Papua New Guinea Report on the Observance of Standards and Codes
The main purpose of the Report on the Observance of Standards and Codes, Accounting and Auditing (ROSC A&A) review exercise, conducted at the request of the Government of Papua New Guinea, is to propose policy recommendations that will strengthen the institutional framework that underpins accounting and auditing practices in the country. Implementation of the policy recommendations will enhance the quality of financial reporting for corporations a key pillar that directly contributes to enhancing the business environment and the advancement of governance and financial accountability in both private and public sector entities. The ROSC A&A review for Papua New Guinea focuses on the strengths and weaknesses of the accounting and auditing environment that influence the quality of corporate financial reporting, and involves both a review of mandatory requirements and actual practices. The international standards that have been used as reference points for the preparation of this report are International Financial Reporting Standards (IFRS), clarified International Standards on Auditing (ISA), and international good practice in the field of accounting and auditing regulation. It is critical at this stage of development that PNG manage its resources well. The PNGLNG project shipped its first cargo in June 2014 and it is expected the LNG project to expand GDP by as much as one-quarter in 2014 and 2015, and national income by about 8 per cent. This requires significantly stepping up the quality, compliance, and enforcement of benchmark financial reporting and auditing practices. This is a key development challenge for PNG to channel this windfall revenue into investments that positively impact peoples lives.
Summary: | The main purpose of the Report on the
Observance of Standards and Codes, Accounting and Auditing
(ROSC A&A) review exercise, conducted at the request of
the Government of Papua New Guinea, is to propose policy
recommendations that will strengthen the institutional
framework that underpins accounting and auditing practices
in the country. Implementation of the policy recommendations
will enhance the quality of financial reporting for
corporations a key pillar that directly contributes to
enhancing the business environment and the advancement of
governance and financial accountability in both private and
public sector entities. The ROSC A&A review for Papua
New Guinea focuses on the strengths and weaknesses of the
accounting and auditing environment that influence the
quality of corporate financial reporting, and involves both
a review of mandatory requirements and actual practices. The
international standards that have been used as reference
points for the preparation of this report are International
Financial Reporting Standards (IFRS), clarified
International Standards on Auditing (ISA), and international
good practice in the field of accounting and auditing
regulation. It is critical at this stage of development that
PNG manage its resources well. The PNGLNG project shipped
its first cargo in June 2014 and it is expected the LNG
project to expand GDP by as much as one-quarter in 2014 and
2015, and national income by about 8 per cent. This requires
significantly stepping up the quality, compliance, and
enforcement of benchmark financial reporting and auditing
practices. This is a key development challenge for PNG to
channel this windfall revenue into investments that
positively impact peoples lives. |
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