2017年-世界发展银行全球_Myanmar_Report_on_Observance_of_Standards_and_Codes___Accounting_and_Auditing_Module_60页_996kb

Summary of the Report on Observance of Standards and Codes (ROSC) - Accounting and Auditing Module, Myanmar (June 2017)

Core Content

The Report on Observance of Standards and Codes (ROSC) is a joint initiative by the World Bank and the International Monetary Fund (IMF) aimed at strengthening financial systems in member countries through improved compliance with internationally recognized standards and codes. This report specifically focuses on the accounting and auditing standards and practices in Myanmar, particularly for public interest entities (PIEs), and the institutional framework that supports corporate financial reporting.

Main Points

• ROSC Purpose: To assess the quality of corporate financial reporting and provide recommendations for aligning with international standards.
• Economic Context: Myanmar has undergone significant political and economic reforms since 2011, leading to increased openness and growth. The economy is projected to grow at an average of 7.1% per year in the medium term.
• Key Objectives:
  • Articulate a sound financial reporting institutional framework.
  • Assess current accounting and auditing practices against international benchmarks.
  • Provide practical recommendations for long-term alignment with global standards.

Key Information

Statutory Framework

• The statutory framework for financial reporting in Myanmar is under development and requires finalization.
• Key legislative changes include the Myanmar Companies Law (expected to be enacted in 2017), the merger of the Foreign Investment Law and Myanmar Citizen Investment Law, and an updated State-Owned Economic Enterprises Law.
• A differential reporting framework is needed to distinguish between PIEs and non-PIEs, ensuring consistent requirements for financial reporting, audit, and publication.

The Profession

• The Myanmar Accountancy Council (MAC) is the regulatory body for the accounting profession.
• The Myanmar Institute of Certified Public Accountants (MICPA) is the Professional Accountancy Organization (PAO) in Myanmar.
• There is a need to clarify the roles and responsibilities of MAC and MICPA, with MICPA aiming to become an independent PAO.
• The current Professional Qualification Program (PQP) does not meet international standards, and reforms are necessary to align the CPA designation with global benchmarks.

Professional Education and Training

• The revised PQP and associated learning materials should be fully implemented.
• Continuing Professional Development (CPD) programs need strengthening.
• University-level accounting and finance programs should be upgraded to support a competency-based curriculum.
• A survey on competency requirements for professional accountants is recommended to guide curriculum development.

Accounting Standards

• There is a standards gap due to the lack of updates to Myanmar Financial Reporting Standards (MFRS) and MFRS for SMEs since the 2009 version.
• Myanmar is in discussions with the IFRS Foundation to adopt the latest IFRS standards.
• A transition plan for IFRS is essential, especially for key sectors, to ensure full compliance in the medium to long term.

Auditing Standards

• Myanmar is likely to adopt the latest version of the International Standards on Auditing (ISA) in 2017.
• The International Federation of Accountants (IFAC) Code of Ethics has been updated since 2009.
• A timeframe for the adoption of ISA, ISQC 1, and the IFAC Code of Ethics is needed.
• Support programs for auditors, especially those of PIEs, are recommended to ensure quality and independence.

Monitoring, Compliance and Enforcement

• A robust system for monitoring, compliance, and enforcement is lacking, contributing to the standards gap.
• MAC and MICPA should develop and implement appropriate monitoring and compliance arrangements in collaboration with sector regulators.
• In the short term, the focus should be on PIE financial statements and audit quality assurance.
• In the medium term, non-PIE financial statements and audit quality should be addressed.

Areas for Consideration

• The report outlines several areas for consideration, including the development of a Code of Corporate Governance, addressing low audit fees, and improving the legal framework for foreign accountants.
• These areas are critical for ensuring sustainable development and alignment with international standards.
• Implementation will require ongoing technical and financial support for capacity building.

Policy Recommendations

Conclusion

This ROSC report highlights the need for comprehensive reforms in Myanmar's accounting and auditing systems to align with international standards. The reforms will support the development of a modern, competitive, and transparent financial sector, essential for attracting foreign investment and fostering economic growth. The implementation of these reforms will require collaboration between the government, professional bodies, and international partners, as well as sustained investment in capacity building and education.