The promoters of the Financial Reporting (FiRe) Award namely: the Institute of Certified Public Accountants of Kenya (ICPAK), the Nairobi Securities Exchange (NSE), the Capital Markets Authority (CMA), Public Sector Accounting Standards Board (PSASB) and the Retirement Benefits Authority (RBA) have today launched the 20th edition of the Award officially inviting reporting entities to submit their financial reports for assessment for this year’s awards.
Private and public sector entities are invited to submit their entries between Wednesday, October 5, 2022 and Friday, October 21, 2022 for review by a panel of experts in advance of the award. The Award promotes financial reporting excellence, fosters sound corporate governance practices and enhances corporate investment and environmental reporting for financial transparency and accountability.
This year’s Award ceremony, themed Promoting Excellence in Financial Reporting through Integrating Financial and Non-Financial Information, is an appreciation of the critical importance non-financial information plays in providing a wholesome view of company’s performance and providing stakeholders with relevant information for decision-making.
Speaking during the launch of the Award, the NSE Chief Executive and Chairman of the FiRe Award Executive Committee Mr. Geoffrey Odundo noted, “The FiRe Award remains a critical barometer to measure financial reporting excellence among public and private sector organizations in Kenya”.
“The Award equally provide an opportunity to promote and enhance the adoption of International Financial Reporting Standards (IFRS) by entities in the country thus enhancing efficient communication of financial information both locally and internationally” he added.
“Currently, there is a global demand for sustainability reporting, which culminated in the formation of the International Sustainability Standards Board (ISSB). The public sector has not been left behind. The International Public Sector Accounting Standards Board (IPSASB) has recently issued a consultation paper on Advancing Sustainability Reporting in the Public Sector. In view of that, there are increasing demands in the country by the users of financial statements to link performance-related outputs and outcomes to financial information. Users want to understand the impact of the government’s decisions on the lives of current and future generations. Linkages between financial and non-financial information, including sustainability and performance reporting through integrated reporting, becomes a crucial step towards giving meaningful information to the users of the annual reports, and this is what we are promoting in this year’s FiRe Award,” PSASB CEO Mr Fredrick Riaga said.
The Capital Markets Authority Chief Executive Officer, Mr. Wyckliffe Shamiah, observed “Promoting excellence in financial reporting is fundamental in positioning Kenya as the preeminent financing and investment hub in the region. The adoption of integrated reporting helps investors derive optimum value as they get a broad perspective of listed companies including aspects of climate change and sustainability,which have become topical issues in financial reporting globally. The high reporting standards are therefore a key step in attracting investors in the capital markets as Kenya seeks to be positioned as an international financial centre’’.
ICPAK Chief Executive Officer, CPA Edwin Makori added that incorporating non-financial data provides a more holistic view of the organization, and factors that can impact business operations than financial data can deliver on its own. The users of financial reports are better placed to make economic decisions if they are provided with more comprehensive information. Accountants therefore as vanguards of promoting excellence in financial reporting have the responsibility to ensure that financial reports are prepared within the prescribed formats and standards.
“Retirement Benefits Authority joined the Award in 2020 as a sponsor and was recently admitted to promoter. This is to encourage Retirement Benefits Schemes to embrace best practice in reporting and demonstrate good governance. Participation of pension schemes in the Award is expected to help improve their financial reports and disclosures through formal feedback from the evaluation panel,” said RBA Ag. CEO Charles Machira.