BANDAR SERI BEGAWAN - August 14: Brunei's Deputy Finance Minister Selamat Munap has announced that the country has adopted international accounting standards and that all companies preparing financial statements in the sultanate will be required to use them from 2002.

"This is a very significant milestone," the deputy minister said in a statement released Monday. "The importance of quality, clarity, transparency and consistency in this age of globalisation is paramount, especially in the financial services sector."

Mr. Selamat said stability, good governance and effective policies were required for successful growth and development, and that Brunei was playing its part by joining other countries and institutions in the global push for a new international financial architecture.

"A strong accounting industry and auditing industry form part of this financial architecture. This, in turn, requires that the rules governing the industry be made more standard, more clear and more transparent.

"One of the building blocks for more effective economic management is the adoption and use of international accounting standards in the preparation and presentation of financial statements by companies. This will be made mandatory with effect from January 1, 2002."

To help smooth the transition, he said that several rules, regulations and laws would be reviewed and amended including Brunei's Companies Act.

"International accounting standards will mean that our companies' financial statements can be read with confidence by the international community," the deputy minister added.

Mr. Selamat also said that Brunei's Ministry of Finance would continue to review rules governing the local accounting and auditing industry following the first in a series of policy changes at the end of last year.

"We want more accountable auditing and accounting professionals," he said, adding that Brunei also wanted more local participation in the industry.

"Future plans include upgrading the status of the Brunei Institute of Certified Public Accountants (BICPA) as a more professional body capable of regulating all accountants and auditors in the country.

"In the long term, the possibility of enacting a professional Accountants Act in line with our neighbouring countries will be looked into as well."

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