2015年-世界发展银行全球_Papua_New_Guinea_Report_on_the_Observance_of_Standards_and_Codes___Accounting_and_Auditing_41页_1mb

Papua New Guinea ROSC Accounting and Auditing Summary

Core Content

This report, prepared by the World Bank, evaluates the accounting and auditing environment in Papua New Guinea (PNG) and proposes policy recommendations to strengthen the institutional framework that supports corporate financial reporting and auditing practices. The review is part of the World Bank and IMF's joint initiative to assess the observance of standards and codes (ROSC) in various sectors, including accounting and auditing. The findings and recommendations aim to improve the quality, compliance, and enforcement of financial reporting standards, which are critical for enhancing the business environment and governance in both the public and private sectors.

Main Purpose

The primary objective of the report is to provide policy recommendations that will:

• Strengthen the institutional framework for accounting and auditing in PNG.
• Enhance the quality of financial reporting for corporations, including State-Owned Enterprises (SOEs).
• Support the development of a robust and transparent financial environment that contributes to the country's economic growth and accountability.

Key Challenges Identified

1. Dualistic Framework for Financial Reporting and Audit

• Two parallel systems exist for accounting, reporting, and audit: one for multinational and large local companies (aligned with international standards), and one for small and medium enterprises (SMEs) and SOEs, which is mostly theoretical and poorly enforced.
• This dual system leads to opaque financial reporting, undermining the business environment.
• A unified system is needed to improve the quality of financial information for the private sector, without creating a burdensome regulatory framework.

2. Lack of a Comprehensive Statutory Framework

• While laws appear to be in place, the necessary implementing measures are missing.
• The complexity of managing parallel legal requirements across different segments of the corporate sector hampers the enforcement of accounting and auditing standards.

3. Operational and Effective Institutions

• Institutions such as the Accounting Standards Board (ASB), Accountants Registration Board (ARB), and others have legal authority but lack adequate human and financial resources.
• This limits their ability to enforce standards and monitor compliance effectively.

4. Weak Quality Assurance and Public Oversight

• Auditors are the only group reviewing financial statements, with little oversight from regulators.
• This creates risks of non-compliance and misreporting, especially in resource-rich companies.
• A quality assurance function is needed, possibly outsourced to international bodies, to ensure compliance with international standards.

5. Capacity Building for CPAPNG

• Certified Practising Accountants Papua New Guinea (CPAPNG) needs to be strengthened to fulfill its obligations under IFAC membership.
• This includes developing technical capacity, education, and training for professionals, as well as ensuring compliance with IFAC standards.

Key Recommendations

Short-term Recommendations

• Adopt IFRS for SMEs: Accelerate the adoption of IFRS for SMEs and non-public interest enterprises to reduce the burden on small businesses while improving transparency.
• Reconstitute the ASB: The ASB should be promptly reconvened and strengthened with a capable technical secretariat to support policy reforms.
• Clarify Reporting Requirements: Introduce a clear definition of "Public Interest Entity" (PIE) to ensure that large enterprises are subject to audit and that SMEs and micro-enterprises are grouped for consistent regulatory application.

Medium-term Recommendations

• Establish a Single Regulator: Develop a single regulatory body to oversee and enforce accounting and auditing standards, similar to the Financial Reporting Council (FRC) in Australia.
• Improve Financial Sector Inclusion: Expand access to financial services for SMEs and rural communities, as financial inclusion remains low despite growth in the sector.
• Enhance Institutional Capacity: Strengthen the capacity of institutions such as the ASB, ARB, and CPAPNG through collaboration and resource allocation.

Country Context

• PNG is a young, ethnically and linguistically diverse country with a population of around 7 million.
• It has a GNI per capita of US$2,010 (2013), and its Human Development Index (HDI) is 0.491, placing it at 157 out of 187 countries.
• The economy is dualistic, with a strong extractive industry (oil, minerals, LNG) and a weak formal non-mineral sector.

Economic Context

• PNG's economy is dominated by a labor-intensive agricultural sector and a capital-intensive extractive sector.
• The PNG-LNG project, which began operations in 2014, is expected to significantly boost GDP and national income.
• The country is rich in natural resources but struggles to translate these into improved livelihoods and economic development due to institutional and structural constraints.

Financial Sector Overview

• The financial sector is relatively well-regulated and robust compared to similar countries.
• Commercial banks hold over two-thirds of financial sector assets, with the Bank of South Pacific (BSP) being the largest.
• Authorized Superannuation Funds (ASFs) are the second-largest segment, holding over 80% of non-bank financial assets.
• The stock market is small and lacks liquidity, with only 21 stocks listed on the Port Moresby Stock Exchange (POMSoX).
• Insurance sector is underdeveloped, with limited market share and coverage, particularly in rural areas.

State-Owned Enterprises (SOEs)

• Most SOEs are corporatized, with the exception of Bemobile Limited.
• SOEs are managed by the Independent Public Business Corporation (IPBC) and contribute to essential services such as power, water, and telecommunications.
• Despite government investments, their contribution to GDP remains low at 1.9% in 2012.

Conclusion

The report highlights the need for a unified, clear, and enforceable accounting and auditing framework in PNG. Strengthening institutions, improving regulatory clarity, and enhancing public oversight are critical steps toward achieving better financial reporting and governance. These reforms are essential to support the country's economic development, especially as it capitalizes on resource revenues to improve living standards and promote sustainable growth.