Firms Need to Improve Accounting Standards

Cambodia’s businesses need to dramatically improve their accounting standards if they are to attract interest from investors abroad and reach the standards necessary to list on the recently launched stock market, experts and government officials said yesterday. Speaking at the National Conference on Accountancy in Phnom Penh, business managers, economists and bankers said there are simply not enough qualified or responsible accountants in the country to serve the needs of firms here. There is also an issue of large, family-owned companies who are reluctant to reach international standards in auditing and accounting. … In 2007, the Ministry of Economy and Finance passed a series of proclamations requiring businesses to submit financial reports. The idea was to ready companies for the launch of the stock market, which finally started trading stocks past year and to date, has just one listed firm. But many businesses still do not comply with the law, said Sam Ghanty, an adviser to the National Accounting Council. …