From Left: Geoffrey Odundo, the chairman of the FiRe Award and the CEO of NSE with Fredrick Riaga, CEO of Public Sector Accounting Standards Board
The public and private sectors in the country have been urged by promoters of the Financial Reporting (FiRe) Award to embrace disclosure of non-financial information as it plays a key role in business sustainability.
The disclosure of non-financial information is essential for building trust amongst the public by responding to their expectations and needs and by communicating with external stakeholders, including investors, on the need for sound decision making. The coveted FiRe Award is organized by five promoters namely Institute of Certified Public Accountants of Kenya (ICPAK), the Public Sector Accounting Standards Board (PSASB), Nairobi Securities Exchange (NSE), Capital Markets Authority (CMA) and the Retirement Benefits Authority (RBA). This year’s FiRe Award theme is “utilizing technology and innovation to enhance transparency of sustainability, governance and financial information.” The theme resonates with the critical role that technology plays in ensuring transparency of non-financial information disclosures, which give a wholesome view of organizational performance and its relevance in decision-making.
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Speaking during the launch of the 22nd Edition of the FiRe Award, the Chairman of the FiRe Award Executive Committee, who is also the NSE CEO, Geoffrey Odundo, said that FiRe Award promotes financial reporting excellence, fosters sound corporate governance practices, and enhances corporate investment and environmental reporting in public and private sectors.
The CEO of Public Sector Accounting Standards Board (PSASB), Fredrick Riaga, said that as the demand for non-financial information disclosure increases, data collection and metrics development become a challenge. To surmount this, public sector entities should leverage on technology to enhance transparency and sustainability in financial reporting. “Even as PSASB and the National Treasury are making final touches on modalities of transitioning the country from cash to accrual accounting, public sector entities should strike a balance in reporting financial and non-financial information,” Riaga said.
ICPAK Chief Executive Officer, CPA Dr. Grace Kamau, added that the FiRe Award has recognized and awarded the best reporting entities in East Africa. The Award aims to promote integrated reporting by enhancing accountability, transparency, and integrity in compliance with appropriate financial reporting framework and other disclosures on governance, social and environmental reporting by private, public and other entities domiciled in East Africa.
“The disclosure of non-financial reporting will address the growing expectation from stakeholders on transparency and accountability. The changing market dynamics calls for disclosure on long term value creation and future trends. The disclosure of non-financial information will restore trust in business, reinforce the stability and predictability of business performance,” RBA Chief Executive, Charles Machira observed.
The CMA Chief Executive Officer, Wyckliffe Shamiah, noted that ‘’the adoption of a wholistic approach to financial reporting to include disclosure of non-financial information is critical due to the growing concerns around governance practices, business sustainability and the contribution of corporate activity to climate change.”
Shamiah also welcomed the publication of the final standards for Sustainability-Related Financial Information (IFRS S1) and Climate-Related (IFRS S2) Disclosures by the International Sustainability.
