Charles Lutimba, the director of Standards at the Institute of Certified Public Accountants of Uganda. PHOTO/RACHEAL NABISUBI
KAMPALA. Top executives should prioritise the implementation of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards in Uganda.
The Institute of Certified Public Accountants of Uganda (ICPAU) Council approved the adoption of the IFRS Sustainability Disclosure Standards for use in Uganda on August 7, 2024, setting the stage for uniform sustainability and climate-related reporting across Uganda and globally.
The policy rationale for adopting the IFRS Sustainability Disclosure Standards in Uganda, as envisioned by the Council is to enhance reliable, comparable, and cost-effective information on sustainability-related risks and opportunities faced by organisations.
Section 16(5) of the Tax Procedures Code Act, requires taxpayers with an annual turnover of Shs500 million or more to furnish them with their return of income audited financial statements prepared by an accountant registered by ICPAU.
The director of Standards at the ICPAU Charles Lutimba, says that to meet these standards, members of the International Federation of Accountants must continuously evaluate and update their curricula to reflect current trends and necessities.
He notes that acting in the public interest emphasizes the importance of possessing the right skills promptly, particularly as technological advancements and economic shifts occur.
“Local industry developments, such as the emergence of cooperative societies and related legislative changes, necessitate curriculum adaptations. For instance, the Cooperatives Act and social audits highlight the need for specific knowledge in cooperative auditing and accounting, prompting revisions to educational programmes,” Lutimba said.
Furthermore, with a growing focus on areas such as Islamic finance, data analytics, and innovative auditing techniques, the profession recognises that traditional courses may not suffice.
He highlights that master classes have emerged as a valuable solution, offering specialised training and support to accountants, helping them stay proficient in tackling modern challenges.
“The responsibility for adopting these evolving reporting standards rests with the membership of accounting bodies; encouraging organisations to hire qualified personnel,” Lutimba said, adding: “Without properly trained individuals, the application of these standards risks becoming compromised,” he explains.
Furthermore, there have also been shifts towards sustainability. Additionally, several regulatory changes have emerged, introducing strict and specific requirements for accounting and auditing practices.
Financial reporting changes
Financial reporting is experiencing changes in audit transparency, with new guidelines that enhance clarity. For instance, when an audit report is issued, it now includes details such as the engagement partner’s name and the firm that conducted the audit. There have also been shifts towards sustainability, meaning that they are moving from traditional financial reporting to sustainability reporting.
