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CMA ups stakes in financial reporting

NAIROBI, Kenya, Oct 12 – The Capital Markets Authority (CMA) will soon review the financial reporting standards in the country to ensure companies give better accounts of their finances.

CMA Financial Manager James Katule said the Authority together with the Institute of Certified Public Accountants of Kenya (ICPAK) is constantly reviewing the accounting template to incorporate emerging issues and improve accuracy and reliability.

Kenya uses the International Financial Reporting Standards (IFRS) template that contains the details of financial reports.

"CMA continuously reviews what is going to both the markets and public to make sure it is in agreement with IFRS or it is in the best interest of the investing public," Mr Katule said.

Nairobi Stock Exchange Chief Executive Officer Peter Mwangi said while most companies meet the disclosure requirements, extra revelation of financial positions boosts shareholders confidence.

"We have our continuing listing obligations, there is what we require companies to disclose on an ongoing basis and so long as they meet those requirements, we are fine with them. However more disclosure is better disclosure," Mr Mwangi said.

They were speaking during a cheque-handover ceremony for the 2010 Financial Reporting (FiRe) Award scheduled for October 13.

The FiRe award is an initiative between ICPAK, CMA and the NSE. The 2010 FiRe Award has had a record participation level of 90 organisations.

For the first time in the history of the Fire Award, there was participation from Tanzania and Uganda.

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"This year we are pleased to announce that we have received entries from the region – that is listed companies from Uganda and Tanzania – making the award a regional initiative. We also have a special category for SACCOs and SMEs as we seek to broaden the reach of the FiRe Award initiative," Mr Mwangi said.

He stated that in future, the FiRe Award partners would like to see local authorities participating in the FiRe Award initiative, as it was a way to benchmark themselves against global best practice as outlined by the International Public Sector Accounting Standards (IPSAS).

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