Journal - icparwanda.com · IFRS 9 FINANCIAL INSTRUMENTS, ... vidually in the practice of...

IFRS9

is likely to affect all sectors but mostly; banks

JournalJANUARY - MARCH 2018 NOT FOR SALE iCPAR QUARTERLY BULLETIN

THE iCPAR

A publication of the Institute of Certified Public Accountants of Rwanda

ISSUE 3

IFRS 9 FINANCIAL INSTRUMENTS,

IFRS9

The Institute is the sole professional accountancy organization established by law No. 11/2008 of 6th May 2008 with a broad mandate to grow and regulate the accountancy profession

To build a strong and engaged professional accountancy organization that anticipates stakeholder expectations and acts in the public interest

OUR OffICE

KG 501 St 21, behind Career Center BuildingP.o.Box: 3213 Kigali RwandaT: +250 784103930 F: +250 280103930 E: [email protected]

ABOUT US

WhAT WE dO

VISION

MISSION

We regulate the accountancy profession; We preserve the integrity of the accounting profession; We promote the competence and the capacities of own members.We deliver accounting qualifications, programs and examinations.We promote compliance with professional standards

A strong, relevant and sustainable profession

JANUARY - MARCH 2018A pUbliCAtioN of tHe iNstitUte of CeRtified pUbliC ACCoUNtANts of RwANdA

3THE iCPAR JOURNAL

OUR OffICE


Inside this Issue

4. Foreword

5. Annual AGM notice

7. The Commission for Inspection

8. IFRS 9 Financial Instruments, is likely to affect all sectors but mostly; banks

11. Release of December 2017 examination results

11. Updates on the upcoming new CAT qualification

dISCLAIMERViews expressed in the journal are not necessarily those of the institute, management and employees.

12. New CPD policy to be effective 1st July 2018

16. If you want to be and remain relevant in the business and finance world, it is critical that you attain Professional Accounting Qualifications- Kajungu Clode

18. Accountants in history

19. List of accounting firms licenced by iCPAR as at 31 January 2018

21. 2018 CPD Calendar

22. Humour, Crossword

DISCLAIMER PUBLISHER

17 1813

Reproduction of any article in this journal without permission is prohibited. The editor reserves the right to use, edit or shorten articles for accuracy, space and relevance

Copyright © iCPAR 2017. All rights reserved.Copyrights and all / or other intelectual property rights on all designs, graphics, logos, images, phots, texts, trade names, trademarks, etc in this publication are reserved. The reproduction, transmission or modification of any part of the contents of this publication is strictly prohibited.

OUR OffICE


13. KIM University; One of the tuition providers of CPA and CAT Rwanda

JANUARY - MARCH 2018iCPAR QUATERLY BULLETIN

4 JournalThe iCPAR

Dear ICPAR Member,

Happy new year once again!

As per our commitment of ensuring that we regularly keep you abreast of the developments in the accountancy profession and beyond, here we are with the 3rd issue.

Firstly, I would like to thank all firms that managed to submit their Audit Quality Assurance (AQA) progress report which was purposely intended for monitoring the firm’s compliance with International Standards on Quality Control 1 (ISQC 1) relating to firm-wide audit quality control policies and procedures, and the IESBA Code of Ethics for Professional Accountants. Well done!

It is important that we enhance the quality of reporting by ensuring that service providers in the accountancy profession adhere to all the relevant requirements. Similarly, professional accountants must constantly upgrade their skills; improve on the processes and work together effectively so that they continue to instill confidence and public trust.

We believe our member firms will walk the talk by ensuring that what they submitted in the AQA progress report is actually implemented. This year, in collaboration with both the Inspection and Disciplinary Commissions, the institute will carry out a monitoring exercise towards ISQC 1 compliance. We request maximum collaboration with the team that will be carrying out that exercise.

I would like to take this opportunity to remind our members that we shall have an ordinary meeting of general assembly in line with article 11 of law no. 11/2008 on Friday, 23rd of March 2018. A notice of the same has also been issued and we expect all our members to attend. Please ensure that you are a member in good standing by fulfilling all the requirements prior to the meeting.

Congratulations to all our students who passed their exams and to those who became iCPAR members this year. So sorry for those that never managed to pass their papers; and we believe next time they will, if they promptly follow guidance of their tuition providers whilst preparing themselves thoroughly in good time.

Wishing you all the best for 2018 and looking forward to working more closely with you in the development of our profession and the nation at large.

AmIn mIrAmAgo Chief Executive Officer | Secretary General

Foreword

I would like to thank all firms that managed to submit their Audit Quality Assurance (AQA) progress report which was purposely intended for monitoring the firm’s compliance with International Standards on Quality Control 1 (ISQC 1) relating to firm-wide audit quality control policies and procedures, and the IESBA Code of Ethics for Professional Accountants. Well done!

AMIn MIRAMAgoiCPAR CEO | SG


5THE iCPAR JOURNAL

Annual AGM noticeNOTICE IS HEREBY GIVEN THAT THE 9TH ANNUAL GENERAL MEETING (AGM) WILL BE HELD ON FRIDAY, 23RD MARCH 2018 FROM 3:00 PM AT SERENA HOTEL, KIGALI.

Article 14: Without prejudice to the provisions of article 12 of this law, the meetings of the General Assembly shall be presided over by the President of the Governing Council of the Institute, who is also the President and Le-gal Representation of the Institute. In case of his or her absence, he or she shall be replaced by the Vice President.

AgEnDA ItEM FACILItAtoR tIME ExPLAnAtIon

1. ARRIVAL AND REGISTRATION

iCPAR Secretariat 3:00 to 3:30 Receive members

2. QUORUM - To note if quorum is achieved. Quorum to be based on the members in good standing.

President 3:30 to 4:00 Article 13: The General Assembly shall be valid if attended by at least one half (1/2) of its members. If a quorum is not attained, the meeting of the General Assembly shall be adjourned to another day. During the next meeting, convened in ordinary way, the members present shall validly take decisions, irrespective of the quorum required.

3. WELCOME NOTE AND APOLOGIES

President 4:00 to 4:10 All members in attendance

4. MATTERS ARISING - from the AGM held on 24th March 2017

President 4:10 to 4:30 For information and follow up

5. GOVERNING COUNCIL REPORT To receive the President’s report

President 4:30 to 5:00 Article 20: The Governing Council shall prepare the Annual Activity Report for the previous year ended Dec, 2017.

6. ICPAR LOYALTY CARD presentation to members

CEO|SG 5:00 to 5:10 For information

7. NEW CPD POLICY presentation to members

President 5:10 to 5:30 For information


6 JournalThe iCPAR

8. AUDITED FINANCIAL STATEMENTS:

a. To receive the Auditor’s report

b. to adopt the audited financial statements

Auditor/CEO|SG 5:30 to 5:50 For adoption and approval

9. APPOINTMENT OF AUDITORS:

To appoint or reappoint institute’s auditors for the year 2018

President 5:50 to 5:55 Article 78: Any member of the Institute in public practice of accountancy, not being a member of the Governing Council of the Institute, may be elected the auditor of the Institute. The auditor is elected by simple majority of the members present at the annual general meeting for a renewable term of two (2) years.

10. 2018 BUDGET President 5:55 to 6:15 Article 20: The GC shall prepare the draft budget of the Institute and submit it to the General Assembly for approval;

11. DISCUSSION OF MEMBER ISSUES

President 6:15 to 6:45 Contributions over the building fund;

Implementation support for the AQA action plan

12. A.O.B: To discuss any other business whose notice will have been received

President 6:45 to 7:15 For information Purposes

13. DINNER All 7:15 to 9:30 Enjoyment and Networking

CPA Mkombozi Karake BoscoPresident of the Governing Council

21st February 2018


7THE iCPAR JOURNAL

CPA Stephen InegetMember

CPA Boniface MutuaSecretary

CPA Felix TuratsinzeChairman

The Commission for Inspection

right to practice public accountancy;

• Carry out any other necessary activity for the fulfilment of the institute’s re-sponsibilities. The term of office for the members of the Commission is three (3) years renewable only once.

While performing its duties, the com-mission is allowed to seek technical as-sistance from any person. They currently meet every Thursday of the third week of each Quarter i.e. January, April, July and October.

The Commission for Inspection submit its reports to the governing Council of the In-stitute. Any inspected person who is not satisfied with the decision taken by the Governing Council, may appeal to the General assembly. This has to be done in writing.

The Commission is entitled to perform general inspection of any firm and or member who has been given a license to practice as may be appropriate. To facili-tate a smooth operation of this activity, the inspected person or his or her employees may be asked to provide explanations and present the accounting records or any other necessary documents and may photocopy them – this act is not treated as a breach of professional secrecy.

Similarly, the Commission may be re-quested to perform a special inspection at such a time as may be appropriate or upon request by the Governing Council of the Institute.

It is prohibited to the Commission for Inspection or its staff to disclose profes-sional secrecy, unless it provided for by the law or required by a competent court. Any person who discloses professional secrecy shall be liable to sanctions in ac-cordance with the code of professional conduct and ethics.

The commission for inspection has con-tributed a lot towards getting the accoun-tancy profession to the next level and it has promised to work hand in hand with the secretariat to ensure that ICPAR mandate is realized especially in regard to firm’s compliance with International standards on Quality Control 1 (ISQC 1) as we endeavor to obtain full IFAC mem-bership soonest.

GET TO KNOW YOUR COMMISSIONS

The law, article 31 elaborates on the composition of the Commission. It states that the Commission shall be

composed of 4 persons appointed as fol-lows:

I). Chairman of the Commission and two other members elected by the General Assembly of the Institute from among the Certified Public Accountants. And the Chairperson should not engage indi-vidually in the practice of accounting or auditing.

II). The other person should be experienced in accounting and elected by a consor-tium of recognized universities and col-leges offering courses leading to a qual-ification in accountancy. The members of the Commission shall elect a secretary from among themselves.

The current chairperson is CPA Felix Turatsinze and the Commission secretary is Boniface Mutua, where the former is serving his first term while the later is in his second term.

ARtICLE 32: CoMMISSIonS RoLES AnD RESPonSIBILItIES

The Responsibilities of the Inspection Com-mission are as follows:

• Monitor Compliance with the National Accounting Standards;

• Monitor the conduct of firms exercising the accounting profession;

• Provision of necessary recommendations to the Governing Council;

• Advise on the draft national standards in preparation of financial statements, au-diting and accounting in Rwanda to be published by a Ministerial order;

• Recommend to the Governing Council of the Institute or the General Assembly to suspend or withdraw a member who is guilty of professional misconduct, the


8 JournalThe iCPAR

In July 2014, the International Ac-counting Standards Board (IASB) completed its response to the

financial crisis by issuing the final version of IFRS 9, Financial Instru-ments. IFRS 9 sets out a model for classification and measurement, an ’expected loss’ impairment model and a transformed approach to hedge accounting.

The IASB had previously issued versions of IFRS 9 that introduced new classification and measure-ment requirements in 2009 and 2010 and a new hedge accounting model in 2013. The latest publica-tion consolidates the previous ver-sions of the standard, and replaces IAS 39, Financial Instruments: Rec-ognition and Measurement. It also changes some of the requirements of the previous publications. IFRS 9 is effective for annual periods be-ginning on or after 1 January 2018.

Classification determines how fi-nancial assets and financial liabil-ities are accounted for and mea-sured in financial statements. The requirements for impairment and hedge accounting are based upon the instruments classification.

IFRS 9 Financial Instruments, is likely to affect all sectors but mostly; banks

The standard introduces a princi-ple-based system for the classifica-tion and measurement of financial assets, which depends upon two characteristics: The entity’s busi-ness model for managing the finan-cial asset and the financial asset’s contractual cash flow characteris-tics. IFRS 9 utilises a single classi-fication approach for all types of financial assets, which includes those that contain embedded de-rivative features. Financial assets are now not subject to complicat-ed bifurcation requirements.

The business model approach re-fers to how an entity manages its financial assets in order to gener-ate cash flows either by collect-ing contractual cash flows, selling financial assets or both. Financial assets are measured at amortised cost where the business model’s objective is to hold assets in order to collect contractual cash flows. The new standard clarifies the ex-isting guidance the collection of the assets’ contractual cash flows. When determining the applicabil-ity of this business model, an enti-ty should consider past and future

sales information. If an entity holds financial assets for sale then it will fail the business model test for ac-counting for the financial assets at amortised cost. However, sales activity is not necessarily inconsis-tent with the business model if they are infrequent and insignificant in value but where these sales are frequent and significant in value, an entity needs to assess whether such sales are consistent with an objective of collecting contractual cash flows.

The sales may be consistent with that objective if they ‘are made close to the maturity of the finan-cial assets and the proceeds from the sales approximate the collec-tion of the remaining contractu-al cash flows’. For many entities, the assessment will be relatively straightforward as their financial assets may be simply trade receiv-ables and bank deposits for which the amortised cost criteria are like-ly to be met. For those entities with a broader range of financial assets such as investors in debt securities, and insurance companies, the mo-tivations behind the disposal of the assets will have to be considered.

NEW MEASUREMENT CAtEgoRY

IFRS 9 includes a new measure-ment category whereby financial assets are measured at Fair Value Through Other Comprehensive Income (FVTOCI). This category is used when financial assets are held in a business model whose objec-tive is both collecting contractual cash flows and selling financial as-sets. Unlike the available-for-sale criteria in IAS 39, the criteria for measuring at FVTO-CI are based on the


9THE iCPAR JOURNAL

financial asset’s cash flow charac-teristics and the entity’s business model. This business model will involve a greater frequency and volume of sales with the possible objectives of managing liquidity or matching the duration of finan-cial liabilities to the duration of the assets they are funding. This cate-gory was introduced because of the concerns raised by preparers who sold financial assets in greater volume than was consistent with the previous business model and would, without this category, have to record such assets at Fair Value Through Profit or Loss (FVTPL).

Financial assets may qualify for amortised cost or FVOCI only if they give rise to ‘Solely Payments of Principal and In te res t ’

(SPPI) under the contractual cash flows characteristics test. Many instruments have features that are not in line with the SPPI condition. IFRS 9 makes it clear that such fea-tures are disregarded if they are ‘non-genuine’ or ‘de minimis’.

IFRS 9 now provides more guid-ance on SPPI. For contractual cash flows to be SPPI, they must include returns that are consistent with the return on a basic lending arrange-ment to the holder, which gener-ally includes consideration for the time value of money, credit risk, liquidity risk, a profit margin and consideration for costs associated with holding the financial asset over time such as servicing costs.

Thus if the con-tractual ar-

range-

ment includes a return for equity price risk, then this would be in-consistent with SPPI.

IFRS 9 introduces new guidance on how the contractual cash flows characteristics assessment ap-plies to debt instruments that may contain a modified time value el-ement. For example, those instru-ments that may contain a variable interest rate. These characteristics will result in an instrument failing the contractual cash flow charac-teristics test if the resulting undis-counted contractual cash flows could be ‘significantly different’ from the undiscounted cash flows of a benchmark instrument that does not have such features.

Interest rates set by a government or a regulatory authority are ac-cepted as a proxy for the consider-ation for the time value of money if those rates provide consideration

that is ‘broadly consistent with consideration for the passage of time’. Such cash flows are

considered SPPI as long as they do not introduce risk or volatility, which is in-consistent with a basic lending arrangement.

Any financial assets that are not held in one of the two busi-ness models above are measured at FVTPL, which is essentially a

residual category. Also included in this category

are financial assets that are held for trading and those

managed on a fair value basis. Financial assets are reclassified

when, the entity’s business model for managing them changes. This is not expected to occur frequently


10 JournalThe iCPAR

and it ensures that users of finan-cial statements are provided with information on the realisation of cash flows.

IAS 39 was felt to work well as regards the accounting for finan-cial liabilities, therefore the IASB felt that there was little need for change. Thus, most financial liabil-ities will continue to be measured at amortised cost. IAS 39 also per-mitted entities to elect to measure financial liabilities at fair value through profit or loss (fair value option). The changes introduced by IFRS 9 are restricted to those li-abilities designated at FVPL using the fair value option. Fair value changes of these financial liabili-ties are presented in other compre-hensive income to the extent that they are attributable to the change in the entity’s own credit risk. If this would cause an accounting mismatch, then the total fair val-ue change is presented in profit or loss. This change in IFRS 9 is designed to eliminate volatility in profit or loss caused by changes in the credit risk of financial liabilities that an entity has elected to mea-sure at fair value.

NEW IMPAIRMENT MODEL

IFRS 9 introduces a new impair-ment model for financial assets that is based on expected losses rather than incurred losses. It ap-plies to amortised-cost financial assets and those categorised as FVTOCI.It also applies to certain loan commitments, financial guar-antees, lease receivables, and con-tract assets. An entity recognises expected credit losses at all times and updates the assessment at each reporting date to reflect any changes in the credit risk. It is no

longer necessary for there to be a trigger event for credit losses to be recognized and the same impair-ment model is used for all financial instruments that are impairment tested.

Other than purchased or originat-ed credit-impaired financial assets, IFRS 9 requires entities to measure expected credit losses by recognis-ing a loss allowance equal to either of the following:

• 12-month expected credit losses. This measurement is required if the credit risk is low at the report-ing date or the credit risk has not increased significantly since initial recognition.

• Full lifetime expected credit loss-es. This measurement is required If the credit risk has increased sig-nificantly since recognition and the resulting credit quality is not con-sidered to be low credit risk. Entities can elect for an accounting policy of always recognising full lifetime expected losses for contract assets, trade receivables, and lease receiv-ables. When measuring expected credit losses, an entity should con-sider the probability-weighted out-come, the time value of money and information that is available without undue cost or effort.

IFRS 9 introduces a reformed model for hedge accounting with enhanced disclosures about risk management activity. Under IFRS 9, a hedging relationship qualifies for hedge accounting only if all of the following criteria are met:

• The hedging relationship consists only of eligible hedging instru-ments and eligible hedged items.

• At the inception of the hedging relationship there is formal desig-nation and documentation of the hedging relationship and the en-tity’s risk management objective and strategy for undertaking the hedge.

• The hedging relationship meets all of the hedge effectiveness require-ments

In order to qualify for hedge ac-counting, the hedge relationship must meet the effectiveness criteria at the beginning of each hedged period:

• There is an economic relationship between the hedged item and the hedging instrument.

• The effect of credit risk does not dominate the value changes that result from that economic rela-tionship.

• The hedge ratio of the hedging re-lationship is the same as that actu-ally used in the economic hedge

IFRS 9 will affect all sectors though the introduction of an expected loss model for loan loss provi-sioning, but will impact mostly on banks. IFRS 9 should give investors better insight into the credit quali-ty of all financial assets. However, putting the new requirements into practice by the effective date will be quite a challenge.

Source;First published by ACCA on 1st February 2018

IFRS 9 includes a new measurement category whereby financial assets are measured at Fair Value Through Other Comprehensive Income (FVTOCI). This category is used when financial assets are held in a business model whose objective is both collecting contractual cash flows and selling financial assets.


11THE iCPAR JOURNAL

iCPAR released the 11th pro-fessional examinations results of Certified Public Accountant

(CPA) and Certified Accounting Technician (CAT) conducted in December 2017. The 11th iCPAR examination sitting was held from November 27th to December 1st 2017 in two examination centers: Kigali Independent University and University of Rwanda, Huye cam-pus.

The total number of candidates who sat for professional exams in December 2017 was 1,357 subdi-vided into 925 candidates for CPA examinations and 432 candidates

Release of December 2017 examination results

Updates on the upcoming new CAT qualification

who sat for CAT examinations. The overall pass rates for CAT and CPA increased by 15% compared to June 2017 sitting. The pass rates were 57% CAT and 44% CPA in December, 2017 compared to 38% CAT and 33% CPA in June 2017. In December 2017, 20 stu-dents completed CPA qualification and 9 students completed CAT qualification. iCPAR has so far pro-duced 39 CPAs and 41 CATs. With that composition, 2 are females (5%), 32 are Males (95%) and 17 are Females (41%) while 24 are Males (59%) respectively. It’s the first time the institute has produced

a big number of finalists since its inception. Congratulations to all students that made it!

In line with iCPAR 5 year strategic plan, we shall work together with all stakeholders to create a critical mass of qualified professional ac-countants required in Rwanda. The Institute is engaging with higher learning institutions and Techni-cal and Vocational Education and Training (TVET) institutions togeth-er with other relevant stakeholders to increase the number of students whilst strengthening the quality of learning.

iCPAR in collaboration with ACCA is revamping the CAT qualification, the process is in its

final stages and it is anticipated to be launched in July, 2018. Upon completion, the new competency based CAT will have three levels which incorporates Public Finan-cial Management (PFM) compo-nents. This approach was adopted as a response to market demand for CAT competency framework to cover all market needs at a techni-

cian level.

Upon completion of CAT review, the CPA (Certified Public Accoun-tants) qualification review will as

well start and the same approach will be used to maintain consisten-cy of offering demand driven quali-fications which are locally relevant and internationally recognized.


12 JournalThe iCPAR

In line with the institute’s bylaws regarding Continuing Profession-al Education, the new CPD Pol-

icy was approved by the Govern-ing Council on 26 January 2018. The New CPD Policy stipulates that members of the Institute shall be required to, at the end of each year, furnish the Institute with in-formation on their CPD activities for each year, not later than three months after the end of that year.

CPD hours shall be assessed on a three year rolling basis as per the IFAC Education Standard No. 7. A total of 120 hours (60 structured and 60 unstructured) shall at a minimum be accumulated over the three-year period. It continues to elaborate that, in the event that the member fails to comply with the laid down regulations concerning Continuing Professional Develop-ment requirements, existing at the time, they shall be required to en-sure such compliance is achieved in the ensuing calendar year.

All members of the Institute irre-spective of category of member-ship must attain the minimum CPD hours set by the Governing Coun-cil. A member who fails to com-ply with these provisions shall be deemed guilty of professional mis-conduct as prescribed by the code of ethics and Accountants Law No. 11/2008 in article 43 and shall be liable to disciplinary action.

This new Policy applies to all CPA

New CPD policy to be effective 1st July 2018

and CAT; follows the combined /mixed approach; requires CPD declaration annually; requires sub-mission of evidence records for monitoring; calls for sanctions for non-compliance; provides support and guidance; and complies with IFAC’s IES 7 and IES 8.

In compliance with IES 8, Profes-sional Competence for Engage-ment Partners Responsible for Au-dits of Financial Statements, which appears to also be of interest to employers, regulators, government authorities, educational organiza-tions, and any other stakeholders who support the learning and de-velopment of professional accoun-

tants – the institute will organize a two-day mandatory workshop for practitioners and voluntarily for potential practitioners on 29 to 30 May, 2018 as an opportunity and support to them and to ensure that they maintain competence in their specialist areas of practice in a bid to meet the learning outcomes of IES 8. This requirement is mainly due to the public interest nature of their role and the need to ensure that outstanding practice – main-ly in regard to International Stan-dard on Quality Control 1 (ISQC 1) compliance, is demonstrated, thereby enhancing public trust and confidence of the accountancy profession in Rwanda.


13THE iCPAR JOURNAL

Dear Reader

I feel privileged and honored to share with you our valued reader about KIM University. KIM Uni-versity is a decade old institution which traces its origins to a 2005 decision by the Board of Directors that transformed the Internation-al College of Accountancy and Management (ICAM) into a degree awarding Institution. This gave birth to Kigali Institute of Manage-ment (KIM). At the beginning of 2016 KIM transformed itself into KIM University (KIMU), an institu-tion of higher learning accredited by the Higher Education Council as a degree awarding institution in Rwanda.

The core objective of the institu-tion is to deliver employable grad-uates with ability to apply knowl-edge for self, local and national development. In a bid to fulfill this objective, KIM University collabo-rates with professional Bodies such as ICPAR, KASNEB, ACCA (UK), IIA-USA, ICPAU, KISM, HRMPEB, OTHM-UK and CIPS (UK) among others.

YOUR gATEWAY TO ThE hEART oF MAnY oRgAnISAtIonS

KIM University provides courses that are popular for students look-ing to move directly into a profes-

sional career as well as those whose ambitions lie in broader Computer Science as well as Business Man-agement disciplines. Through the acquisition of comprehensive qualitative, computational and an-alytical skills, our student is well positioned and qualified to contin-ue into specialized and profession-al qualifications or to take the first steps in their life-long careers.

goLD StAnDARD tEACHIng AnD tHInkIng

Students at KIMU learn about the role and operation of wide range of course contexts, informed by con-temporary thinking and research in their respective disciplines. Many of our lecturers have exten-sive industry expe-rience which they draw on through struc-tured courses that include lectures, tutorials, essays and practical assignments.

WhY STUDY AT KIM UNIVERSITY:

We mentor our students and en-courage a culture of excellence in the undergraduate and graduate academic pro-grams as well as profes-sional studies. Through this culture of ambition, the

majority of them aim at getting a bachelor’s degree and a relevant professional qualification in their first three years of study at KIMU.

KIMU offers an opportunity for a double qualification combining an honors degree with a professional course. The double qualification makes our graduates more com-petitive on the labor market. KIMU also offers merit scholarships for enrolled students to pursue studies towards professional qualification.

KIM University; One of the tuition providers of CPA and CAT Rwanda


14 JournalThe iCPAR

PRoFESSIonAL PRogRAMMES oF StUDY SHoRt CERtIFICAtE CoURSES

�� Certified Public Accountant (CPA) ICPAR

�� Certified Accounting Technicians (CAT) ICPAR

�� Accounting Technicians Diploma (ATD) KASNEB

�� Certified Public Accountant (CPA) KASNEB

�� Human Resource Management Professional

�� The Certified Associate in Project Management (CAPM)

�� Project Management Professional (PMP) Certification

�� Certified Procurement & Supply Professional of Kenya (CPSP-K)

�� Associate in Procurement & Supply of Kenya (APS-K)

�� Professional Certificate in Procurement & Supplies (CIPS-UK)

�� Diploma in Insurance

�� Craft Course in Insurance (CCI)

�� Certificate of Proficiency (COP)

�� Certified Internal Auditor certification (CIA) USA

�� Association of Chartered Certified Accountant (ACCA-UK)

�� Foundations in Accountancy (FIA-UK)

�� Chartered Institute of Purchasing and Supply (CIPS-UK)

�� Certified Investment and Financial Analyst (CIFA)

�� Cisco Certified Network Professional (CCNP)

�� Cisco Certified Network Associate (CCNA)

�� Cisco Certified Network Associate-Security (CCNA-Security)

�� Information Technology Essentials (CCENT)

�� Linux Essential Level (LPI 1 &2)

�� Computer Graphics & Animation

�� Website Development

�� Certificate in Computer Applications

�� Computer Repairs and Maintenance

�� Certificate in Book Keeping

�� Cost and Management Accounting

�� Computerized Accounting Packages: Quick Books, Sage, Tally, …

�� Data Analysis packages: SPSS, SATA, TORA, EPI Info

�� Sales and Marketing Management

�� Taxation administration and Compliance in Rwanda

�� Customer Service and Sales Management

�� Human Resource Planning and Management

�� Logistics and Supplies Management

�� Business Administration & Office Management

�� Strategic Plan Development

�� Entrepreneurship & Leadership skills

�� Retirement Planning

JANUARY - MARCH 2018

15THE iCPAR JOURNAL

MAStERS PRogRAMS MAStERS DEgREE SPECIALIzAtIonS

Master’s in Business Administration (MBA) �� Finance and Accounting

�� Strategic Management

�� Logistics & Supply Chain Management

�� Human Resource Management

�� Marketing

�� Project Management

UnDERgRADUAtE PRogRAMMES UnDERgRADUAtE DEgREE SPECIALIzAtIonS

Bachelor of Business Management (BBM) �� Accounting

�� Finance and Banking

�� Procurement and Logistics Management

Bachelor of Science in Economics �� Health Economics

�� Labor and demography

�� Financial Economics

�� Environmental Economics

Bachelor of Science in Computer Science �� Information Technology

�� Information systems

�� Computer science

Bachelor of Science in logistics and Supply Chain Management

�� Logistics and Supply Chain Management

JOIN KIMU NOW AND ThEREAFTER YOUR LIFE WILL CHAngE FoR tHE BEttER

�� Highly qualified, experienced, skilled and competent facilitators

�� Flexible mode of study (Day, Evening and Weekend)

�� Distance learning

�� Computer labs with high speed internet

�� Job placement and career guidance

�� Life skills training

�� Spacious class rooms

�� High pass rate

ContACtS:

KK 3 Rd – KIGALI, RWANDATel: +250 788 865 088

Email: [email protected]: www.kimuniversity.ac.rw

http://kimuniversity.ac.rw/


16 JournalThe iCPAR

If you want to be and remain relevant in the business and finance world, it is critical that you attain Professional Accounting Qualifications- Kajungu Clode

At just 25 years of age, Kajungu Clode is a CPA finalist. Kajungu joined the

University of Kigali in 2014 with the aim of attaining a Bachelors of Business Administration. One year into the BBA course, his lecturers had noticed his prowess with numbers and urged him to pursue CPA qualification in addition to the BBA course.

In 2015 Kajungu continued to perform well and his grades were noticed by the University of Kigali administration which offered to sponsor him if he chose to take up Professional Accountancy Course. With continued encouragement from his lecturers, Kajungu jumped to the offer and enrolled for the CPA program in 2016. Motivated to succeed, he immediately begun preparing for and passed his exams in only four sittings, that is exactly two years which is not an easy feat.

Kajungu is very ambitious. As a beginning, he wants to become a member iCPAR, pursue his continuous professional development (CPD) sessions in

Q&AWITH

CPA FInALISt kAjUngU CLoDE

I encourage anyone who envisions their future in accounting, auditing, finance and generally the business arena to take up professional accounting courses if they intend to succeed. The CPA qualifications have been truly an eye opener for me. It would indeed do them a lot of good.

kAjUngU CLoDE


17THE iCPAR JOURNAL

a bid to remaining relevant and innovative in this uncertain and dynamic world of business.

Kajungu worked as an intern at University of Kigali, Office of Vice Chancellor while still studying for his CPA qualifications. Now that he has completed his professional qualification, the university plans to retain him as its internal auditor. Meanwhile, Kajungu awaits to graduate this year after completing his Bachelors of Business Administration course. He shared his story with Jean Marie Vianney Muhire, the director of Education Development Services at iCPAR. Below are the excerpts

JMV MUhIRE: tELL US ABoUt YOUR JOURNEY TOWARDS AttAInIng YoUR CPA qUALIFICAtIonS?

kAjUngU: I think it is one of the fascinating experiences of my life. When I joined the University of Kigali for my BBA program, I had not realized the importance of professional qualification courses. After my first year, with heavy encouragement from my lectures, it downed on me that I needed to enroll for a professional qualification. Luckily, I got sponsorship from the University and I decided to give it my all. I enrolled in 2016 and wanted to

do eight modules. I gave myself a target of two years to complete the CPA qualification. My focus was the end results. I was a bit obsessed.

JMV MUhIRE: YoU jUSt QUALIFIED AS A CPA hOW Do YoU FEEL AFtER ALL tHE hARD WORK YOU PUT IN?

kAjUngU: I am excited and ready to venture into the real world of professional accountants. I am looking forward to learning from more experienced professionals and translate theory into practice. Hard work is a priority for me.

JMV MUhIRE: WhERE DO YOU SEE YoURSELF In tHE nExt FIVE YEARS?

kAjUngU: To be quite honest, I am an ambitious individual. At the moment I am focusing on attaining enough experience in the profession. I would like to take on managerial responsibilities in the near future. Being a Chief Financial Officer would be a great achievement.

JMV MUhIRE: WhAT IS YOUR ADVICE TO OThERS WhO ARE YEt to StARt PRoFESSIonAL qUALIFICAtIonS?

kAjUngU: I encourage anyone who envisions their future in accounting, auditing, finance and generally the business arena to take up professional accounting courses if they intend to succeed. The CPA qualification has been truly an eye opener for me. It would indeed do them a lot of good.

CPA Finalist - Kajungu Clode


18 JournalThe iCPAR

Accountants in history

1. LUCA PACIoLI: tHE FAtHER oF ACCoUntIng

Italian mathematician Luca Pacioli published the first book about double-entry bookkeeping on 10 Novem-ber 1494 - and it is in his honour that International Accountants Day was started. His book, Summa de Arithmetica, Geometria, Proportioni et Proportional-ita, described keeping accounts for assets, liabilities, capital, income, and expenses, much like the systems we use today in balance sheets and income state-ments.

He advocated the use of ledgers and is known for saying a person should not go to sleep at night until their debits and credits are equal.

2. ThE WORLD’S FIRST ACCOUNTANTS ORIgINAT-ED In AnCIEnt MESoPotAMIA:

Accounting is thousands of years old and can be traced as far back as ancient Mesopotamia.

The world’s first accountants worked for the temples, keeping track of taxes paid in sheep and agricultural produce for the religious authorities of the day. In the process, many historians believe they invented the practice of writing in order to keep receipts. Prior to this development in record keeping, token systems were often used to document the exchange of goods and services. Early forms of bookkeeping have also been found in ancient Iran.

3. MANY ACCOUNTINg TERMS hAVE LATIN RootS:

Accounting may be called ‘the language of business’, but did you know that many well-known accounting terms are derived from Latin? The word ‘debit’ means ‘he owes’ in Latin, while ‘credit’ means ‘he trusts’. The word ‘accountant’ is derived from the Latin ‘compu-tare’, which means ‘count’.

4. ICAS IS tHE oLDESt PRoFESSIonAL BoDY oF ChARTERED ACCOUNTANTS IN ThE WORLD:

ICAS was founded in 1854 by Royal Charter, making it the oldest professional body of chartered accoun-tants. ICAS originated from the Edinburgh Society of Accountants, the Glasgow Institute of Accountants and Actuaries, and the Aberdeen Society of Accoun-tants. James Brown, James McClelland and John Smith were the first presidents of the three institutes. Robert Gordon Simpson CA was named as the first president of ICAS in 1951.

5. BUBBLEgUM WAS INVENTED BY AN ACCOUN-tAnt:

US accountant Walter Diemer worked for the Fleer Corporation in the 1920s. But his big claim to fame is that he invented bubble gum in his spare time!

Luca Pacioli

Source;First published in CA today on 10th November 2017

https://www.icas.com/ca-today-news/accountants-who-made-their-mark-on-history





19THE iCPAR JOURNAL

List of accounting firms licenced by iCPAR as at 31 January 2018

FIRM nAMES PARtnERS tELEPHonE EMAILS

ABC Consultants Ltd Wenceslaus Ndabagayire Ndiyo +250788517093 [email protected]

Anil R T& Co Ltd Anil Gupta +250788307473 [email protected]

Baker Tilly Meralis CPA Ltd Madhav S. Bhandari +250788407373 [email protected]

BDO EA Rwanda Ltd Emmanuel Habineza +250788304070 [email protected]

BIKO & Associates Ltd Francois Bikolimana +250785828020 [email protected]

BM & Associates Ltd Boniface N. Mutua +250788713619 [email protected]

Deloitte Rwanda Ltd David Waweru +250784442958 [email protected]

DMU & Partners Ltd Deogratias Musonera +250785354961 [email protected]

EDES & Associates Consultants Ltd Emmanuel Muwazi +250788312335 emmanuel.muwazi@

edesassociates.com

Ernst & Young Rwanda Ltd Allan K. Gichuhi +250788387085 [email protected]

Financial Advisory Services & Training Ltd Lindsay Hodgson +250788302895 [email protected]

FJ Consultant Ltd Julian Nabawanuka +250783098905 [email protected]

GK CPA Ltd Wilfred Gichia Kiunyu +250783353795 [email protected]

GNI CPA Ltd Ibrahim N. Gatimu +250782117222 [email protected]

GPO Partners RWANDA Ltd Patrick Gashagaza +250788300832 [email protected]

IDENT CPA Ltd Ian Dent +250786978988 [email protected]

ITAU Auditors Ltd Vincent O. Nyauma +250788754870 [email protected]

JDD & Associates Ltd Dusengimana Jean Damascene +250788621378 [email protected]

JNN CPA Ltd Job Ngatho Njoroge +250782274442 [email protected]

mailto:[email protected]





















20 JournalThe iCPAR

J.K Partners Ltd Kizza Koperi Mutwalume Joseph +250786765422 [email protected]

KMD Partners Limited Solomon Kalibwanyi Musoke +250782173513 [email protected]

KPMG Rwanda Stephen Ineget +250252579792 [email protected]

Maurice Associates Ltd Maurice Kinyanjui Njaoh +250788307472 [email protected]

Mazars Rwanda Joshua Ouma Odhuno +250736595830 [email protected]

MIT Partners Ltd Ivan Mbabazi +250788307642 [email protected]

M.N & Associates CPA Michael M. Ndungu +250788853063 [email protected]

MOM Associates Olive Mukankwaya +250783373382 [email protected]

Nambiar Grant Thornton CPA Ltd Raghavan Nambiar +250788307654 [email protected]

OA & Associates CPA Otieno H.Ayany +250788418001 [email protected]

OGC CPA Ltd Charles G. Otieno +250788987798 [email protected]

ON & Associates Ltd Ntawuyirushintege Olivier +250788303061 [email protected]

PEWMU Associates Ltd Muchiri Waititu +250785835735 [email protected]

PKF Rwanda Ltd Gurmit Singh Santokh +250788300428 [email protected]

PwC Rwanda Ltd Florence Wangu Gatome +250785704449 [email protected]

RAJ, Ashiwal & Mehta(RAM) Associates Ltd Niranjan Rajagopalan +250784445844 [email protected]

RSK Associates Moses Mugadde +250786653828 [email protected]

RUMA CPA Peter Rutaremara +250788301220 [email protected]

SECAF Ltd Vedaste Habimana +250788892514 [email protected]

Sharma & Vaswani Associates Ltd Abhinav Sharma +250738316914 [email protected]

SRC Rwanda Ltd Robert Muriithi Muthike +250782637247 [email protected]

Susan Irungu & Associates Ltd Susan Wanjiku Irungu +250737821956 [email protected]

UT CPA Ltd Therese Uwamariya +250788303980 [email protected]

Wamira and Associates Ltd Francis Ojwangi Wamira +250788381007 [email protected]

FIRM nAMES PARtnERS tELEPHonE EMAILS



















mailto: [email protected]







21THE iCPAR JOURNAL

no DAtE EVENT CPD HRS

VENUE PRICE

1 26 January 2018 The 7th Annual Tax Assessment Forum

7 Senera Hotel, Kigali

65,000 / 85,000 RwfMembers/Non-Members

2 09 February 2018 Accounting and Finance aspects for Non Finance Managers

7 Hotel des mille Collines


3 23 February 2018 Corporate Governance Workshop

7 Marriot Hotel 65,000 / 85,000 RwfMembers/Non-Members

4 14 - 16 March 2018 Training of Trainers (ToT) on Board Leadership

20 Kampala 195,000 / 225,000 RwfMembers/Non-Members

5 26 - 28 April 2018 1st ICPAR Economic Forum 20 Golden Tulip 420,000 / 450,000 RwfMembers/Non-Members

6 29 - 30 May 2018 Practitioners /audit firms’ development workshop

14 Marriot Hotel 180,000 Rwf

7 21 - 22 June 2018 ISA’s update and Code of Ethics workshop



8 22 June 2018 Evening Talk – Budget and other current matters


50,000 Rwf

9 12 -13 July 2018 Tax and Financial Reporting workshop for SME’s and NGO’s.



10 26 - 27 August 2018 Financial Services and Reporting workshop



11 13 - 14 September 2018

Public Financial Management workshop



12 04 - 05 October 2018 Modern Age Customer service and Professional skills development

14 Marriot Hotel 140,000 / 170,000 RwfMembers/Non-Members

13 24 - 26 October 2018 The 7th iCPAR Annual Conference

20 Golden Tulip 420,000 / 450,000 Rwf Members/Non-Members

14 8 -9 November 2018 Internal Audit, Risk, Control & Assurance Conference



15 9 November CPA’s and Other Leaders Evening Talk


50,000 Rwf

16 14 December 2018 Evening talk – Practitioner’s Dinner

3 Marriot Hotel 50,000 Rwf

NOTE: Prices indicated are VAT exclusive. DISCLAIMER: The Secretariat reserves the right to amend this Schedule as it may deem appropriate.

2018 CPD Calendar


22 JournalThe iCPAR

Humour Crossword

Office location

How do you know if your son is going to be a CPA?

When you read him the story of Cinderella and get to the part where the pumpkin turns into a golden carriage, he asks, “Is that ordinary income, or a capital gain?”

You might be a tax accountant if ...

… you refer to your child as Deduction 214.

How do you know when an accountant is on vacation?

He doesn’t wear a tie and comes in after 8 a.m.

Dear stakeholder,

In a bid to serve you better and cater for future ex-pansion, from October 1, 2017 we relocated to new office located at the former BRD student loan office on KG 501 Street ,21 behind Career Center Building.

The Institute is the sole professional accountancy organization established by law No. 11/2008 of 6th May 2008 with a broad mandate to grow and regulate the accountancy profession

To build a strong and engaged professional accountancy organization that anticipates stakeholder expectations and acts in the public interest

OUR OffICE


ABOUT US

WhAT WE dO

VISION

MISSION

We regulate the accountancy profession; We preserve the integrity of the accounting profession; We promote the competence and the capacities of own members.We deliver accounting qualifications, programs and examinations.We promote compliance with professional standards

A strong, relevant and sustainable profession

Published by Institute of Certified Public Accountants of RwandaKG 501 St 21, behind Career Center BuildingP.o.Box: 3213 Kigali RwandaT: +250 784103930 F: +250 280103930 E: [email protected]

Copyright © iCPAR 2017. All rights reserved.Copyrights and all / or other intelectual property rights on all designs, graphics, logos, images, phots, texts, trade names, trademarks, etc in this publication are reserved. The reproduction, transmission or modification of any part of the contents of this publication is strictly prohibited.

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