Angola: Banking Sector Adapts to IASB System

Luanda — The Angolan banking sector has adapted to the harmonised accounting system of the International Accounting Standards Board (IASB), a European body responsible for drawing up and publishing standards used by over 140 countries around the world.

The IASB established the International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), elements that guide the preparation and presentation of companies' financial statements.

According to the deputy director of the Regulation and Organisation Department of the Financial System, Pedro NTiama, the full adoption of the IAS/IFRS by the sector has allowed the country to join the group of countries that require or allow the application of such tools.

Pedro NTiama was speaking at the 3rd edition of the training seminar for economic journalists having addressed the theme on the theme "Accounting Standardisation and Harmonisation in the Angolan Financial Sector".

To adopt the harmonised accounting tool, the National Bank of Angola (BNA) took 14 years (2005-2009), a process that required the acquisition of new software and over 60 training sessions for banking sector staff.

Pedro Ntiama added that Angola went through several stages before reaching its full capacity, undergoing a diagnosis at a national level.

Prior to this step, the official said, the financial sector had a general account plan (PGC) that caused huge difficulties for commercial banks, namely with accounting records, whenever new products were created, which required new sub-accounts to be opened.

Taking into account the role of the Central Bank and the recommendations of the International Monetary Fund (IMF), the World Bank and other multilateral organisations said Angola was not meeting the international demands.

"We worked on it until we converged. This work led initially to us changing our general accounting plan, which has now been revoked", Ntiama said.

Today, Ntiama said, commercial banks and the BNA no longer need to create sub-accounts, after the current plan of accounts has been aligned with international standards...Read more on All Africa

Source: All Africa