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									                                      Secretariat:                        ECSAFA EXECUTIVE COMMITTEE
                                      Street address:
                                      Block B, CPA Centre                 1.     Mr. Morgan Tembo - President (Malawi)
                                      Ruaraka, Thika Road
                                      Nairobi Kenya.                      2.     Mr. Koos du Toit - Deputy President (Namibia)

                                      Postal Address:                     3.     Ms. Jackie Tong - Member (RSA)
                                      P. O. Box 4259 – 00100 Nairobi.
                                                                          4.     Mr. Joseph Wangai - Member (Kenya)
                                      Tel: 254 20 2021184
                                      Fax: 254 20 2021184                 5.     Mr. Saleem Kharwa - Member (RSA)
                                      Email: ecsafa@africaonline.co.ke
                                      Website: www.ecsafa.org             Chief Executive Officer/ Secretary - Mr. Vickson Ncube (Zambia)




                      ECSAFA                                             NEWS
                             JANUARY - MARCH 2009

Welcome to this issue of ECSAFA News for the period January to March 2009.

                              Experience in ECSAFA - By Ignatius Sehoole
                              During my tenure as Executive President, the South African
                              Institute of Chartered Accountants (SAICA) has consistently
                              supported ECSAFA to achieve its mission: to co-ordinate the
                              development of the accountancy profession and to promote
                              internationally recognised standards of professional competence
                              and conduct within the region.

                                I believe that the successful achievement of the mission will
                                ensure that we have many professional accountants in Africa,
                                along with sophisticated financial reporting: a necessary
                                contributor to enhancing national and international investor
confidence that will be a stimulant to economic growth. I stand for the same mission as ECSAFA
and look forward to the day when we shall have many professional accountants in Africa, well
supported by all professional accounting bodies. I am pleased that SAICA has managed to
contribute in many areas, among them:

1. Helped organise ECSAFA standard-setters workshops, where members from the region share
   their standard-setting experiences. The workshops also provided a forum to update the
   technical participants from the region on current technical developments. Indeed, they
   provided an ideal opportunity to share information.

2. SAICA has sent technical experts to several countries, where they have trained and presented
   papers that helped explain some of the more complex and technical accounting-related
   topics. We have also shared training material to alleviate the training vacuum.

3. We regularly hosted accountants from other countries at our SAICA offices in Johannesburg,
   where we shared our approach to and modus operandi of running our South African chartered



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    accountancy institute. Hopefully, these visits enhanced those countries’ structures and
    operation processes.

We have assisted and funded the printing and distributing to ECSAFA members of CDs and
DVDs containing international auditing and accounting standards.

SAICA has served as ECSAFA technical manager – a role that involved developing newsletters,
answering technical questions from all ECSAFA countries and preparing comment letters, on
behalf of ECSAFA, on documents issued internationally.

Besides offering guidance on the above, I have created new relationships with ECSAFA
representatives during the many meetings and functions that we have held in different countries
in the ECSAFA region. There is now a very cordial relationship between SAICA and ECSAFA
members and in my view a good relationship is one of the key ingredients to beneficial
exchanges. I and SAICA will forever cherish this type of relationship.

ECSAFA, with guidance from the Council, should continue to focus on its mission, thereby
ensuring that it continues to grow and is effective. I am sure SAICA, with the guidance of my
successor, will maintain and, possibly, increase its support to ECSAFA.

I sincerely thank ECSAFA for the opportunity to contribute to its activities. As a member of
SAICA, I will continue to interact with ECSAFA in various ways and will keep our relationship
alive. A special thank you to SAICA members and staff for working alongside me to support
ECSAFA!

MEMBERS NEWS
IFAC Member Body Compliance Programme Update

More ECSAFA members have had their Action Plans on IFAC Member Body Compliance
Programme published on the IFAC Website. This brings the total number of those published to
seven (7). The full list is as follows:

      Botswana Institute of Accountants (BIA)
      Institute of Certified Public Accountants of Kenya (ICPAK)
      Lesotho Institute of Accountants (LIA)
      Society of Accountants in Malawi (SOCAM)
      National Board of Accountants and Auditors (NBAA), Tanzania
      Zambia Institute of Chartered Accountants (ZICA)


Institute of Commercial and Financial Accountants, Namibia, (CFA,
Namibia)
The CFA, Namibia held their Annual General Meeting on 14 March 2009 at the Protea Hotel in
Walvis Bay. During the Annual General Meeting, Mr. Richard Ludwig was elected the
Institute’s Chairman and Mr. Wolfgang Keding his Vice. The AGM was preceded by a Practice



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Forum on 13/14 March 2009, which focused on working papers. Other topics discussed included
money laundering and investment opportunities.

Institute of Certified Public Accountants of Rwanda (ICPAR) Launched
7 February 2009 saw the birth of a new Institute in the ECSAFA region. The Institute of
Certified Public Accountants of Rwanda was formerly launched at a colourful ceremony by the
Minister for Finance. Mr. Peter Rutaremara was elected President while Mr. Francis Mugisha
was elected Vice President. Both ECSAFA and IFAC were represented at the launch.

South Africa Institute of Chartered Accountants (SAICA)
The long standing Executive President of SAICA, Mr. Ignatius Sehoole has left the Institute. He
is being replaced by Mt. Mashobane Matlwa. Mr. Sehoole has been associated with ECSAFA
for the past decade. He has served as an Executive Committee member and a technical advisor
to the ECSAFA President. He has served as an IFAC Board member and he is currently the
Chair of the Developing Nations Committee of IFAC. ECSAFA will miss his great
contributions. ECSAFA also welcomes Mr. Matlwa into the ECSAFA family.

East and Southern Africa Association of Accountant-Generals (ESAAG)
ESAAG held its Annual Conference in Kigali, Rwanda from 23 – 27 February 2009. The
Conference looked at various challenges facing Governments in Public Accounting and Finance
Management. Various tools of integrated financial management information systems were
looked at. The possibility of establishing a public finance and accounting education and training
framework was looked at. The World Bank made useful presentations during the Conference.
ESAAG is an Affiliate member of ECSAFA.

Institute of Chartered Accountants in England and Wales (ICAEW)

The ICAEW Representation to the G20 London summit 2009
The current crisis has sparked widespread scepticism about the ability of businesses operating in
open markets to sustain economic growth and the wider interests of society. Citizens, within and
beyond the Group of Twenty (G20) countries, need to have faith in the opportunities that
businesses and open markets provide to create long-term employment and prosperity, to lift large
numbers out of poverty and disease and to tackle the pressing issue of climate change.

As a public interest body, the Institute of Chartered Accountants in England and Wales (the
ICAEW) is committed to working with governments and regulators, as well as business,
investors and consumers, to restore economic confidence and encourage sustainable growth. To
this end the ICAEW invest heavily in thought leadership and this representation draws on work
carried out in our programmes on Information for Better Markets, Dialogue in Corporate
Governance, Inspiring Confidence in Financial Services and Sustainable Business.

Find out more about the ICAEW representation to the G20 London summit 2009 and download a
PDF of the representation at http://www.icaew.com/G20




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Chartered Institute of Management Accountants (CIMA)
CIMA Celebrates its 90th Birthday!
CIMA is celebrating its history and success as the world’s largest leading management
accounting institute, acknowledged this year by employers as the global quality standard in
management accounting.

Today CIMA can boast of 171,000 members and students in 165 countries, having recently
celebrated its 75,000th member. From its beginnings in 1919 as the Institute of Cost and Works
Accountants, its ambitious vision has remained the cornerstone of success as the employers’
choice when recruiting financially trained business leaders.

CIMA was formed under the presidency of businessman and entrepreneur Lord Leverhulme, as a
reaction to the needs experienced by industry and the military during the Great War. Accountants
who could do more than simply audit accounts, but rather contribute to financial and
management planning were in demand. The strength of the cost accountant would prove to be in
assessing trends and forecasting requirements; in effect it was the dawn of forward looking
financial managers.

The world is unrecognisable from CIMA’s beginnings in 1919; globalisation and technology
have completely changed the way it does business. Those original skills of collecting, managing,
interpreting and applying financial information to business decisions are the same ones that put
today’s Chartered Management Accountant in a pivotal position to add value and make a
difference. Anticipating the future and making it happen, rather than reporting the past against an
outdated budget, leaves its members strongly placed with the skills to lead businesses out of the
downturn in many parts of the world today.

The current global financial crisis demonstrates the inadequate quality of financial decision
making that is behind some of the worst excesses leading to the current downturn today.
However, it is those same processes, when aligned and integrated into a cautious and prudent
approach, that continue to protect many of the world’s largest organisations in which CIMA
members operate.

There are countless examples of businesses that have consistently positioned themselves to
maximise their commercial opportunities and growth without over extending themselves and
getting into areas of risk that have proved unmanageable; getting financial analysis right is
essential for getting the subsequent business decision right.

Strategic decisions made without disciplined financial analysis do not maintain sustainable
growth, and just looking at pure numbers isn’t enough either. Using strategic business
management tools such as the CIMA Strategic Scorecard™, rolling quarterly forecasts and
customer profitability analysis, management accountants will continue to play a pivotal role at
the heart of business strategy.

As CIMA continues to increase its membership and have influence around the world, 2009 will
be an opportunity to celebrate the achievements of its founders who had the vision, leadership
and innovation to create the success we enjoy today.


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History Timeline

1919   -          The Institute of Cost and Works Accountants is founded.
1920   -          The first examination is held in December 1920.
1939   -          The Institute's membership reaches 1,233 with 2,391 students.
1969   -          In its Golden Jubilee year the institute has 10,510 members and 25,000 registered
                  students.
1974 -            The ICWA becomes the Institute of Cost and Management Accountants.
1975 -            The institute is granted a Royal Charter.
1986 -            The institute changes its name to the Chartered Institute of Management
                  Accountants.
1995 -            CIMA’s members are given the right to use the title Chartered Management
                  Accountant.
2002 -            The institute relocates to its current global headquarters in central London.
2008 -            CIMA celebrates its 75,000th member.
2009 -            CIMA is 90 years old.


ECSAFA MEETINGS

DATE                          TYPE OF MEETING                     HOST

3 – 4 April 2009              EXCOM/Council/AGM                   LIA in Lesotho

6 – 9 April 2009              ECSAFA Standard                     South Africa
                              Setters/National Standard Setters


18 September 2009             Standard Setters Workshop           SAICA/SAIPA, South
                                                                  Africa
18 September 2009             EXCOM meeting
                                                                  SAICA/SAIPA, South
19 September 2009             Council meeting                     Africa

21 – 23 September 2009        EXCOM/Council/ECSAFA 8th            SAICA/SAIPA, South
                              Congress and 20th Anniversary       Africa
                              Celebrations
                                                                  SAICA/SAIPA, South
                                                                  Africa

2010 – 1st Half               EXCOM/Council/AGM                   ZICA, Zambia

21 – 25 October 2010          EXCOM/Council                       ICPAU, Uganda

8 – 11 November 2010          World Congress of Accountants       Kuala Lumpur, Malaysia




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2011 – 1st Half            EXCOM/Council/AGM                   BIA, Botswana
         nd
2011 – 2 Half              EXCOM/Council                       ICPAK, Kenya




ECSAFA 8th Congress and 20th Anniversary Celebrations
The Website for the Congress is www.ecsafa.co.za



IFAC MATTERS
NEW IFAC GUIDANCE FOCUSES ON THE DEVELOPMENT AND TRAINING OF
ACCOUNTING TECHNICIANS


(New York/March 6, 2009) – An important means to build capacity in the accountancy
profession in developing countries is through the development of accounting technicians. As part
of its strategy to develop the accountancy profession worldwide, the International Federation of
Accountants' (IFAC) Developing Nations Committee has released a new good practice guide
entitled, The Education, Training and Development of Accounting Technicians. The new guide is
designed to raise awareness of the role and value of accounting technicians in both the public and
private sectors.

The guide promotes the importance of having accounting technician-level programs in both
developed and developing economies so that individuals have access to education and training.
The guide also encourages professional accountancy organizations to support the development of
accounting technicians by offering technician programs that lead to certification and membership
in the organization.

“In developing and emerging economies, individuals often do not have the resources to qualify
as professional accountants, but there is a strong demand by governments and organizations for
skilled individuals to contribute to the financial reporting and decision-making process. The
development of accounting technicians is important to fulfilling this gap and setting a pathway
for qualified accounting technicians to develop further as professional accountants,” states
Ignatius Sehoole, chairman of the Developing Nations Committee.

The guide can be downloaded free-of-charge from the IFAC online bookstore
(www.ifac.org/store). For more information on IFAC's work to support developing nations, visit
www.ifac.org/developingnations




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TECHNICAL MATTERS
IAASB MEETING 16th TO 18 TH MARCH 2009 REPORT

SUMMARY
This was an interesting meeting coming after the completion of the Clarity Project with focus on
understanding the global environment and responding to emerging issues, and also approving the
project proposals for new projects. Key issues discussed included:
 Pro-Forma Financial Information Included in Prospectuses: The issues paper prepared
   by the task force was discussed at length. It emerged that there were no significant
   differences in the review process globally, and the task force was given the go ahead to
   prepare the first draft of the standard to be discussed at the September 2009 meeting. The
   only area where there was no consensus was on the extent of work that was to be carried out
   on the underlying data that is subject to pro-forma (I am a member on the task force).
 Project Proposal for the Revision of ISRE 2400 (Engagements to Review Financial
   Statements) and ISRS 4410 (Engagements to Compile Financial Statements): The
   project proposal was approved with the proposed standards slated for approval in December
   2011. The task force was asked to consider if the review engagements framework could be
   used as an alternative to the audit framework especially in entities which did not require an
   audit. The task force was also asked to consider other services provided by the reviewer and
   their impact on Independence (I have been appointed to the task force to represent the SMP
   views).
 Impact Assessment: This project focuses on how IAASB and other IFAC standard setting
   bodies will assess the impact of new standards. Such assessment could involve a full analysis
   of cost vis-à-vis the benefits etc. The task force to present a paper at the next meeting.
 IESBA Presentation: The Ethics Board presented the status on the work it was doing on the
   Code of Ethics. The new Code is expected to be approved in April 2009. One of the key
   changes is consideration on limited exceptions that may be given when the Code is breached.
   The other key change is the use of the word “shall” instead of “should” to make the
   provisions in the Code mandatory. This is in line with the changes done to ISA’s as part of
   Clarity.
 ISA 610 - Using the Work of Internal Audit: The project proposal was approved to take
   into consideration the changes in the function of internal audit based on comments received
   from stakeholders’ during Clarity including the Institute of Internal Auditors (IIA). Some of
   the changes in the new standards may include guidance on what is internal audit and does it
   encompass functions such as controls testing, compliance etc; can the external auditor use an
   internal auditor to perform substantive tests; and should external auditors be compelled to use
   the work of internal audit (as suggested by IIA).
 XBRL: A presentation was made by the AICPA on the XBRL as an international business
   reporting format and the role of the auditor in the future especially as the current XBRL
   filing is not subject to audit. A project proposal was approved with the task force mandated to
   prepare a consultation paper for the September 2009 meeting. In the US, the Securities and
   Exchange Commission requires the top 500 companies to file data using the XBRL format in
   a phased manner from the 2 nd quarter of 2009. Companies reporting under IFRS to file this
   from 15th June 2011.
 Translations and Compliance: A presentation was made by IFAC on the translation project
   in other languages for all Clarified ISA’s. The focus is currently on EU (due to the pending


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    decision by EU to codify the ISA’s in its legislation in the later part of 2009) but will then
    move to Japan, China and South America. It should be noted that the UK has approved the
    implementation of ISA but Germany has objected to the mass adoption of ISA’s. Germany
    wants these to only be applicable to audits of public companies, with other companies be
    subject to a lower level of audit.
   ISAE 3000 (Assurance Engagements Other than Audits or Review of Historical
    Financial Information): The project proposal to incorporate enhanced requirements and to
    adopt the Clarity drafting format was approved. Final standard expected in September 2011.
   Communication: IFAC made a presentation on their communication strategy including the
    Clarity project. It was agreed that for some selected ISA’s, IFAC will develop a 10 to 15
    minute short video to give an overview of the ISA and key changes. This will be distributed
    with a PowerPoint presentation of the ISA together with speaker notes. A number of changes
    were proposed to the initial format including a feature for multiple language capability. The
    ISA’s for which the modules are proposed include Related Parties (ISA 550), Overall
    Objectives of the Auditor in the Audit of Financial Statements (ISA 200), Accounting
    Estimates (ISA 540), Using Work of Another Auditor (ISA 620), Communication with those
    Charged with Governance (ISA 260), Communicating Deficiencies in Internal Control (ISA
    265), Group Audits (ISA 600), Materiality and Misstatements (ISA 320 and 450). 3 to 5
    topics may be added based on the budget availability.
   Rapid Response: A paper was presented on how IAASB could respond to emerging issues
    through the issue of both non-mandatory guidance and mandatory material. Based on the
    comments received, it was resolved that the team submits a new discussion paper for the June
    2009 meeting.
   International Association of Insurance Supervisors: IAIS want to issue a paper on the
    relationship between the external auditors and actuaries. A task force was appointed to look
    into the paper and provide their comments (I have been included in the task force).
   IAASB Strategy and Current Environment: The IAASB response to emerging issues was
    discussed in light of the current strategy. Based on the discussions, two task forces were
    appointed to provide guidance on External Confirmations and Fair Value.

Prepared by: Ashif Kassam
Ashif Kassam is an ICPAK member who serves on the IAASB Board

TECHNICAL ASSISTANCE
ECSAFA provides a technical query service to member bodies by assisting members with
technical queries. We encourage you to channel technical queries to the ECSAFA office,
ecsafa@africaonline.co.ke.


Nairobi, March 2009




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