Accounting for Growth in Latin America and the Caribbean : Improving Corporate Financial Reporting to Support Regional Economic Development

by Fortin, Henri; Barros, Ana Cristina; Cutler, Kit

• ISBN13: 9780821381083
• ISBN10: 0821381083
• Format: Paperback
• Copyright: 2009-11-17
• Publisher: World Bank

Summary

The importance of moving toward high-quality global accounting and auditing standards has never been clearer. In the midst of the current global financial and economic crisis, the leaders of the Group of 20Emphasized that sound accounting and auditing standards are a critical piece of the international financial architecture. Transparent and reliable corporate financial reporting underpins much of the Latin America and Caribbean region's development agenda, from private sector-led growth to enhanced financial stability; it facilitates access to finance for small and medium enterprises, and furthers economic integration.

Table of Contents

Foreword	p. xi
Preface	p. xiii
Acknowledgments	p. xv
Abbreviations	p. xvii
Overview	p. xxi
Introduction and Background	p. 1
Importance of Accounting and Auditing for LAC's Economic Development	p. 2
Accounting and Auditing in the LAC Regional Economic Context	p. 6
International Momentum for Reform	p. 9
Reforming A&A in LAC: Three Success Stories	p. 11
Drivers of Reform in LAC Accounting and Auditing	p. 14
About This Book	p. 18
Notes	p. 21
National Corporate Financial Reporting Frameworks	p. 23
Completeness	p. 24
Coherence	p. 30
Adaptability	p. 33
Differentiation	p. 33
Conclusion	p. 36
Notes	p. 37
Preserving the Good Name of the Accounting Profession	p. 39
Structure of the A&A Profession	p. 40
Role of A&A Professional Bodies	p. 41
Entry Requirements: Limits of a System Based on University Accreditation	p. 48
Requirements to Maintain a Professional License	p. 49
Regulation and Oversight of the Statutory Audit Function	p. 52
Role of International Organizations and Regional Cooperation	p. 56
Conclusion	p. 58
Notes	p. 58
The Role of Education Systems	p. 61
Recent Trends in Higher Education	p. 62
Course Content and Quality of Accounting Curricula	p. 65
Faculty and Students	p. 70
Conclusion	p. 73
Notes	p. 76
Chapter 5	p. 77
IFRS in LAC: Overcoming the Adopt versus Adapt Dilemma	p. 78
Key Challenges in IFRS Adoption	p. 78
Establishing a Robust Standard-Setting Framework	p. 82
National GAAP: An Uncertain Future	p. 87
IFRS for SMEs	p. 88
IFRS in the Financial Sector	p. 88
Adoption of International Standards on Auditing in LAC	p. 90
Conclusion	p. 91
Notes	p. 92
Ensuring Compliance with Accounting and Auditing Standards	p. 95
Few Incentives to Produce Reliable Financial Information	p. 96
Enforcement of Financial Reporting Requirements	p. 98
Enforcement of Auditing and Professional Standards	p. 103
Disciplinary Regimes	p. 104
Conclusion	p. 107
Notes	p. 108
A Roadmap for Reform	p. 109
Setting Adequate Requirements	p. 110
Developing Capacity in Accounting and Auditing	p. 114
Enforcement	p. 118
The Role of the World Bank and Other Development Partners	p. 123
Notes	p. 127
Appendixes
About the ROSC Accounting and Auditing Program	p. 129
Coverage of ROSC A&A Program in Latin America and the Caribbean	p. 133
IFRS Adoption in Latin America and the Caribbean	p. 135
Country Action Plans: Developing a Strategic Vision for Reform and an Agenda for Action	p. 137
References and Other Resources	p. 143
Glossary	p. 153
Index	p. 159
Boxes
ROSC A&A Follow-Up Activities	p. 19
Public Interest Entities [PIEs]	p. 25
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