International Round Table Discussion of: «Issues of Application of New International Standard IFRS 9 «Financial Instruments»» and «Modern IT-Audit and Information Security»
On the 6th of April 2017 the group of Companies “Baker Tilly Uzbekistan”, an independent member of one of the largest audit and consulting networks in the world “Baker Tilly International”, alongside with Banking and Financial Academy of the Republic of Uzbekistan organized and successfully conducted an International Round Table Discussion of «Issues of Application of New International Standard IFRS 9 «Financial Instruments»» and «Modern IT-Audit and Information Security».
Adoption of financial statements prepared in accordance with International Standards (IFRS) – is one of the most important factors of enhancement of efficiency of corporate management, investment attractiveness, competitive ability and business transparency. There is a specific relationship between the assessment of corporate management effectiveness and financial statements prepared in accordance with IFRS and that is absolutely true and applicable to the banking sphere.
As it is generally known, on the 7th of February 2017 the Republic of Uzbekistan adopted a «Strategy of Actions in the Priority-Driven Directions of Development of the Republic of Uzbekistan», approved by Decree № УП-4947 of the President of the Republic of Uzbekistan. The mentioned strategy is being carefully considered in many countries. It has already been highly appreciated and awoken interest in many developed countries and international financial institutions, like the World Bank, EBRD, ADB, Islamic Development Bank (IsDB). The strategy has determined the following directions of economy development as the first-priority ones:
- improvement of monetary and credit policy by application of instruments in accordance with the progressive international experience;
- intensification of reformation as well as stabilization of banking system;
- expansion of perspective investment project crediting;
- further development of economic cooperation including extension of relationships with leading international and foreign financial institutions;
- development of investment climate;
- attraction of foreign investments.
Implementation of the above-mentioned actions is impossible without adoption of the International Financial Reporting Standards.
Moreover, in connection with increase of application and introduction of information technologies by companies and, especially by banks, the data system vulnerability also upswings as well as risks and threats of considerable direct financial losses. In the world practice the number of cyber attacks on banking payment systems is growing rapidly. Therefore, there is necessity in IT-audit to determine and identify the types of risks. It is extremely important to ensure the highest level of protection for effective functioning of the mentioned systems since any malfunction or any deliberate harmful action may have huge negative consequences not only at the level of a single bank but also at the level of the whole financial system of the country and even of the world financial system, taking into consideration the scope of the world modern integration.
To get acquainted with the available advanced practice in the current field, a delegation of experts from audit and consulting network “Baker Tilly International”, carrying out the activity in 147 countries of the world and having headquarters in London, Great Britain, has conducted an International Round Table Discussion of such important topics as «Issues of Application of New International Standard IFRS 9 «Financial Instruments»» and «Modern IT-Audit and Information Security». The Discussion was organized in cooperation with Banking and Financial Academy of the Republic of Uzbekistan. The mentioned topics, as the practice proves, are very important, especially for the modern bank specialists’ activity due to development and integration of the global financial markets, as well as extensive usage of information systems in the work of banks with companies and individuals. Based on the results of the Round Table Discussion, the topics were of interest to the management of banks of the Republic of Uzbekistan, heads of internal audit departments, IT departments and financial services, as well to employees of the state organizations (Central Bank, State Tax Committee, Ministry of Finance of the Republic of Uzbekistan, etc.).
The Round Table Discussion was attended by 150 specialists, including representatives of the Central Bank of the Republic of Uzbekistan and International banks such as J.P.Morgan (USA), Commerzbank (Germany) in Uzbekistan, International Financial Corporation (IFC), leading specialists of banking and financial organizations, employees of all banks of the Republic of Uzbekistan, professional and teaching staff, senior scientific associates-applicants and postgraduates of leading economic universities of the Republic.
In the process of discussion, a positive evaluation has been given to the achievements in the field of liberalization of the banking system in our country according to the criteria of the World Bank and International Financial Corporation provided for in the annual report on entrepreneurial activity «Doing Business 2016».
Oleg Daminov, the managing partner of “Baker Tilly Uzbekistan”, has commented upon the results of the Round Table Discussion:
«As it is known, the Republic of Uzbekistan demonstrates an impressive generally recognized progress in its economy with the annual GDP growth topped 8 per cent. Against the background of the global financial turbulence, emergence of recession signs and considerable decrease of economic indicators in a number of countries, the Republic of Uzbekistan demonstrates reasonable and graduate policy of economic growth, including constant enhancement of business and investment climate. Establishment of the State Investment Committee of the Republic of Uzbekistan on the 31st of March 2017 became one of the last important events that signify a new stage in the process of improvement of mechanism on encouragement of investment volume enhancement, creation of more favorable conditions for investment activity. A special attention has been given to necessity of diversification and development of investment cooperation with international financial institutions and leading foreign banks. In connection with that, we think that it is important and necessary to render assistance in improvement of banking system of the Republic of Uzbekistan, including provision with up-to-date knowledge about changes and development of the global financial system as well as with the review of regulation procedures and accounting of financial instruments.
We consider the evaluation of the international community as deserved. According to that evaluation, Uzbekistan is in the top five rapidly growing economies among the developing countries and, the most important thing, such achievement has not been based on short-term forced measures, but represents a long-lasting stable trend founded on conducted successful reforms and economy modernization.
I would like to express my sincere gratitude to the Central Bank of the Republic of Uzbekistan as well as to the management of Banking and Financial Academy for direct support and organization of such an important event. Special thanks to our colleagues from “Baker Tilly International” for the excellent presentation of the most topical and practical information on the Round Table issues».
During the Round Table Discussion the topical issues of application of new International Standard IFRS 9 «Financial Instruments», expansion of investment activity, increase of capitalization and banks, ensuring of information security and protection, conduct of qualitative IT-audit and risk assessment, as well as issues of investment program implementation, priority directions of investment support to innovative activity of enterprises of the real and banking sector, issues of improvement of measures on compliance of bank financial reporting with the international standards have been considered.
Based on the results of the International Round Table Discussion, scientific and practical recommendations as well as suggestions have been taken into account. Participants stated that conduct of high-professional International Round Table Discussions on such topical issues as adoption and application of up-to-date knowledge in IFRS, as well as IT-audit and information protection will directly assist in further qualitative development and modernization of banking field in the Republic of Uzbekistan on the basis of modern international standards.