Regional: Enhancing Financial Disclosure Standards in Transitional Economies

Sovereign Project | 36247-022

Summary

Impact and Outcome, Methodology and Key Activities -

The RETA will impact positively on good governance in the corporate and financial sectors at country and regional levels. It will enhance the regulator's capacity in accounting and auditing standards' setting and quality control. Upon completion, the RETA's outcome will be improved quality of accounting standards in Kazakhstan, the Kyrgyz Republic, Mongolia and Uzbekistan. The RETA will develop country-specific action plans to improve financial diclosures. Specifically, the TA will undertake the following: (i) guidelines on interpretation and implementation of International Standards of Auditing (ISA); (ii) building local ISA compliant audit capacity; (iii) training regulators from the four transitional economies; and (iv) seminar for interface of country participants to share knowledge and experience in International Financial Reporting Standards (IFRS) and ISA implementation.

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Project Name Enhancing Financial Disclosure Standards in Transitional Economies
Project Number 36247-022
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6249-REG: Enhancing Financial Disclosure Standards in Transitional Economies
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Finance - Finance sector development

Gender Equity and Mainstreaming No gender elements
Description

Impact and Outcome, Methodology and Key Activities -

The RETA will impact positively on good governance in the corporate and financial sectors at country and regional levels. It will enhance the regulator's capacity in accounting and auditing standards' setting and quality control. Upon completion, the RETA's outcome will be improved quality of accounting standards in Kazakhstan, the Kyrgyz Republic, Mongolia and Uzbekistan. The RETA will develop country-specific action plans to improve financial diclosures. Specifically, the TA will undertake the following: (i) guidelines on interpretation and implementation of International Standards of Auditing (ISA); (ii) building local ISA compliant audit capacity; (iii) training regulators from the four transitional economies; and (iv) seminar for interface of country participants to share knowledge and experience in International Financial Reporting Standards (IFRS) and ISA implementation.

Project Rationale and Linkage to Country/Regional Strategy The RETA will concentrate on facilitating the implementation of IFRS and particularly ISA to joint stock companies in the four TEs. In doing so, it will complement and continue the efforts of (i) ADB s earlier RETAs,(ii) its country specific financial sector related loans and TAs to Mongolia and the Kyrgyz Republic and (iii)the United States Agency for International Development (USAID)'s Central Asia Accounting Reform Program (CAARP)and the Enterprise Development Program (EDP) which sought to create a regional accounting infrastructure by supporting education and setting examination standards for a critical mass of IFRS knowledgeable accountants. . The RETA will facilitate the application by the USAID-trained accountants of IFRS and the enforcement of ISA by regulators, thereby complementing CAARP s and EDP s efforts. The outcome will be facilitated by: (i) providing methodologies for addressing legal and regulatory impediments to the application of ISA, (ii) providing training to regulators of the necessity of updated IFRS and ISA, (iii) providing methodologies for reconciliation between income and asset values computed according to IFRS standards and that of the local tax authorities, (iv) providing specific guidelines for the interpretation and implementation of ISA, (v) recommending the criteria for entry and continued membership in the profession, (vi) translating auditing textbooks, ISA and other updated relevant material into Russian (without duplicating what has already been translated by USAID under its EDP), (vii) establishing selection criteria for domestic audit firms audit of public listed companies, and (viii) after completion of the country specific domestic training programs, conduct a regional seminar that would provide an interface for the regulators from the four TEs to share knowledge in their application of IFRS and ISA to be strengthened through training and learning from each others experience.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location The four transitional economies (TEs) identified are: Kyrgyz Republic, Mongolia, Kazakhstan and Uzbekistan
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services A team of one international consultant and four domestic consultants will be recruited from an international firm to provide a total of 21 person-months' services between April and October 2006. The international consultant will be the team leader and will assume overall responsibility for the team's output. He must be a Chartered Accountant/Certified Public Accountant and is a member of an International Federation of Accountants (IFAC) member institute. The four domestic consultants must be professional accountants and will be selected by ADB on the recommendation of the team leader in consultation with the Ministries of Finance in Kazakhstan, Mongolia, Uzbekistan and the State Commission on Financial Reporting and Auditing (SCFRA) in the Kyrgyz Republic. All consultants will be recruited by ADB according to ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB.
Procurement None
Responsible ADB Officer R. Narasimham
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 10 Mar 2002
Fact Finding 20 May 2005 to 27 May 2005
MRM -
Approval 08 Aug 2005
Last Review Mission -
PDS Creation Date 02 Aug 2007
Last PDS Update 15 Oct 2008

TA 6249-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Aug 2005 - 08 Aug 2005 31 Oct 2006 31 Dec 2008 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 08 Aug 2005 401,871.04

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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