LATIN AMERICAN CORPORATE GOVERNANCE ROUNDTABLE 28 APRIL 2000

LATIN AMERICAN CORPORATE GOVERNANCE ROUNDTABLE 28 APRIL 2000 DISCLOSURE AND TRANSPARENCY AN INTERNATIONAL VIEW Mary Keegan pwc

WHAT IS CORPORATE GOVERNANCE ABOUT? • Accountability protecting investors’ interests • Assisting the communication process • Importance recognised by the market Pricewaterhouse. Coopers

ACCOUNTABILITY MEANS…. . • Better governance structures eg independent directors, Audit Committees • Better explanations of corporate performance MDA, annual reports, interim reports • Better accounting! Pricewaterhouse. Coopers

ACCOUNTING HARMONISATION • A movement towards international “norms” driven by: markets, cross-border activity, IPOS technology peer pressure • Do local rules disadvantage Latin American companies? • Need to understand how local practices compare with international “norms” Pricewaterhouse. Coopers

“GAAP 2000” - ACCOUNTING BENCHMARKING • 2 primary objectives useful to have a summary of GAAP differences how far are we from IAS? • Why IAS? the only international framework high quality, due process interpretations, translations, practice aids Pricewaterhouse. Coopers

“GAAP 2000” - ACCOUNTING BENCHMARKING • About 50 countries • Self-assessment, by country groups • Methodology diagnostic questions limited to 60 “most important” issues Pricewaterhouse. Coopers

“GAAP 2000” - ACCOUNTING BENCHMARKING The process • initial country meetings by end-April • further local discussion • country summaries only available, by December • Some interesting early findings…. . Pricewaterhouse. Coopers

“GAAP 2000” - PRIORITIES FOR IMPROVEMENT? • Some differences business combinations segment reporting cash flows employee benefits • …. . and many exciting projects in the region to improve reporting • The profession driving change Pricewaterhouse. Coopers

AUDITING STANDARDS • We can compare local standards with ISAs • But we need to understand why differences in practice exist - environmental/cultural factors audit’s place in the reporting framework corporate governance Pricewaterhouse. Coopers

INTERNATIONAL FORUM ON ACCOUNTANCY DEVELOPMENT - THE “VISION” • Raising standards worldwide…. . financial reporting auditing corporate governance company law and regulation • …. . has clear benefits (market perception, cost of capital) • But requires all parties to work together Pricewaterhouse. Coopers