Stanbic Bank Uganda was last week declared winners of the 2014 Financial Reporting Awards organized by the Institute of Certified Public Accountants of Uganda (ICPAU).
Stanbic topped 76 other organizations after they provided reports that disclosed their main products, services and distribution methods, shared their product portfolio, bank structures and how they create value. Most of the competing organizations did not disclose the above to the FIRE Awards evaluators.
Stanbic on top of providing an in-depth financial report also ably discussed the dynamics of the macro-economic environment they operate in and acknowledged the emerging competition from telecom companies that are serving both the banked and unbanked.
They won the accolade because they were able to disclose an analysis of the bank’s non-financial resources and the stakeholders’ relations management strategies. The risk management strategies including the applicable risk governance reporting structures were not well disclosed in some reports according to the evaluators.
Financial reporting includes the following such things as external financial statements (balance sheet, income statement, statement of cash flows, and statement of stockholders’ equity)
It can also include press releases and conference calls regarding quarterly earnings and related information
Lion Assurance Company an insurance service provider came second to win the silver award while Centenary Bank was third and took the bronze award. There were 39 new entrants participating for the first time.
Stanbic also won the Corporate Governance Award, Best Listed Entity Award and bettered the Banking Services financial reporting award.
CPA Ben Patrick Kagoro, the President of the Institute of Certified Public Accountants of Uganda (ICPAU) said good financial reporting is an aspect that has been ignored by many organizations.
“Many times these institutions overlook transparency for profit ability. However, they forget that it is not how a business flourishes today, but how long it can last,” said Kagoro.
He stressed that financial records are a prerequisite for growth, expansion and value addition of any business.
“Sound financial records are required for a company to be listed on the stock exchange and therefore not having quality books of accounts will hurt business,” said Kagoro.
The theme of the 2014 FiRe Awards was “Financial Reporting: A catalyst for Investor Confidence.”
Eng. Dr. Frank Ssebowa the Executive Director of the Uganda Investment Authority (UIA) who was the guest speaker called upon accountants to provide accounting services to Uganda’s Small and Medium Enterprises which he said, “There book keeping is still wanting.”
“You can do it as a Corporate Social Responsibility to help these entities improve on their books of accounts,” Ssebowa said.
Uganda’s Finance Minister Maria Kiwanuka called for increased participation of Small and Medium Enterprises in the FiRe Awards.
She pledged to ensure that the quality of accounting information reported by public entities is improved.
Source : East African Business Week