Standard financial disclosure sought
Standard financial disclosure sought
CEBU, Philippines (AFP): Members of the Asia-Pacific Economic
Cooperation (APEC) forum need a common standard for financial
disclosure if they want to boost capital markets, an economic
think-tank said Saturday.
The Singapore-based Pacific Economic Cooperation Council
(PECC) said this was one of the recommendations submitted to the
APEC finance ministers' meeting, being held this weekend in this
central Philippine city.
It also called on APEC members to find more ways of financing
infrastructure development and liberalize cross-border capital
flows.
The council said standard requirements for APEC would make it
easier to go to equity and bond markets to raise funds and would
also enable investors to compare companies from different
economies.
Standard requirements should include a minimum list of
disclosure items in financial statements, unified accounting
principles, external auditing systems and a common language.
PECC recommended firms and stock exchanges in APEC adopt
global standards now being drawn up by the International
Organization of Securities Commissions and the International
Accounting Standards Committee.
The group called on APEC members to deregulate their capital
markets, mobilize domestic savings and attract more institutional
investors such as life insurance firms and pension funds.
While calling for liberalized capital flows, PECC said this must
be timed correctly, adding that APEC economies could establish
cooperative systems to ensure financial and exchange rate
stability.
PECC was one of three non-government groups that met with the
ministers to discuss the major issues of the meeting, namely
capital flows, opening of capital markets and private sector
investment in infrastructure.
The aim of the meeting is to find ways to attract more private
sector funds to finance the mammoth infrastructure needs of the
developing countries of Asia, which multilateral agencies
estimate will hit 1.5 trillion dollars in the coming years.
Various officials at the meeting have warned that governments
cannot afford the fund the development needed if the region's
dynamic growth is to be maintained and that private sector
financing is needed to bridge the gap.
The APEC Business Advisory Council and the APEC Financiers
Group also met with the ministers on the same issues.