YOUR VIEWS SHARE YOUR VIEWS Email: accountant@icpak.com Address: ICPAK, CPA Centre, Thika Road P. O. Box 59963 - 00200 Nairobi Kenya 2 JULY - AUGUST <strong>2017</strong>
EDITORIAL Dear Reader, In our cover story, we discuss trade secrets. Secrecy has been a part of trade for thousands of years; People who depend on making their money by selling something or providing a service which other people are unable to make or provide, defend their turf by raising barriers to entry. Trade secrecy is legal and protects relationships of trust. Secrecy allowed a region in China to profit for centuries by harvesting silkworms to produce silk – something that could be done in Kenya; not just secret formulas and designs, but even simple facts, such as the features that might be introduced in the next iPhone, or which country a business intends to go into next. In Kenya, there are eleven laws related to intellectual property, seven sets of regulations, three guidelines and fifty four treaties. Enforcing business secrets has nothing to do with a lack of transparency in government. Although it may seem paradoxical, trade secret laws can enable and encourage technology transfer, because these laws provide a commercially reasonable way to disseminate information. Although some aspects of secrecy laws, such as data exclusivity for drug companies can be controversial, there is a general agreement that confidential disclosure is beneficial in a modern economy. Meanwhile, an accounting transition is always a tricky affair. <strong>The</strong> commendable difference is that government has instituted elaborate plans to learn from experienced industry practitioners that have been contracted to assist in compliance with International Public Sector Accounting Standards requirements. Arguably, government sector accounts has many concepts and technical issues that obtaining a fair presentation of the financial affairs is more complex than it is in the private sector, hence this important effort appears complex and costly to effect. A common problem that has faced the early adopters is that government activities focus on macroeconomic approach and thus its management practices and data reporting methods are significantly different from the private sector. Accrual based financial reporting gives broader information, which cash accounting does not. It also gives a wider than ordinary view of the liabilities compared to the assets according to this writer. Find out more under Financial Reporting and Assurance; it is titled- Pushing the boundaries of Government sector financial reporting. In Business Practice and Development, we feature- Emerging Trends in Accounting. <strong>The</strong> author says that the Accountancy profession has contributed to the development and growth of ancient civilizations. From the Babylonians to the Egyptians, the need for records has satisfied the need to keep day to day affairs well structured, managed and planned for. <strong>The</strong> development of accounting has over the years since then, developed to a necessity for modern day trade, governance and every day operations. Owing to how integral the service is, it is no wonder that there have been remarkable developments in that space. Scholarly articles, research papers, development of courses and other avenues have been utilized to further advance this field. In line with this development, Accounting has also benefited from the advancements in other fields as well. <strong>The</strong> Enron Scandal brought to light the evils of poor accounting practices and the need for greater accountability and transparency in the operations of business. While the move for sustainability has lasted longer than this, the need for business to take up more responsibility has been greater appreciated since. In the Governance segment, the Infrastructural Problems in Kenya’s Public Universities are explored; the author wonders whether Public Private Partnerships (PPP) could be the solution. <strong>The</strong> writer further clarifies that Public Private Partnerships involves a contract between the public and private sector. It describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. <strong>The</strong> worldwide experience has shown that Public Private Partnerships, if properly formulated, can provide a variety of benefits to the government. For example: A PPP can increase the value for money spent on infrastructure services by providing more-efficient, lower-cost, and reliable services; a PPP helps keep public sector budgets, and especially budget deficiencies, down; a PPP allows the public sector to avoid up-front capital costs and reduce public sector administration costs; the project life-cycle costs and project delivery time can be reduced by using a PPP. It can also improve the quality and efficiency of infrastructure services and facilitate innovation in infrastructure development, among other things. Finally, as the global work force is growing both intellectually and in size, the Kenyan work force is not left behind. <strong>The</strong> average Kenyan employee is becoming more hardworking and extremely aggressive. <strong>The</strong>re is an increase in both healthy and unhealthy competition in the workplace; sometimes making the environment very hostile, especially for the victims. Bullying and mobbing are just some of the work place evils quickly taking root in our Kenyan work places. We feature this rather disturbing state of affairs in the workplace section. We have also incorporated all your regular features, including health, travel, institute news and pen off in this fascinating Journal. Enjoy! Mbugua Njoroge Editor JULY - AUGUST <strong>2017</strong> 3
Change language