As part of its effort to standardize Cambodia’s financial system, the Ministry of Finance is holding a four-day seminar to train 130 accountants, a top ministry official said Monday.
The accountants, who represent government ministries, factories, businesses, national and commercial banks, and the Phnom Penh Chamber of Commerce, are being trained so they can report to the Ministry of Finance in the future, officials said.
The government is changing its accounting laws in hopes of increasing tax revenue by providing for better government oversight of the public and private sector, Finance Minister Keat Chhon said.
By December, the National Assembly is expected to pass a law setting procedures for tax collection and auditing, which will mandate the use of international accounting standards, currently used by more than 100 countries. This will help attract foreign investment and corporate joint ventures, said Ngy Tayi, the ministry’s undersecretary of state.
“People won’t have to say ‘UK accounting’ or ‘US accounting.’ Everyone will use” the international standard, Ngy Tayi said.
The Council of Ministers approved a draft of the accounting law Sept 28. The law is not yet on the assembly’s agenda, Deputy Secretary General Chan Ven said.
The accounting law is one of five proposed components of the government’s financial reforms, along with a banking law, an insurance law, a stock exchange law and a constitutional finance law, which would control taxes and the national budget.
If it is approved, the accounting law will aid Cambodia in its campaign to join the World Trade Organization, which requires member nations to adhere to the international standard for accounting, officials say.
Government spokespeople say they believe that joining the WTO would help Cambodia’s economy by enabling the country to take advantage of the tariff agreements and trade regulations shared by WTO member nations.
“We would like the National Assembly to pass [the accounting law] as soon as possible so we can show the WTO,” Ngy Tayi said.