Report on the Observance of Standards & Codes (ROSC) Accounting & Auditing (A&A) MODULE B: INSTITUTIONAL FRAMEWORK FOR CORPORATE FINANCIAL REPORTING B.8 ACCOUNTING STANDARD-SETTING TABLE OF CONTENTS INTRODUCTION TO THE QUESTIONNAIRE 3 A. INSTITUTIONAL ENVIRONMENT FOR STANDARD-SETTING 4 B. ADOPTION OF IFRS 6 C. STANDARD-SETTING PROCESS FOR NATIONAL GAAP 8 D. OTHER ASPECTS OF THE STANDARD-SETTING PROCESS 10 Additional information 11 © 2017 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org 2 ROSC Accounting & Auditing Module B: Institutional Framework – B.8 ACCOUNTING STANDARD-SETTING INTRODUCTION TO THE QUESTIONNAIRE The purpose of this questionnaire is to gain an understanding of the governance arrangements and procedures for setting accounting/financial reporting standards in a jurisdiction, covering (a) the adoption of International Financial Reporting Standards (IFRS)1 where applicable, and (b) national generally accepted accounting principles (GAAP). The questions are based on examples of good practice followed by internationally-recognized standard- setting bodies. The questionnaire is structured as follows: A. Institutional environment for standard-setting B. Adoption of IFRS C. Standard-setting process for national auditing standards D. Other aspects of the standard-setting process How should the questionnaire be completed? • This questionnaire should be completed by the body responsible for setting accounting/financial reporting standards in the jurisdiction. • Where applicable, state the legal instrument or code that establishes a requirement and the date of enactment. 1 IFRS here collectively refers to the accounting standards and corresponding interpretations (IFRICs) issued by the International Accounting Standards Board and its predecessor. Refer to http://www.ifrs.org/ 3 ROSC Accounting & Auditing Module B: Institutional Framework – B.8 ACCOUNTING STANDARD-SETTING Please provide the following information when completing this questionnaire. Country Organization Date of preparation Telephone number Individual(s) responsible for preparation Address Job Title(s) Email A. INSTITUTIONAL ENVIRONMENT FOR STANDARD-SETTING 1. Which body is responsible for setting accounting and financial reporting standards in the jurisdiction? Is the authority of this body established by law or other regulation? 2. Describe the membership/composition of the standard-setting body. 3. Describe the process for selecting/appointing members (including ex-officio members) to the standard-setting body and state any required qualifications for members. 4 ROSC Accounting & Auditing Module B: Institutional Framework – B.8 ACCOUNTING STANDARD-SETTING 4. Are representatives from the following institutions members of the standard-setting body? If so, please indicate the number of members. Number of members Central Bank (or banking supervisor) Securities market regulator Insurance supervisor Ministry of Finance (or if other government agency, please state which) 5. Describe the sources of funding for the standard-setting body and the amount of its annual budget (e.g., subsidy from the government, revenues from commercial activities, in-kind contributions etc.). 6. Describe the process for determining, implementing and reporting on the work program of the standard- setting body. 7. Is the standard-setting process subject to independent oversight? If so, please indicate which body is responsible and briefly describe the oversight activities performed. 8. Do the accounting and financial reporting standards issued or adopted by the national standard-setting body have legal standing in the jurisdiction (i.e., are companies required by law to comply with the standards)? 9. Are unique standards established for specialized industries or categories of companies (e.g., construction, insurance, and oil and gas)? If so, please briefly describe. 5 ROSC Accounting & Auditing Module B: Institutional Framework – B.8 ACCOUNTING STANDARD-SETTING B. ADOPTION OF IFRS 10. Have full and current International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) been adopted? If so, please indicate: a. Whether IFRS have been adopted in law, through a decision of the national standard-setting body, by a regulator or by other means. b. The year of IFRS currently in use. c. Whether IFRS is required for: i. individual (or “legal entity”) financial statements ii. consolidated financial statements iii. both d. The types of commercial enterprise (e.g., listed companies and banks) which are required to comply with IFRS. 11. If IFRS have been adopted, please indicate whether the original standards as issued by the IASB have been modified in any way for use in the jurisdiction (e.g., “carve-outs”, additional requirements, or options prohibited). 12. Where modifications to IFRS have been made, please indicate which standards have been modified and briefly describe the modification(s) and the rationale. 6 ROSC Accounting & Auditing Module B: Institutional Framework – B.8 ACCOUNTING STANDARD-SETTING 13. Where IFRS have been adopted but the standards in use are not those currently in issue by the IASB, please describe the process to adopt the current standards. 14. Where IFRS have been adopted in full (i.e., without modifications), please describe the process for approving (or “endorsing”) new standards issued by the IASB. 15. Has the IFRS for small and medium-sized enterprises (“IFRS for SMEs”) been adopted in the jurisdiction? If so, briefly describe the process for approving (or adopting or “endorsing”) the standards if different from that of IFRS. 7 ROSC Accounting & Auditing Module B: Institutional Framework – B.8 ACCOUNTING STANDARD-SETTING C. STANDARD-SETTING PROCESS FOR NATIONAL GAAP 16. Who are considered to be the principal users of financial statements prepared according to national accounting and financial reporting standards (“national GAAP”)? 17. How often are national accounting and financial reporting standards/GAAP updated? 18. Please indicate which of the following form part of the established process for issuing new standards for national GAAP and/or revisions to the standards, selecting all that apply: Conducting research and producing Issuing standard (or revised standard as discussion papers applicable) Developing and circulating draft standards Issuing interpretation guidance Public consultation period Issuing implementation guidelines Publication of responses Post-implementation reviews Other (please explain) 19. If discussion papers are produced as part of the development process for new/revised standards, describe the process. 20. If drafts for new/revised standards are circulated prior to issuance of standards, describe the process. 8 ROSC Accounting & Auditing Module B: Institutional Framework – B.8 ACCOUNTING STANDARD-SETTING 21. If there is public consultation prior to issuance of standards, please indicate the following: Comments a. The length of the consultation period (for both discussion papers and draft standards where different) b. Whether consultation is open to the general public c. If consultation is only with certain stakeholders, please specify which. d. Whether public consultation is a statutory requirement. e. If the standard-setting body is required to respond to the comments received in the consultation process. 22. If guidance to facilitate interpretation of the standard is produced, describe this process. 23. If guidelines on implementation of the standard are produced, describe this process. 24. If post-implementation reviews are performed following issuance of the standard, describe this process. 9 ROSC Accounting & Auditing Module B: Institutional Framework – B.8 ACCOUNTING STANDARD-SETTING D. OTHER ASPECTS OF THE STANDARD-SETTING PROCESS 25. Is English the business language in the jurisdiction? If not, and IFRS has been adopted, please indicate the following: Comments a. Which version of IFRS is being used, noting the year and date of translation. b. Name of the body which performs the translation and its sources of funding. c. Average time taken for the translated standards to be issued. d. Whether the official IFRS Interpretations (IFRICs) are translated. 26. Briefly describe the dissemination process for new and/or revised standards to the profession and to stakeholders such as academia, businesses and the wider public (e.g., publications, conferences, workshops etc.) 27. Does the national standard-setting body contribute to the international standard-setting process of the IASB? For example, by participating in working groups, responding to public consultations etc. Please briefly describe and provide examples of such letters recently submitted. 10 ROSC Accounting & Auditing Module B: Institutional Framework – B.8 ACCOUNTING STANDARD-SETTING Additional information Please indicate the corresponding section and question number if using this page to provide additional information. 11