Description:
This Report on the Observance of
Standards and Codes for Accounting and Auditing (ROSC
A&A) is a part of the World Bank (WB) and International
Monetary Fund (IMF) joint initiative to review countries use
of 12 internationally recognized standards/codes related to
economic stability and private and financial sector
development, including evaluating the country's
accounting and auditing practices based on internationally
recognized benchmarks and, based on that review, to make
policy recommendations to help it bridge the gaps between
current practices and those considered adequate. ROSC policy
recommendations are intended to help strengthen a
country's financial architecture, attract more foreign
direct investment and foreign portfolio investment, and
mobilize domestic savings, which, in turn, would allow for
pension savings. In addition, improved financial reporting
allows investors to better evaluate corporate prospects and
make informed investment and voting decisions, which results
in a lower cost of capital and a better allocation of
capital and resources. Financial reporting is also the
bedrock of corporate governance, allowing shareholders and
the public at large to monitor management's
performance. The formal financial sector in World Bank and
Group (WB&G) emerged after the signing of the Oslo
accord in 1993 and the Paris protocol in 1994. The Paris
protocol provided Palestinians the authority to administer
monetary and financial affairs in order to support expected
economic growth. Those expectations were never fully
realized because of ongoing tension among stakeholders,
political instability and restrictions on the mobility of
persons and goods.