Regional: Enhancing Financial Disclosure Standards in Armenia, Azerbaijan, and Georgia

Sovereign Project | 41648-012

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 Armenia, Azerbaijan, and Georgia. The RETA will develop country-specific action plans to improve financial disclosures. 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 3 countries; and (iv) seminar for interface of country participants to share knowledge and experience in International Financial Reporting Standards (IFRS) and ISA implementation.

Latest Project Documents


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Enhancing Financial Disclosure Standards in Armenia, Azerbaijan, and Georgia
Project Number 41648-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6505-REG: Enhancing Financial Disclosure Standards in Armenia, Azerbaijan, and Georgia
Investment Climate Facilitation Fund under RCIFPF US$ 600,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
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 Armenia, Azerbaijan, and Georgia. The RETA will develop country-specific action plans to improve financial disclosures. 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 3 countries; 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 Armenia,Azerbaijan and Georgia recognize the importance of good financial governance standards in accordance with international best practices for enhancing their investment enabling climates.Rational investment decisions need accurate and timely disclosures of inforamtion relating to institutions' financial condition. ADB and the three countries concurred that that enhancement of their financial reporting standards in line with International Financial Reporting Standards (IFRS) and auditing standards in accordance with International Standards of Auditing (ISA) are necessary for improved financial disclosure and governance standards. The TA will train the three countries'accountants,auditors and regulators in fostering knowledge in applying IFRS and ISA. Adopting an integrated approach,this TA will identify and address on a country-specific basis, the three countries' weaknesses in legal,regulatory and institutional frameworks in the adoption of IFRS and enforcement of ISA. The TA's inputs will develop country specific action plans for strengthening the thre countries' financial disclosure standards,allowing them to benefit from opportunities afforded by sharing of experiences.
Impact Improved governance in the corporate and financial sectors of Armenia, Azerbaijan, and Georgia.
Project Outcome
Description of Outcome Improved quality of accounting standards in line with International Financial Reporting Standards (IFRSs) and auditing standards in line with International Standards of Auditing (ISAs) in all three countries.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Manual on methodologies for reconciling income and asset values computed according to IFRSs and domestic tax codes

2. Guidelines for interpreting and implementing ISAs

3. Guidelines on criteria for entry into and continued membership in the accounting and auditing profession

4. Guidelines for domestic audit firms' audit of publicly listed companies and their quality and for quality control of audits

5. International Federation of Accountants (IFAC) ethics' material and corresponding ISA guidelines available in regional languages

6. Accountants, auditors, and regulators from the three countries trained in applying IFRSs and enforcing ISAs

7. Regional interface for addressing common generic constraints

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location The 3 countries identified are: Armenia, Azerbaijan, and Georgia.
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 The TA will require 24 person-months of consulting services between April and October 2009. The international consultant will be the team leader and accountant. The national consultants will be accountants, one from each country. The four consultants will be assisted by counterpart staff from the three countries' IAs. The IAs' counterpart staff will guide the consultants' research, facilitate access to relevant government and other agencies and officials, and provide necessary information. The three countries' IAs will provide the team leader and the national consultants with office space, furniture, and a telephone line during TA implementation. An international consulting firm will be selected using quality- and cost-based consultant selection and the biodata technical proposal method, in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Selecting a firm for this purpose will facilitate better coordination between the team leader and the three national consultants in the three countries covered. Consultants will procure equipment in accordance with ADB's Procurement Guidelines (2007, as amended from time to time).
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 BankR.Narasimhamrnarasimham@adb.orgCentral and West Asia Department.
Timetable
Concept Clearance 19 Jun 2008
Fact Finding 10 Mar 2008 to 24 Mar 2008
MRM -
Approval 10 Dec 2008
Last Review Mission -
PDS Creation Date 22 Dec 2008
Last PDS Update 07 Oct 2010

TA 6505-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2008 - 10 Dec 2008 31 Oct 2009 31 Oct 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 600,000.00 0.00 0.00 0.00 0.00 600,000.00 10 Dec 2008 510,760.64
Title Document Type Document Date
Enhancing Financial Disclosure Standards in Armenia Consultants' Reports Dec 2009
Enhancing Financial Disclosure Standards in Armenia Technical Assistance Reports Dec 2008

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.