IslamicFinance.de

According to a recent focus group held in Dubai by ACCA (the Association of Chartered Certified Accountants), a common definition of what sustainability is and what it means in the UAE would help to encourage more companies to invest in creating their own corporate sustainability reports on a regular basis. The UAE focus group brought together 11 high level delegates representing a range of organisations. Whilst the level of sustainability reporting is currently low in the UAE, it was felt that sustainability reporting should play an important role in the development of the UAE in the years to come. Represantatives of the ACCA hope that these discussions will make a difference in helping to change perspectives and show just how important corporate sustainability reporting is to helping the UAE’s growing economy maintain its momentum.

At a networking event organised by ACCA (Association of Chartered Certified Accountants) in Manama, His Excellency Dr Abdul-Hussain Bin Ali Mirza, Minister of State for Electricity and Water Affairs, said that the financial scandals of the past have led to a general loss of trust and confidence in auditors. Finance professionals working in Bahrain and the Middle East have been urged to ensure working to the highest ethical standards in order to avoid such scandals. Ethics and integrity are at the heart of ACCA's Competency Framework. The vast majority of Chief Financial Officers said it was important to have a good understanding of professionalism and ethics besides finance expertise and capabilities.

A recent report by the Association of Chartered Certified Accountants (ACCA) and KPMG states makes a call for co-operation between standard setters and Islamic banks. Thus, harmonization of financial reporting shall be enabled. ACCA supports the opinion that due to the rapid global growth in Islamic finance reports must be harmonized and consistent. Guidance and standards should be developed and the investor community should be educated on the most significant matters.

KPMG and ACCA report underlines the necessity of the harmonization of the financial reporting and tighter cooperation of Islamic banks with the International Accounting Standards Board in order to develop guidance, standards and educate the investor community on key issues.