PAFA - REGIONAL COOPERATION : WORKING TOGETHER TO FURTHER FINANCIAL REPORTINGPresented by Asmâa RESMOUKI

Date: 18 June, 2013

PRESENTATION PLAN

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1. What is PAFA ?

2. PAFA’s Vision and Mission

3. Adoption of International Standards : One of PAFA’s strategic themes

4. Main actions taken by PAFA

5. PAFA’s main challenges and opportunities

What is PAFA ?

Presentation to: MENA Exchange Date: June 18, 2013

• PAFA : Pan African Federation of Accountants

• Launched in May 2011 in Dakar-Senegal

• To accelerate the development of the accountancy profession in Africa and strengthen the voice of the accountancy profession within Africa and worldwide

• PAFA has been recognized as an IFAC Regional Body in November 2012

• It is currently made up of 39 professional accountancy organizations from 34 countriesPAFA intends to have presence in every country in the African continent

PAFA’s Vision

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Globally recognised as the influential voice of the accountancy profession from Africa

PAFA’s Mission

Presentation to: MENA EXCHANGE Date: 18 June, 2013

To work in the public interest by leading and developing the accountancy profession in Africa and delivering value to its members by :

•Supporting the formation and development of national PAOs•Advancing the implementation of international standards•Promoting a common education and training approach•Demonstrating the value of the accountancy profession•Engaging organisations on common development agendas•Facilitating cooperation among the PAOs•Influencing standard setters and other IFAC committees

Adoption of International Standards

Presentation to: MENA EXCHANGE Date: 18 June 2013

One of PAFA’s strategic themes is :

To enhance the reputation of the accountancy profession in Africa by facilitating the formal adoption and implementation of international standards and best practice, in both the private and public sector, within a strong regulatory and legislative framework.

Adoption of International Standards

Presentation to: MENA EXCHANGE Date: 18 June 2013

PAFA’s General Assembly of May 2012 resolved to adopt :

•IFRSs developed by the IASB and its successor organisations;•IFRS for SMEs developed by the IASB and its successor organisations;•ISAs developed by the IAASB and its successor organisations;•IPSASs developed by the IPSASB and its successor organisations;•IESs developed by the IAESB and its successor organisations;•Code of Ethics for Professional Accountants developed by the IESBA and its successor organisations

PAFA recognises that not all its members have the mandate to adopt standards in their countries. In such cases, the members must work with the appropriate authority to facilitating the adoption of international standards.

Main Actions taken by PAFA

Presentation to: MENA EXCHANGE Date: June 18, 2013

• PAFA has partnered with the International Forum of Accounting Standard Setters with a view to having an effective input into the IASB standard setting process

• PAFA has partnered with the Financial Reporting Standards Council (FRSC) of South Africa on the nomination of Ms. Kim Bromfield as a member of Accounting Standards Advisory Forum

• PAFA has launched a PAFA Standard Setters Forum to provide a platform on which members that have strong setting activities can share their experiences with those still in developmental stage

Main Actions taken by PAFA

Presentation to: MENA EXCHANGE Date: June 18, 2013

• PAFA has started engagement with the World bank and African Development Bank to create partnership to build capacity at country level covering the adoption of International Standards such as IFRS, IPSAS and ISAs. Capacity building will also include audit quality reviews

• PAFA is partnering with the World Bank to develop a Regional Knowledge Center on corporate financial reporting, as a means of helping PAOs and the accounting profession

Main Actions taken by PAFA

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•In the medium and long term, PAFA seeks to create close cooperation among countries neighboring each other to enter into mutual recognition agreements in areas of training, technical and resource sharing

PAFA’s Main Challenges

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• Diversity in culture and Multi-lingualism• Different stages of development of members• Quick and high expectations of delivery from members• Continued engagement and commitment from members• Implementation challenges of new regulatory models and

differences in regulatory approaches between regions• Staffing capacity• Financial sustainability• Prioritization of resources

PAFA’s Main Opportunities

Presentation to: MENA EXCHANGE Date: June 18, 2013

• Tangible support from its better resourced members beyond membership fees

• Support from development partners such as World Bank and African Development Bank

• Leverage the support of IFAC and its committees to further PAFA’s development agenda

• Facilitating the support capacity of stronger African PAOs to assist the development of smaller PAOs

• Opportunity to coordinate the provision of centralized services to smaller PAOs

• Advocate and employ technology solutions in a strategic way to address challenges