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The Second Baltic IFRS Implementation and Adaptation Forum, organized by Latvian Business School , ACCA Registered CPD Provider, with support of ACCA Ukraine, Baltic and Caucasus States, took place in Riga, Latvia on 18 February 2010.

As participants pointed out, implementation of International Financial Reporting Standards (IFRS) is beneficial for businesses and investors. IFRS are designed to deliver comparability and transparency at the global level.

The key speakers at the Forum were:

• Nataliya Vovchuk, Head of ACCA Ukraine, Baltic and Caucasus States
• Francesco Bellandi, CPA, CA, ACCA DipIFR, NYSSCPA's International Accounting and Auditing Committee
• Rainers Vilans, Audit Manager, KPMG 
• Mārtiņš Valters, Ernst & Young, Manager
• Vratislav Mosa, Audit Manager, Deloitte
• Véronique Weets, specialist in International Financial Reporting Standards (IFRS), Professor of International Accounting and a faculty member of the Vrije Universiteit Brussel (VUB) and the University of Antwerp (UA)

During the event, participants, in particular discussed the issues of the future of financial regulation, last changes to IFRS, prospects of implementation of IFRS for small and medium-sized enterprises.

Nataliya Vovchuk, Head of ACCA Ukraine, Baltic and Caucasus States, talking about the future of financial regulation, pointed out: “It is still too early to give a definitive view of the regulatory landscape as proposals are still being consulted on at national and global levels. The debate will go on way into 2010. But some of the key points made by ACCA have been followed, notably on the welcome maintenance of national supervision as the bedrock of regulation. Speculation earlier this year about the introduction of some sort of 'super-regulator' has remained, mercifully, just that.”

In its new policy paper called The Future of Financial Regulation - An Update, ACCA calls for changes, including better ethics training for all directors including non executive directors, the implementation of a US style Consumer Financial Protection Agency in Europe and the urgent need for company boards to upgrade their risk functions.

Vratislav Mosa, FCCA, Audit Senior Manager at Deloitte Latvia, discussed the question “Do the financial statements reflect the wave on the market”. Observing three examples of public companies listed in Central European stock markets and discussing valuation challenges in their industries, it is possible to draw a conclusion on importance of financial statements. He said: ”The financial statements continue to reflect a stable and conservative view on the value of shares. Continuous efforts should be made by the standard setters to ensure simplification and practical application of IFRS related to valuation of assets.”

Talking about the new IFRS standard, Martin Valters, ACCA member and manager at Ernst&Young, said: “One of the aims of IFRS 9 is to reduce the complexity of accounting standards for financial instruments. Whether there is an increase or a decrease in the use of fair value for various financial instruments will depend on its business model for the particular entity. At the same time the new standard is expected to significantly change current practice of calculation of impairment losses.”

Alexander Lebedev, President of Latvian Business School, stated the current economic situation gives opportunity to look at the processes from the different angle, analyze mistakes and rethink some concepts, including in financial reporting: “This Forum is an excellent opportunity for professionals to get together, discuss current issues and listen to the point of view of experts”.

Photos from the event are available online at ACCA Ukraine, Baltic and Caucasus States Picasa Web Albums

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