Financial Crime World

Here is the converted article in Markdown format:

Accounting Standards in Haiti: A Mixed Picture

KAYES, Haiti - The Haitian accounting profession has made significant progress in recent years, but there is still much work to be done to bring its standards and practices in line with international best practices.

Progress Made

According to a report by the International Federation of Accountants (IFAC), Haiti has partially adopted several international accounting standards, including those on auditing, ethics, and public sector accounting. However, other areas, such as financial reporting and investigation and discipline, remain non-compliant.

Challenges Ahead

The Ordre des Comptables Professionnels Agrees d’Haiti (OCPAH), the country’s professional accountancy organization, has taken steps to bring its standards in line with international best practices. For example:

  • It has established a mandatory continuing professional development program for its members.
  • Plans to adopt the International Ethical Standards Board for Accountants (IESBA) Code of Ethics.

However, there are still challenges to be addressed:

  • The country’s public sector accounting standard is not based on international standards.
  • There is no clear timeline for adopting International Public Sector Accounting Standards (IPSAS).
  • The investigation and discipline system established by OCPAH does not fully meet all requirements of the IFAC’s Small and Medium Practices (SMP) Committee.

Government Efforts

The Haitian government has also taken steps to improve transparency and accountability in the country’s financial reporting. For example:

  • Tax Decree 29 requires large companies to prepare financial statements in accordance with the Plan Comptable National (PCN).
  • Small enterprises are only required to keep a record of their cash inflows and outflows.

Future Plans

OCPAH is working to strengthen its investigation and discipline system and bring its standards in line with international best practices. The organization has reported plans to adopt the IESBA Code of Ethics through a new accountancy law that would overhaul the entire regulatory framework of the profession.

Conclusion

While Haiti’s accounting profession has made progress in recent years, there is still much work to be done to bring its standards and practices in line with international best practices. OCPAH and the Haitian government must continue to work together to address these challenges and improve transparency and accountability in the country’s financial reporting.

Sources:

  • World Bank, Report on the Observance of Standards and Codes - Accounting and Auditing: Haiti
  • OCPAH, SMO Action Plan
  • Deloitte IAS Plus, “Financial Reporting Framework in Haiti”
  • Domond, Jean Marie, “Comment: Profession to the rescue of battered island” in International Accounting Bulletin
  • Nuthall, Keith, “Haitian recovery needs accountants” in Accountancy Age
  • U.S. Department of State, “2015 Investment Climate Statement - Haiti”

Disclaimer: IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.