The IFAC Small and Medium Practices (SMP) Committee submitted this comment letter to the International Ethics Standards Board for Accountants in response to its Exposure Draft, Proposed Revisions to Clarify the Applicability of Provisions in Part C of the Extant Code to Professional Accountants in Public Practice.

Following on the fundamental reorientation the IFAC Professional Accountants in Business Committee made to its meetings and communications in 2016, this report shares the knowledge, ideas, and experience of the committee on developing a future-ready profession.

The main themes in the report, and in the meeting it flows from, are:

Following on the fundamental reorientation of the IFAC Professional Accountants in Business Committee made to its meetings and communications in 2016, the committee has issued a report that shares the knowledge, ideas, and experience of the committee on developing a future-ready profession.

The report is designed to be accessible, with improved navigation, summaries that enable a fast read; and clearly identified future actions and recommendations.

The main themes in the report, and in the meeting it flows from, are:

• digital disruption and rapid cognitive business development;
• the continued evolution of the profiles of finance leadership and accountants in business;
• effective risk management;
• how integrated reporting can lead to better reporting outcomes; and
• how the new media landscape is changing the way we communicate.

The Committee, made up of an international group of thought leaders from IFAC member organizations, met in New York March 29-30 for its bi-annual meeting, chaired by Charles Tilley, Executive Chairman of the CGMA Research Foundation. Insights from the meeting will help raise awareness of emerging trends, challenges, and opportunities affecting the accountancy profession and accountants in business across the globe, and will help the global profession coordinate activities. 

The 122^nd ASEAN Federation of Accountants (AFA) Council meeting in Singapore in June 2016 included presentations by IFAC staff on a variety of membership matters. Staff provided an update on the IFAC Member Compliance Program, including the approved IFAC Member Compliance Program Strategy, 2016-2018, the online Member Organization and Country Profiles, and the new enhanced enforcement framework.

Attendees included 15 members of AFA as well as Christopher Fabling, Senior Financial Management Specialist with the World Bank, who provided an update on current World Bank initiatives in the ASEAN region, and Dan Montgomery, former Deputy Chairman of the International Auditing and Assurance Standards Board, who addressed the New Auditor’s Report.

While in Singapore, IFAC also met with several member organizations to discuss elements of the Compliance Program and other professional accountancy organizations in the region that are interested in membership.

Compiled for the Professional Accountants in Business Committee meeting in March 2017, this presentation addresses tech trends and their impact, and disruption, of accountancy and the finance function.

The presentation is both an overview of key topics and a collection of resources.

This presentation is available to IFAC member organization to share and/or customize. Please contact stathisgould@ifac.org to request use.

The IFAC Small and Medium Practices Committee welcomes the International Auditing and Assurance Standards Board's agreed-upon procedures Discussion Paper. It strongly believes that the revision of International Standard on Related Services 4400, Engagements to Perform Agreed-Upon Procedures Regarding Financial Information, should be a high priority for the board.

IFAC's Financial Statements are prepared in accordance with International Public Sector Accounting Standards^® (IPSAS^®) and include an independent auditor’s report.

Nearly 60% of Caribbean countries included in a recent survey have already adopted International Public Sector Accounting Standards (IPSAS) or national accounting standards based on IPSAS, and the remaining 40% are at various stages of the implementation process according to Accrual Practices and Reform Expectations in the Caribbean, a study conducted by the International Federation of Accountants (IFAC) and the Institute of Chartered Accountants of the Caribbean (ICAC).

This study, the result of an initial survey during the 2016 Strengthening Public Financial Reporting and Accountability conference in the Bahamas, examined the current status of public financial management (PFM) reforms in the Caribbean. It also analyzed the individual countries to assess: (a) the current and future accounting basis and reporting standards for public financial statements; (b) the current and future recognition basis for budgeting; and (c) the current and future external audit requirements for public financial statements.

“Study participants identified areas where stakeholder groups could partner to step up knowledge sharing and collaboration between governments, the accountancy profession, and other stakeholders in the Caribbean,” said Jasmine Davis, ICAC President. “These partnerships may give rise to improved public financial reporting, better informed public decision making, better quality of public services, better management of assets and liabilities, better public financial management, increased accountability, and, ultimately, enhanced trust of citizens in government.”

The study showed that most Caribbean countries are in the process of reforming and modernizing their financial reporting, budgeting, and auditing practices.

• After the reforms have been implemented, the regional balance will move from mostly cash-based accounting to nearly two-thirds using accrual-based accounting. In addition, 60% of those surveyed are expected to have implemented IPSAS while the other 40% will be using national standards based on IPSAS.
• For preparation of the budget, however, most central governments in the Caribbean (60%) still use the cash basis, with only Belize transitioning to accrual.
• Almost all Caribbean countries included in this study already use internationally recognized auditing standards (International Standards on Auditing or International Standards of Supreme Audit Institutions) or national standards based on international standards.

“IFAC has been a driver of change in the Caribbean to modernization accounting systems and move toward more efficient and transparent public financial management. In collaboration with regional and national professional accountancy organizations in the Caribbean, IFAC works to promote conferences, train, and develop cooperation agreements,” said Fayez Choudhury, IFAC CEO. ”The study also suggests that most countries in the Caribbean recognize the importance of high-quality, reliable, and transparent public financial accounting and reporting arrangements and are gradually implementing reforms to achieve these desired outcomes. IFAC, through its Accountability. Now. initiative, together with the ICAC and the various Caribbean national professional accountancy organizations, continues to support this transition.”

A digital version of the report can be found at on the IFAC and ICAC websites.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

About ICAC
Since its establishment in 1988, the Institute of Chartered Accountants of the Caribbean has provided a forum for the advancement of the accountancy profession in the Caribbean. Today, with a network of approximately 3,000 professionals, the ICAC is the leading regional organization dedicated to advancing the interest of accountants and professionals in the finance industry within the Caribbean through the promotion of internationally acceptable standards and best practices, thought leadership, research and continuing professional development. In 2006, the ICAC was recognized as an “Acknowledged Regional Grouping” of IFAC.