower, St. 196, Sangkat - - PowerPoint PPT Presentation

វិទ្រាស្ទ ា នគណននយ៓យករជំនិញនិងសវនករកម៓ពុជិ

KAMPUCHEA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND AUDITORS

IFRS adoption in Cambodia

8th Floor, VTRUST Tower, St. 196, Sangkat Veal Vong, Khan 7 Makara, Phnom Penh

• Tel. 855 23 23 17 07, email: kicpaa@kicpaa.org; www.kicpaa.org

Agenda

INSTITUTIONAL DEVELOPMENT

01

KEY MILESTONES

03

REGULATORY BODIES

02

CHALLENGES

04

OPPORTUNITY

06

COOPERATION

05

INSTITUTIONAL DEVELOPMENT

Research Committee for International Accounting Standards Law on Accounts, Their Audits, and Accounting Profession

• NAC
• KICPAA

Law on Accounting and Auditing Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA)

1999 2002 2016 2019 2003 2017

National Accounting Council

REGULATORY BODIES OF ACCOUNTING AND AUDITING

NATIONAL ACCOUNTING COUNCIL KAMPUCHEA INSTITUTE OF CERTIFIED ACCOUNTANTS AND AUDITORS (KICPAA)

4

KEY MILESTONES

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1 Jan 2010 1 Jan 2012 30 Jun 2012 26 Feb 2016 2019

CIFRS for SME become effective

1st delay adoption for financial institutions and insurance to 2016

first set of CIFRS being prepared CIFRS become effective

2nd delay adoption for financial institutions and general insurance to 2019

28 Aug 2009

MEF-NAC announced to adopt IFRS and IFRS for SME

CHALLENGES

ENTITY

▪ Big gaps between local GAAP (CAS) and IFRS. ▪ Extensive resources are need to implement IFRS, including: ➢ People: ✓ limited IFRS knowledge amongst local stakeholders including accounting and finance team. ✓ Most entities have to engage external expert to help them with their IFRS conversion. ✓ Lack of local expert in the country. ➢ Process: Entities have to modify their processes in order align with IFRS requirement ➢ System: investment in system to cope with changes in the process and the data requirement for IFRS number and reporting. ➢ Data extraction ➢ Function ➢ Modeling ➢ Reporting

CHALLENGES (con’t)

REGULATORS ▪Similar to entity: people, process and system. ▪Unfamiliar with the new accounting standards. ▪Need to balance between accounting standards and prudential requirements. ▪Impacts of new accounting standards require the update of regulations.

CHALLENGES (con’t)

AUDITORS ▪Increase cost of each IFRS audit assignments. ▪Additional involvements and works due to client’s lack of IFRS understanding. ▪Lack of resources locally in particular IFRS 9 adoption. ▪Additional training requirements.

COOPERATION

▪ Various IFRS training are conducted either through KICPAA CPD and NAC ▪ Members of KICPAAA mainly big 4 are working directly with NAC and NBC on the training and sharing experience in the workshop ▪ IFRS working committee as established by standard setter, NAC, with KICPAA’s member are also part of them ▪ Member firms are also assist regulator in developing and reviewing the new chart of account for Financial Institutions ▪ Member firms are actively in joining public consultation relating to IFRS.

OPPORTUNITY ▪Data as of August 2019, Cambodia have 46 commercial banks, n 15 specialized banks, 7 MDIs, 75 MFIs and 15 Leasing companies that require to adopt IFRS and IFRS for SMEs. ▪We have less than 100 qualified accountants with ACCA or CPA ▪IFRS 9 and IFRS 16 are generally sourced from other country. Mostly from Singapore and Malaysia.

THANK YOU