The Pan African Federation of Accountants (PAFA) organised the Technical Excellence and Value Management (TEVM) conference from 25-28 November 2019 in Maputo, Mozambique.
Here are updates from the conference:
Integrated thinking and reporting to contribute in achieving Africa agenda 2063
- Corporate governance and value creation
- Getting started – How to
- Integrated thinking and Reporting in Education
- Assuring the credibility of IRs
- Role of national Integrated Reporting Committees
- There is growing desire to shift from backward focusing reports to forward looking reports
- There is a shift in corporate objective from being the desire to act in the shareholders’ interest to acting in the interest of multiple stakeholders
- Corporate can no longer risk thinking in silos hence the need to focus on the six capitals in an integrated manner.
- The responsibility of Boards is key in shaping integrated reporting since this commences from an integrated thinking approach
- Boards must guide corporate organizations on what amounts to value as this should be aligned to the ultimate purpose for the existence of the organization i.e the organisaiton strategy must be consistent with value creation goals.
- Corporate that will withstand the emerging disruptions are those that will have the ability to use their resources in perpetuity for the benefit of society
- IT and IR key for SMEs as these are identified as key suppliers of resources to big organizations. As such they may need to pace with the growing importance of IT and IR as big organsiations may choose to deal with only SMEs that have prudent approach to business operations.
- Starters guide was updated to include King IV provisions
- Engage multiple players in fostering IT & IR including capital markets, corporate Governance bodies among others.
- There is need to provide assurance on an IR since important decisions may be made based on unverifiable information
- The Exposure Draft on external extended reporting will be issued early 2020
- Likely challenges for practitioners who intend to provide assurance on EER include; scope, competence, criteria to follow in reviewing the information among others.
- Shared experience on how to start a country IR council/committee.
- Key points in setting up such committees included:
- Involvement of a number of stakeholders like capital markets, central banks, Insurance regulators, public sector, key private sector players among others
- Consider holding meetings on a rotational of venue basis
- The committee should not be delinked form the national PAO.
- Consider funding options for the activities of the committee.
This session was organised by the African Integrated Reporting Council Conference with support from PAFA and the World Bank
Public Value Management Conference
- Public Value Management Training in Africa
- Role of the Accountancy Profession in Enhancing Public Value Management to Achieve Inclusive Development in Africa
- Inspiring implementation – Promoting IPSAS Adoption and Implementation in Africa
- Official Launch of IPSAS Implementation roadmap for Africa
- Public sector training should also consider persons in the public sector who are not accountants but have served in the sector for some time.
- That traditional accounting qualification do not meet the needs of public sector
- PAOs should begin a discussion on how to incorporate people within public sector who may have experience but without the requisite qualifications to become members of the respective PAOs.
- PAOs should consider a mechanism that brings people within the public sector into membership because if they are kept out of control of the PAOs they do much damage which exposes the profession.
- API is currently developing resources for public sector personnel who do not have a qualification in accounting.
- For the Accountancy Profession to Enhance Public Value Management to Achieve Inclusive Development in Africa PAOs need to:
- Be involved in development of National Development Plans;
- Improve quality of financial information among SMEs to access loans
- Support adoption and application of IPSAS
- Develop more qualified technicians
- Competency framework
- Assimilating the 4th Industrial Revolution into the accountancy education and practice for Africa We Want.
- E-Learning: B Com International
- Accounting Technician Qualification for Francophone Africa
- Discussion on key element to be considered on the PAFA competency framework
- In developing a competency framework there is need to consider the current drivers for change which include:
- Acting in Public interest
- Sustainable value creation and
- Responsible leadership
- Competency frameworks should not only concentrate on technical knowledge but also including changing trends
- The profession is in the lime light over state capture and state managed corruption like the case of South Africa. There is therefore a need to include ethics in all aspects of the accountants’ training hence acting in public interest
- Sustainable value creation calls for organizations not to report how much money they have made but how they have made this money i.e responsible capitalism
- Shared experiences in developing competency framework – South Africa adopted the Canadian model with jurisdictional adjustments
- There is a need to divest from a clustered learning and training of accounting in such fields like taxation, accounting e.t.c but move to a more integrated approach to learning.
- There is need to put more emphasis on delivery of information than the content itself since content is everywhere.
- Ethics and ethical dilemmas be incorporate in all aspects of the training
- The concern of public interest should not only relate to training of accountants but should be extended to the way corporate organizations behave.
- Among the challenges of a competency based framework include the following:
- Traditional background of trainers and examiners
- Tertiary institutions are still knowledge based
- Knowledge on emerging trends had to incorporate from time to time