Business Quest 
The 19th edition of the Financial Reporting (FiRe) Award has today been launched, inviting reporting entities to prepare and submit their Annual Financial Reports for assessment for this year’s FiRe Award.
Entries for the private sector are open from today the 22nd day of September 2021 to 30th October 2021 similarly the public sector opens from toady to 30th October 2021. The FiRe Award is aimed at measuring financial reporting compliance levels among corporate entities.
This year, the Retirements Benefits Authority (RBA) has joined as a new promoter of the FiRe Award. The other promoters of the Award are The Institute of Certified Public Accountants of Kenya (ICPAK), Public Sector Accounting Standards Board (PSASB), Nairobi Securities Exchange (NSE) Plc and Capital Markets Authority (CMA). Following RBA’s move to join the FiRe Award, all registered Retirement Benefits Schemes can now participate by submitting their latest financial statements for evaluation and award in the ‘Pension Schemes Category.’
This year’s event focuses on how the COVID 19 pandemic has affected businesses and livelihoods. The event will also highlight strategies employed by organisations to remain afloat, despite the constrained business environment and reduced incomes that has affected how entities make their financial reporting.
The theme of this year’s award is “Promoting Financial Reporting Excellence In Uncertain Global Economy”. PSASB Chief Executive officer, CPA Fredrick Riaga, said that FiRe Award is an indispensable event for improving entities’ compliance with International Public Sector Accounting Standards (IPSAS) reporting framework for transparency and accountability. He added that the adoption of International Financial Reporting Standards (IFRS) by entities has boosted business efficiencies, enhanced comparability and better communication with stakeholders.
“IPSAS and IFRS adoption has largely been positive in reducing investment risks and attracting capital. Disclosure of financial information has also helped in fostering financial prudence and public participation in financial management. This has indeed contributed to the enhancement of accountability and transparency of public funds,” Mr. Riaga said.
The CMA Chief Executive Officer, Mr. Wycliffe Shamiah, said COVID-19 still poses risks to regulated entities since sustained disruption leads to sustained erosion of incomes. He, however, noted that “despite the threat posed by COVID 19, capital markets have remained resilient, and he is optimistic that the projected economic growth will support a steady recovery of the market”.
ICPAK Chief Executive Officer, CPA Edwin Makori, noted that the pandemic has greatly revolutionised accounting in the country. “The pandemic has significantly changed how financial reporting is done. Over the years, our focus has been on the requirements of the standards. This year, our focus is on the practical challenges of applying the Accounting Standards amidst COVID-19,” said CPA Makori.
The NSE Chief Executive and Chairman of the FIRE Award Executive Committee, Mr Geoffery Odundo, observed that “The heightened turmoil in global financial markets, precipitated by the ongoing pandemic calls for a sound reporting and disclosure framework. This will ensure that investment decisions are based on accurate and timely information and enhance confidence in the capital markets while also lowering barriers to access to capital for issuers.”
RBA Chief Executive Officer Mr. Nzomo Mutuku said that “RBA is delighted to join as FiRe Award promoters to upscale the financial reporting of registered retirement benefits schemes. “We hope that through this partnership, RBA will strengthen its regulatory role and enhance financial disclosure by Retirement Benefit Schemes which control over Kshs.1.2 trillion worth of assets.
Last year, FiRe Award attracted 294 entities with expectations of similar numbers or more as the public sector deepens participation in the FiRe Award.
