The Institute of Certified Public Accountants of Kenya (ICPAK) has come up with a new accounting basis dubbed ‘accrual accounting’ that will strengthen Public Finance Management (PFM) and International Public Sector Accounting Systems (IPSAS) for economic growth.
This follows the PS National Treasury Dr. Julius Muia’s commitment to move government financial reporting to IPSAS accrual accounting away from cash basis accounting.
Speaking during the western region accountants’ training, ICPAK Council Member, Hesbon Omollo, said that there was need to equip the members with the skills required in the new type of accounting and sensitise them on changes in the accountancy act.
“Accrual accounting seeks to address the challenges of pending bills in the public sector that keep being recycled hence leading to business challenges due to not getting payments on time,” said Omollo.
Omollo said that accrual accounting provides accurate income and reporting at the time the revenue is earned and records liabilities incurred regardless of when cash is received or paid.
He pointed out that IPSAS Cash only recognizes revenues and expenses at the time received or paid out.
The council member revealed that they would be issuing four categories of licenses unlike in the past where they issued a single license.
“We will be issuing composite license, audit and assurance license, management and consulting license and tax consultancy license,” he added.
Omollo also said that the quality of graduates they produced were up to task, very good in the market and excelled beyond borders.
“We have consistent professional training every year which sharpens the accountants in the aspect of service delivery,” he said.
The chair of ICPAK western region Antony Opondo said that they were training the members on the effectiveness of financial training standards.
He complained that implementing effective financial reporting in various organizations has been a challenge.
“We have had areas of underperformance and dissatisfaction in financial reporting. This training provides a platform to learn and be able to present accurate, timely, true and fair reports,” Opondo said.
He said that they also take part in various Corporate Social Responsibility (CSR) activities.
“In Western Region, we supported Vihiga queens in Vihiga, St Catherine special school in Busia and the precious Virginia home in Kakamega and many others,” he said.
The chair said that they have more than 3,000 certified members in western region and called upon those unlicensed to reach out to the institute and get licensed.
The training was attended by National Treasury members, Office of the Auditor General, Office of the Controller of Budget, several universities, and secondary schools, the members from western region, various county assemblies, and Post Bank.
By Margaret Andeso
