– as part of its 25th anniversary observances
Accounting firm Ram and McRae is spearheading an inaugural award for the best annual report and financial statement produced by a local company, geared towards improving accounting and auditing standards in the longer term.
The activity is one of a series to mark the firm’s 25th anniversary in July 2010 and is open to all Guyanese companies with published annual reports and financial statements and also includes insurance companies and state-owned entities whose reports are available to the judges. The first set of reports and accounts eligible for consideration will be those for the year 2009 and the winner will be awarded at an anniversary dinner on July 31, 2010.
Acknowledging that many reports over the years have had deficiencies, accountant Robert McRae, a partner in the firm, told reporters at a press conference yesterday that there is room for improvement though there has been a good effort over the years.
To ensure that the selection is impartial, professional and free from bias or controversy, the firm has requested several organizations to nominate persons to form a selection committee.
Two recognized chartered accountants, and nominees from the Guyana Consumers Association (GCA), the Private Sector Commission (PSC), the University of Guyana (UG), the Guyana Trades Union Congress (GTUC) and the Guyana Bar Association will form the committee.
The Institute of Chartered Accountants of Guyana has declined to appoint a nominee for reasons unknown.
The GTUC and the Bar Association have not yet named their nominees, however John Seeram will represent UG, Roubinder Rambarran was nominated by the PSC and Patrick Dial will be the voice from the GCA.
The criteria to be used will be based on similar awards in other countries where the local accounting institutes play a vital role in such awards. However, the committee is still to meet and decide on other criteria. One of its members, Seeram, pointed out that one of the main objectives was the imperative of encouraging excellent financial reporting. He pointed out that the users of the statements whether stakeholders, regulatory bodies or employees must be provided with well-documented reports in order to make decisions.
Seeram who is also a former accounting lecturer at the university pointed out too that the reports and statements influence crucial decisions with regard to the performances of companies as well as projections.
McRae said the committee would also look at the qualitative aspects of content, comprehensiveness and accuracy.
Rakesh Latchana another partner in the firm observed that there have been instances in the past where companies have not disclosed enough information, impacting on the accuracy of the documents. However there has been an improvement in this regard.
He said the firm envisages that the award will bring a new dimension to financial reporting in the current environment.