Adhere to international accounting standards – Prof Ncube urges

PUBLIC sector accounts departments must embrace international accounting standards to foster accountability, transparency and investor confidence, the Minister of Finance and Investment Promotion, Professor Mthuli Ncube has said.

Addressing delegates on Friday during a Public Sector Annual Convention hosted by the Institute of Chartered Accountants of Zimbabwe (ICAZ) in Bulawayo, Professor Ncube said transparency was critical in achieving sustainable economic growth.

Running under the theme: “Sustainable Economic Growth through Accountable Resource Management,” the convention was attended by ICAZ executives, representatives from the Pan African

Federation of Accountants (PAFA) and senior officials from the Auditor General’s Office.

“International Financial Reporting Standards (IFRS) are not just a set of accounting principles, they are the bedrock of transparent financial reporting. They provide a common language of business that ensures consistency and comparability in financial statements. It’s imperative to recognise that adherence to IFRS standards does not only enhance investor confidence and foster trust but also plays a crucial role in attracting foreign investments,” said Professor Ncube.

IFRS are set of accounting standards issued by the International Accounting Standard Board (IASB) that are used by companies and organisations to prepare financial statement

Professor Ncube also said adherence to the International Public Sector Accounting Standards (IPSAS) was paramount to the public sector as these standards enhance transparency and accountability.

“They guide us in accurately reflecting the financial health of governments and public entities thereby enabling better decision-making and accountability,” he said.

Prof Ncube said by embracing IPSAS standards, Government departments unlock a wealth of benefits including increased fiscal transparency, improved governance and enhanced access to international capital markets.

“It’s not just about numbers; it’s about fostering trust among citizens, investors and international partners,” said Prof Ncube.

He said the new International Sustainability Standards Board (ISSB) has witnessed a global shift towards sustainability and environmental responsibility.

Minister Ncube said the emergence of the ISSB signifies collective commitment to addressing environmental, social and governance (ESG) concerns.

The ISSB standards are designed to provide reliable information to investors. The standards help companies communicate how they identify and manage the sustainability-related risks and opportunities they face over the short, medium and longer term. They go hand-in-hand with financial statements.

“I want to reaffirm our Government’s unwavering commitment to achieving sustainable economic growth through accountable resource management. As we embark on this transformative journey, let us remain steadfast in our resolve, united in our purpose, and relentless in our pursuit of a brighter future for all our people,”said Prof Ncube.

In her speech during the same event, the Pan African Federation of Accountants (PAFA) president Ms Keto Kayemba said public entities are stewards of public resources hence the need to be accountable and transparent.

She said the entities should be drivers of economic growth through professional accountants who should work towards accountability, transparency and maintenance of good corporate governance. —chronicle