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.