To ensure consistency, comparability and transparency in the reporting of financial information of state owned enterprises (SOEs), the Privatization and Corporatization Board (PCB) has decided that all SOEs will maintain financial policies and procedures that meet standardised criteria.
In a circular issued on Monday, the PCB said the board had conducted a review of SOEs and found that some had not established proper financial policies and procedures.
The PCB also found that some companies had failed to address the essential components in the formulation of standards, and therefore, it decided to develop standardised framework to harmonise the financial policies and procedures of SOEs.
The agency said it was important for SOEs to have standard accounting policies and procedures in place, and endorsed by the board, in order to create transparency and confidence in financial reporting.
“There should be policies, including guidelines for the recording, reporting, valuation of financial transactions and disclosure with financial statements,” the PCB established, adding that such policies would ensure consistency, comparability and transparency in reporting financial information among companies.
The board will thus work with the heads of the financial departments of the SOEs to harmonise financial policies and procedures, the PCB announcement said.
