The Auditor General (ag), Evelyn Kamagaju, has urged both public and private institutions to adopt international financial reporting standards (IFRS). Once IFRS is adopted, it is hoped will improve corporate governance, create credibility of financial reporting and improve trade trends in the country. “However small the business and economy might be, there is need to adopt these standards (IFRS) to fit in the global village,” Kamagaju said. Adding, “We are ready to set up a professional body to implement the standards. She was addressing a workshop of stakeholders in the accounting profession.
Ernest and Yong, an international auditing firm, facilitated the training at Kigali Serena Hotel. Accountants say IFRS is high quality financial reporting method that EAC and global institutions have adopted. This has supported investments, economic strategies and private sector growth. Ernest and Yong’s Chief Executive Officer Coutts Otolo said adopting and implementing IFRS would help Rwanda to catch up with international standards. He said this will increase investment flows and create competitiveness in exports. ‘It’s critical that Rwanda adopts these standards because being a head in ICT adoption requires international standards to increase investments in the sector,’ he said. Other East African Countries like Kenya adopted the standards in the last ten years, Tanzania in six years and Uganda in four years. Different papers are to be presented including basis of presentations of general purpose of financial statements, IFRS requirements for financial instruments, how to overcome the challenges to good financial reporting and understanding accounting policies. Ends