Effective financial reporting is the key to attracting billions in foreign investments

Anthony Harbinson, President of the Association of Chartered Certified Accountants (ACCA)

According , Anthony Harbinson, President of the Association of Chartered Certified Accountants (ACCA) and chairman of the UK Public Sector, financial professionals in the public sector have a critical role to play in creating an enabling environment to attract foreign investments,

“Qualified accountants doing their jobs effectively make it possible for governments to implement accurate financial reporting based on accounting standards. This in turn enables potential investors and business partners to make fully informed decisions about the stability and potential of economies in which they have an interest in.” Harbinson said. He was speaking at a Public Sector luncheon hosted by The Association of Charted Certified Accountants (ACCA).

Harbinson also commended countries in the developing and emerging markets that are making significant improvements in aspects of public financial reporting. He singled out Kenya’s Ministry of Finance that continues to challenge accountancy bodies to come up with public sector qualifications to produce qualified professionals to work in central and county governments for developing and maintaining sound fiscal and monetary policies.

Patrick Kabuya, a senior financial management specialist at the World Bank said, “The need for strong financial reporting systems in the public sector goes to the heart of what makes governments effective. If budgeting systems are bad and internal controls ineffective, corruption and low levels of service delivery are the logical results. The link to poverty and social unrest is pretty obvious.”

ACCA has partnered with the Ministry of Finance to help organizations in the public sector deliver value by enabling them to develop the finance leaders through access to global networks in the profession as well as learning from research and insights on financial excellence. Information exchange, standard setting, accounting and auditing legislation will also be a key focus in the partnership for successful management of public finances.