Therefore, to help set the stage for the discussion to follow, I would like to take this opportunity to expound on the Central Bank of Kenya’s perspective on compliance with International Financial Reporting Standards (IFRS), and specifically at the benefits from such compliance, the progress we have made, the link between IFRS and Basel II and the challenges ahead.
Acceptance and use of IFRS has become virtually universal, with many countries that hitherto operated their own national standards having phased them out for IFRS despite the associated challenges. International flows of investment capital and capital instruments across geographical boundaries have added a new impetus to the adoption of international standards globally.