| Author | Chhay Huoy |
| Call Number | AIT RSPR no.SM-04-22 |
| Subject(s) | Accounting--Cambodia
|
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master
of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-04-22 |
| Abstract | Accounting harmonization is becoming a facing issue for Cambodian with the external
encouragement from ASEAN, WTO and AF A and along with the trend of internal users,
that is the private companies, which are so far adopting the international standards. The
adoption of CAS will facilitate the development of equity markets and promotes economic
growth. In addition, it is expected to help Cambodia to attract foreign investment through
the confidence over the accounting system.
In Cambodia, there is a direct link between accounting requirements and the tax law.
This is may be the main encouragement for the registered companies to use the CAS. If
enterprises want to use their financial statements to attract investors, particularly foreign
investors, they must remove the effects of any distortions caused by the tax rules. For
example an industrial enterprise should recognize impairment losses on its plant and
equipment irrespective of the fact that the tax authorities will not allow the expense as a
deduction in determining taxable profits.
In 16 October 2004, the National Assembly of Cambodia approved a regulation
requiring all registered companies within the countries to use the Cambodian Accounting
Standards, which is based on International Accounting Standards for financial report for
periods starting on or after January 01, 2005. By means of fourteen interviews with
regulators, auditors and private company's financial and accounting managers, there is a
positive opinion for the adoption of Cambodian Accounting Standards. All the
interviewees accept the concept of common and standardized accounting systems and
believe the qualities of financial reporting will be improved to be more transparent, reliable
and realistic. But there are some doubts if the government regulations are effective enough
to put all the companies to use the CAS after January 01, 2005 and to get audited under the
Cambodian Standard of Auditing, and if the National Bank of Cambodia agrees to change
to the new system to have harmonization of accounting systems in the country.
Although the private companies are familiar with the IAS and expect that they will be
able to apply the CAS correctly and understandably, not all interviewees know sufficient
about CAS to get the fully compliance. Education and training is considered to be
important issue at the moment to bring all the private companies to get fully understand the
concept of CAS and the method of application, the largest transition issue, with audit firms
expected to play a key role in providing the consulting idea.
There is a great expectation for the success of implementing the CAS. With additional
training and education, the familiarity with IAS of the private companies, the intention to
use the CAS, will be important for Cambodian to get the standard adopted by all registered
companies and all financial institutions since they are willing and ready to change to CAS
as well due to the reason that the their accountants are educated under the international
standard. However, they are under the control of the NBC, unless NBC is changing to use
CAS, then they can be able to change to CAS too. |
| Year | 2004 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-04-22 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C.S. |
| Examination Committee(s) | Ramachandran, N.;
Dimmitt, Nicolas J. |
| Scholarship Donor(s) | Government of France |
| Degree | Research report (M.Sc.) - Asian Institute of Technology, 2004 |