IFRS Expert

Job Description

PURPOSE

The overall purpose of this assignment is to assist DBE in proper implementation of full IFRS and related activities arising from IFRS conversion process. The assignment includes two phases: Phase I will clarify the current gaps to reach IFRS and provide DBE with clear plans to adopt IFRS complaint systems. The assignment for this phase is covered in this TOR. Phase 2 will require the consultant’s assistance in implementation the end-to-end process of IFRS conversion.

SPECIFIC TASKS

The consultant is expected to bring his/her international experience, judgement and best industry knowledge to complete this assignment. In addition, the consultant should align with the IFRS roadmap developed by the AABB in undertaking the following tasks and activities:

A.Conduct gap Assessment between the existing DBE’s practices and IFRS, among other things, by considering the following:

• Review all relevant proclamation and policies related to IFRS implementation in Ethiopia.
• Review the IFRS Implementation Roadmap that requires all financial institutions and public enterprises to implement full IFRS beginning July 1, 2017.
• Review and assess the current accounting practices, control systems, policies, procedures and contractual agreements.
• Identify the gaps between current financial reporting framework and IFRS.
• Identify other system gaps e.g., IT, within the organization that need to be addressed to ensure full IFRS compliance of DBE.
• Undertake a detailed assessment of the gaps between the existing reporting framework and the IFRS requirements, with focus on accounting practice, policy, financial reporting, controls, procedures, financial statement presentations contractual agreements among others.
• Assess the changes in policies and procedures that may be required to reach IFRS.
• Assess the adequacy of personnel capacity and other resources for IFRS.
• Hold substantive discussions primarily with DBE’s senior management and appropriate staff. Meetings could be held with DBE’s external accountants, National Bank of Ethiopia, AABE, among others, as necessary.

B. Develop a detailed workplan for IFRS adoption including identification of appropriate IFRS specialists for different aspects of the activity.

• Detail all key activities and sub-activities that need to be completed to ensure DBE fully adopts IFRS by July 2017. A detailed Gantt chart must be included.
• Identify the type of IFRS specialist skills that may be required for all key activities
• Provide sufficient explanation for each activity
• Identify and recommend appropriate trainings for DBE senior management and staff in line with the gaps identified

C.Conduct a workshop to present assessment and explain the detailed workplan to DBE senior management and stakeholders as determined by DBE senior management. Input from the workshop would refine the assessment and the workplan.

D. Submit draft report and workplan to DBE’s senior management at least 2 days prior workshop.

E. Prepare a presentation and a report.

CONSULTANT REQUIREMENTS

A consultant is required for Phase I of the assignment as described under this TOR. It is however, highly desired, not required that the consultant hired for Phase I continues with Phase II assignment in the implementation of the end-to-end process of IFRS conversion.[1]

Senior-Level Expert in International Financial Reporting Standards

• Minimum of 10 years relevant international experience.
• Highly specialized accounting capability supported by relevant accounting professional qualifications/certificates such as ACCA, CPA and IFRS
• Experience working with financial institutions and IFRS globally.
• Experience in developing a technical assistance plan for financial institutions at first time adoption of IFRS.
• Competencies required include:
  • Fluent in spoken and written English.
  • Excellent writing and presentation skills.
  • Excellent workplan developing skills.
  • Ability to work under pressure and meet tight deadlines.
• Knowledge of the Ethiopian financial sector is an asset.
• Ability to provide the required services will be assessed through submission of:
  • Detailed CVs of consultants.
  • References on previous similar work.

[1] A separate TOR will be available for Phase II of the assignment following the completion of Phase I assignment under this TOR.

DELIVERABLES AND TIMEFRAME

The timeframe for this assignment under Phase I is 20 working days.[1]

The deliverables to be submitted by the consultant to DBE and EP include the following:

1. Submit Draft report and workplan to DBE Management (15 days after starting the assignment)

2. Present findings on gap assessment and detailed workplan in a workshop to DBE senior management and if necessary, to stakeholders identified by DBE senior management (2 days after submission of draft report)

3. Submit final presentation (PPT) and Report with detailed workplan (3 days after workshop)

[1] The timeframe for Phase II assignment is expected to be at least 1 year.

Indicating availability for phase II assignment would be highly desirable but not a requirement.

About the Organization

BACKGROUND

DAI Europe, together with consortium partners First Consult; Enclude; and ITAD, is managing the UKaid-funded Enterprise Partners (EP) and Women’s Entrepreneurship Development Programme (WEDP) which aim to support and transform the private sector and Ethiopia’s continued economic growth over the next 6 years with a total project budget of almost £70 million.

EP is utilising the Making Markets Work for the Poor approach (M4P) and has two main pillars to achieve the goal of integrating the poor, and especially women, in sustainable economic enterprises that create jobs and improve incomes. The planned impact is to create 45,000 jobs (75% of which will be held by women) and increase the incomes of 65,000 households by at least 20%.

The EP pillars are:

• The Finance Group is expected to achieve the outcome of increasing investment levels in the Ethiopian economy, particularly for growth-oriented small and medium enterprise. This will include funding of green technologies where appropriate and develop funding for green growth investment.
• The Agro-Industrial Group is expected to achieve the outcome of increasing returns on investment (productivity) and investment levels in the identified sectors of cotton/textiles, livestock/leather and horticulture, in order to achieve the impact of creating jobs and raising household incomes. Additionally this pillar will incorporate the promotion of climate change awareness and addressing women’s economic empowerment.

DFID is also funding the technical assistance component of a separate World Bank programme as the third main pillar, the Women’s Entrepreneurship Development Programme (WEDP). The objective of the WEDP is to increase the earnings and employment of micro and small enterprises (MSEs), owned or partly owned by female entrepreneurs in targeted cities.

Lastly, EP will be providing technical assistance to The Development Bank of Ethiopia (DBE) and participating financial institutions to the World Bank Small and Medium Enterprise Finance Project expected to start in the second half of 2016.

Background specific to this assignment

In January 2015, Accounting and Auditing Board of Ethiopia (AABE) was established pursuant to Financial Reporting Proclamation No. 847/2014. AABE prepared an IFRS Implementation Roadmap requiring all financial institutions and public enterprises to implement IFRS commencing July 1, 2017, and to make adequate preparations during the period covering May 2016 through June 2017.

DBE recognizes and expects that a proper implementation of IFRS would result in far reaching benefits to its overall operations. Among areas that would be impacted would be the bank’s core banking system, accounting and control systems, contractual agreements, and human resources operations. DBE also acknowledges that it does not have the expertise required to implement full IFRS across its operations. Hence, DBE requested the support of EP in acquiring the appropriate IFRS expertise to assist the bank in implementing IFRS and activities related to the implementation of IFRS.

About DBE

DBE is a specialized financial state-owned institution established to support the development agenda of the country. It plays a pivotal role in financing viable projects from the priority sectors of the government by mobilizing funds from domestic and foreign sources while ensuring its sustainability.

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