1.1. Strengthening Poland’s financial The establishment of the Financial Services architecture and reducing the risk of Agency (KNF) in 2006 and the Audit Oversight financial market crises, including Commission (KNA) in 2009 is acknowledged as through increased transparency the vital pillars in reducing the risk of financial financial condition and performance of market crises and increasing transparency. The continued improvement in monitoring and public interest entities. control activities of the Financial Services Agency (KNF) have arguably been a major contributor to fact that Poland was the only EU member to escape recession and a significant banking collapse. 1.2. Facilitating the access of The slow progress of the need and desire to use corporate borrowers to credit independently audited financial statements as a from the formal financial sector by basis for lending is being felt within the banking shifting from collateral-based lending sector but the reliance upon guarantees persists decisions to lending decisions which as does the overarching impression that financial are financial performance based. statements are for compliance purposes only. Many banks in Poland extend their enquiries to the management accounting zone when making lending decisions. In the credit borrowing process, non-financial data regarding market expansion and business plans is required by suppliers of credit. Allowing shareholders and the The development of the Warsaw Exchange 1.3. public at to assess management and the relatively low cost of floating on the performance (financial reporting is a exchange is a positive influence on the building block of a market-based information being made available through monitoring of companies). exchange rules and the opportunity for shareholders to obtain high quality information is ever present. 1.4. Assisting the authorities to monitor In the case of quality assurance, monitoring and and enforce compliance with the enforcement are taking precedent over education relevant portions of the and training in the SMP sector. The need to acquis comply with the should be matched with communautaire. acquis the responsibility to teach and educate the audit profession that quality in the audit process and profession is to the benefit of the members of KIBR as well as being in the public interest. 2. Further enhancements to the statutory framework are needed. Take more advantage of the The 2013 Accounting Directive has new 2.1. simplified financial reporting energy to this area of financial reporting in framework permitted by the Directives Poland. Through FRTAP (see Appendix B) a for SMEs. study has been commissioned to examine the
1.1. Strengthening Poland’s financial architecture and reducing the risk of financial market crises, including through increased transparency the financial condition and performance of public interest entities. The establishment of the Financial Services Agency (KNF) in 2006 and the Audit Oversight Commission (KNA) in 2009 is acknowledged as vital pillars in reducing the risk of financial market crises and increasing transparency. The continued improvement in monitoring and control activities of the Financial Services Agency (KNF) have arguably been a major contributor to fact that Poland was the only EU member to escape recession and a significant banking collapse. 1.2. Facilitating the access of corporate borrowers to credit from the formal financial sector by shifting from collateral-based lending decisions to lending decisions which are financial performance based. The slow progress of the need and desire to use independently audited financial statements as a basis for lending is being felt within the banking sector but the reliance upon guarantees persists as does the overarching impression that financial statements are for compliance purposes only. Many banks in Poland extend their enquiries to the management accounting zone when making lending decisions. In the credit borrowing process, non-financial data regarding market expansion and business plans is required by suppliers of credit. 1.3. Allowing shareholders and the public at to assess management performance (financial reporting is a building block of a market-based monitoring of companies). The development of the Warsaw Exchange and the relatively low cost of floating on the exchange is a positive influence on the information being made available through exchange rules and the opportunity for shareholders to obtain high quality information is ever present. 1.4. Assisting the authorities to monitor and enforce compliance with the relevant portions of the acquis communautaire. In the case of quality assurance, monitoring and enforcement are taking precedent over education and training in the SMP sector. The need to comply with the acquis should be matched with the responsibility to teach and educate the audit profession that quality in the audit process and profession is to the benefit of the members of KIBR as well as being in the public interest. 2. Further enhancements to the statutory framework are needed. 2.1. Take more advantage of the simplified financial reporting framework permitted by the Directives for SMEs. The 2013 Accounting Directive has new energy to this area of financial reporting in Poland. Through FRTAP (see Appendix B) a study has been commissioned to examine the
ROSC-Poland-publication-version-final.docx