Capital Market Authority and the Institute of Certified Public Accountants of Rwanda (ICPAR) have signed a MoU aimed at improving tax compliance through information exchange.
The deal will also promote compliance with International Financial Reporting Standards (IFRS) laying a strong foundation for companies that intend to access long term capital to familiarise with issuance and disclosure standards.
“It’s a milestone in our services because for a company to list, one of the requirements is to have standard financial statements,” said Robert Mathu, CMA Chief Executive Officer.
The deal opens a new chapter in the partnership between the two institutions in the areas of financial reporting, corporate governance and investor education.
Mathu said they intend to focus on Small and Medium Enterprises and this is expected to influence business through the adoption of accounting standards.
“We are targeting SMEs which is among the drivers of the economy, create awareness about the accounting professional,” he said.
The pact will also see the parties assist SMEs adopt international accounting standards, and business awareness on capital market opportunities for business funding expansion and growth.
Chairman of ICPAR, Peter Rutaremara, said the two entities share a lot in common adding the cooperation comes at the right time when government is transforming the financial sector.
“We used to have a gap of people to audit financial statements of different institutions, but we are building a strong team and this year we approved 34 licenses,” Rutaremara said.
He noted that to date, Rwanda has 203 professional accountants and they intend to launch professional accounting curriculum in secondary schools.
Olivier Mugwaneza, the Chairman of National Accounting Students Association believes the association is benefiting from ICPAR, where professional accounting training courses are provided for free.