The number of entities that enrolled in this year’s Financial Reporting (FiRe) Awards has increased by 133 per cent to about 844, from 362 in 2021.
The increase in the number of entities from both public and private sector participating in the Award indicates a significant uptake of financial reporting standards in the country.
Speaking ahead of the 20th edition, the Chairman of the FiRe Awards, who is also the Chief Executive Officer of NSE, Geoffrey Odundo said the country has improved transparency and accountability in the use of both public and private resources.
He says the growth in numbers has seen an improvement in financial reporting trends including the adoption of new accounting standards and implementation of environmental, social and governance (ESG) reporting.
“The FiRe Award is critical in promoting and enhancing the adoption of International Financial Reporting Standards (TFRS) by entities in the country thus enhancing efficient communication of financial information both locally and internationally,” said Odundo said.
He added that the increasing transparency lays the foundation for the country to prepare for the adoption of new standards on sustainability and disclosures for both private and private sector entities.
This is under the International Sustainability Standards Board (TSSB) and International Public Sector Accounting Standards Board (IPSASB) guidances, respectively.
The awards are aimed at promoting financial reporting excellence, fostering sound corporate governance practices, and enhancing corporate investment and environmental reporting for financial transparency and accountability in public and private sectors.
“The emerging financial reporting practices highlight not only financial information but also non-financial indicators in decision making," Institute of Certified Public Accountants of Kenya (ICPAK) CEO Edwin Makori said.
"Incorporating non-financial data provides a more holistic view of the organisation, and factors that can impact business operations than financial data can deliver on its own,” Makori added.
Public Sector Accounting Standards Board (PSASB) chief executive Fredrick Riaga said there is an increasing demand in the country by users of financial statements, to link performance-related outputs and outcomes to financial information.
“ Linkages between financial and non-financial information, including sustainable and performance reporting is a crucial step towards giving meaningful information to the use of the annual reports, and this is what we are promoting in this year’s FiRe Award,” Riaga said.
The FiRe Award is the culmination of the assessment exercise conducted in November after reporting entities submitted their financial reports for evaluation.
Public and private sector entities submitted their entries in October for review by a panel of experts ahead of the award.
