The Tribune

By NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

THE BAHAMAS Institute of Chartered Accountants (BICA) is pushing for the Government to adopt accrual-based accounting across the entire public sector, arguing that the shift will provide a more accurate picture of the country's net worth, assets and accumulated liabilities.

Taneisha Dean-Hall, BICA’s president, yesterday told the Accountants Week conference that the Institute is advocating for the transition away from the existing modified cash-based accounting as part of efforts to improve public sector financial management, while also seeking to support government accountants through specialised professional certifications.

“We're looking to see if we can help them with certifications in public finance management, certifications in IPSAS (International Public Sector Accounting Standards), which is the accounting standard, and the accrual basis of accounting, and seeing how we can advocate for moving from a cash basis of accounting to an accrual basis of accounting,” she said.

Ms Hall said moving towards accrual accounting will allow the Government to better assess The Bahamas’ overall financial position, rather than focusing primarily on cash movements and liabilities that have accumulated.

“So that we can see the accurate picture of the net value and the worth of the country, more so than what are the liabilities that have been accumulated,” she said. Ms Hall added that the Institute's objective is to help ensure the Government has access to better financial information to support its decision-making.

“Ultimately, what we want is determining the net value and the net worth of the country. The better information, the more information, the better the information, the more informed decisions we can make,” said Ms Hall.

Changes to the Business Licence Act have also created additional work for accountants, with new financial reporting and verification requirements placing greater demands on businesses and the professionals responsible for preparing and reviewing their financial information.

Under the requirements, businesses with annual turnover of between $250,000 and $5m must submit an independent accountant’s report verifying their turnover, while those generating $5m or more must provide audited financial statements for the previous calendar year.

Ms Hall said the regulatory changes have resulted in additional audit-related work for accountants, making it important for professionals to remain informed about their obligations under the legislation.

“We did have the Business Licence Act take effect, and there's been a lot of regulatory changes that resulted in terms of audits and what have you,” she said.

The institute is currently holding its annual Accountants Week, which brings together professionals from across industries and sectors for learning and professional development as part of its efforts to raise awareness of the profession and encourage continued growth.

Ms Hall said a major focus is attracting the next generation of accountants, as the profession faces a shortage of qualified professionals both locally and internationally.

She said BICA is seeking to engage high school students and educate them about the range of opportunities available in accounting beyond the traditional perception of the profession as simply keeping books and records.

Beyond its efforts to strengthen the profession, BICA is also undertaking strategic planning aimed at making the Institute more financially sustainable and expanding its membership.

Ms Hall said the Institute has traditionally relied heavily on volunteers, and is examining what changes are needed to strengthen its operations for the future.

“The Institute is very volunteer-heavy and based, and it's been run like that across the Caribbean. We're not an outlier in that perspective, but we're looking to see how we can stand up the Institute to be self-funding and self-sufficient and self-sustaining,” she said.

BICA currently has around 570 members, although Ms Hall said the Institute believes there are many more accountants across the country who could potentially be brought into its membership.

“Right now we have about 570 members, but I know we have thousands of accountants out there, and we are trying to bridge that gap and make sure that we have a full complement of members to draw from,” she said.