Bahrain economy blessed with steady growth: Official

Bahrain Chapter of the Institute of Chartered Accountants of India (BCICAI)’s flagship event under the theme CA’s- Fostering growth and good governance’ will be held over two days, October 30 and 31, in Manama. The Chairperson of BCICAI, CA Kapil Batra, has a chat with DT News regarding the event and his views about the profession, the challenges and the future. Excerpts: 

Can you explain the emphasis of the theme ‘CA’s- Fostering growth and good governance’?

The purpose of this event is to reinforce our belief in the core values of the human kind and CA professionals, which have stood all tests of time. There is no business or institution in the world where the governing bodies do not face an ethical dilemma to choose between quick success and sustainable reputation. Companies may successfully run for ages with either option chosen but peace of mind and prosperity would coexist only when the decisions are taken with honesty and integrity towards the ecosystem at large. All the guest speakers invited to this event are masters of their chosen field of profession and I am sure that the audience would be spellbound.

This explains the theme and purpose of this event.

What role BCICAI plays in Bahrain? What are the plans ahead for the year?

BCICAI is an overseas chapter of the parent institution in India and is the largest body of the finance professionals in the Kingdom of Bahrain. We come under the umbrella of Bahrain Accountants Association. The chapter works for the professional advancement of its members and also contributes towards the less privileged human friends through contribution in various forms as the resources allow.

This entire term we will be holding educational seminar on varied relevant topics. This include Anti Money Laundering; Forex and Treasury management; small scale private equity investment risks; Fraud prevention and Information Technology.

Soft skills like emotional intelligence communication skills along with many outdoor sport activities for the BCICAI members and their families, including a CA family day, which is one of the much sought after programmes by the children of the members, will be organised.

How do you view the accounting standards in Bahrain? Is there any change required?

Bahrain has adopted International Financial Reporting Standards (IFRS) and as of today, almost all of the premium accounting bodies of the world are in the process of converging with IFRS to form a uniformly applicable norm across the globe. IFRS is a principle based accounting standard, which allows the users to comply or explain the rationale of deviation because it is a fact that one size fits all approach cannot be taken in the field like accounting.

Lots of search and research goes into the evolution process of the IFRS with a common goal to optimise the reporting of the financial health of a company to the True and Fair view. Change is constant and the standards undergo changes after every few years to adapt the emerging trends and issues.  

What do you think of the current status of the Bahrain economy? What new trends are being observed? As CAs have a ringside view of the busi- ness, what could be done better in the Kingdom?

If you observe in the recent years the general growth rate of Bahrain economy has been four to five per cent, which is a real good rate comparing to the global economic conditions. It is commendable when Bahrain is holding good ground on economy front. However, sustained reduction in oil price is certainly a big factor, which would affect the available resources of the country.

To suggest what can be done better, I may not have complete information on all the initiatives taken by the authorities. But to relate my response to our theme, I would request for stricter implementation of the governance rules and legal provisions so that it gradually becomes a habit of all to respect the good norms of resident or citizen.