The International Federation of Accountants^® (IFAC^®) commends the Organisation for Economic Co-operation and Development (OECD) and Group of Twenty (G-20) on delivering a final package of measures in the Base Erosion and Profit Shifting (BEPS) Project.

“The BEPS Project presents a rare opportunity to cooperatively make international taxation work genuinely better in today’s globalized, digital economies,” said Russell Guthrie, Executive Director for IFAC. “Its success or failure will likely hinge on the effectiveness of international collaboration, without which we may end up with more complexities, divergences, and gaps than when we started,” said Mr. Guthrie.

IFAC calls for cooperation and inclusiveness among governments as the BEPS measures are implemented and negotiation proceeds on a multilateral taxation instrument amending over 3,000 bilateral treaties. This strong appeal is reflected in IFAC’s impending recommendations to the 2015 G-20 Leader’s Summit in Antalya, Turkey, along with:

• A call for ongoing analysis of economic impacts; and
• The need for international agreement on a properly resourced dispute resolution mechanism.

The BEPS package emphasizes crucial objectives, including ensuring governments have the resources needed “to jump-start growth, tackle the effects of the global economic crisis and create more and better opportunities,” and restoring “the trust of ordinary people in the fairness of their tax systems.” IFAC believes this is not just a matter of how taxes are collected, but also about how that money is accounted for, managed, and spent by governments. Poor public sector financial management, accountability, and transparency remains a significant problem in many countries.

“The reality is this is not just a conversation about tax, it’s about globalization and a digital economy. A clear, robust conversation grounded in its full economic context is essential to achieving fair and meaningful outcomes, and promoting accountability and transparency across the global economy,” said Mr. Guthrie. “We must realize that BEPS is not a panacea— in a rapidly evolving world, there’s an ongoing need for tackling fundamental, forward-looking questions, research, and ongoing dialogue around taxation.”

Accountants, as advisors and intermediaries, were recognized by the OECD’s Forum on Tax Administration (consisting of Tax Commissioners from 45 countries) for their “vital role in all tax systems, helping taxpayers understand and comply with their tax obligations in an increasingly complex world.”

 “The OECD and G-20 have achieved consensus on many tough issues in a short time, and the global accountancy profession is committed to helping make the BEPS package work for governments, companies, and other taxpayers—furthering the extensive technical input provided throughout its development,” said Mr. Guthrie.

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. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing over 2.8 million accountants in public practice, education, government service, industry, and commerce.

The IFAC SMP Committee acknowledges that the IESBA Exposure Draft: Responding to Non-Compliance with Laws and Regulations is a sensitive and complex topic and commends the Ethics Board on the substantial amount of work and outreach that has been undertaken in moving this project forward. We generally consider that the revised framework has significantly improved.

Transparency and accountability require robust financial information.

Governments around the world are entrusted by their populations to manage their financial resources in a sensible and cost-effective way. They collect revenues, largely through taxation, and in return are expected to deliver a wide range of public services such as education, health, infrastructure and social transfers for the benefit of current and future generations.

Continuing its commitment to strengthen the accountancy profession and professional accountancy organizations (PAOs), the International Federation of Accountants^® (IFAC^®) today issued its annual Call for Expressions of Interest for organizations wishing to partner in these efforts.

In 2014, IFAC, the global organization for the accountancy profession, and the UK Department for International Development (DFID), which leads the UK’s work to end extreme poverty, entered into an agreement to strengthen PAOs in emerging economies. Under the agreement, DFID will provide £4.935 million over seven years to strengthen PAOs in at least 10 DFID focal countries to play a greater role in furthering economic development.

IFAC invites organizations to indicate their interest in providing PAO capacity-building services under this DFID-funded program. IFAC’s role is to facilitate, coordinate, and supervise projects to strengthen developing PAOs’ managerial, financial, and technical capacity so they can drive improvements in professional and ethical standards. Such projects ordinarily include peer-to-peer support by more established PAOs.

Expressions of Interest can be submitted online. Interested organizations need to demonstrate that they have the required qualifications and relevant experience to perform the capacity-building services. Based on information in the Expressions of Interest, IFAC will evaluate interested organizations and select eligible organizations for the database. In the future, eligible organizations may be invited to bid on specific projects. Further information is available by emailing development@ifac.org and in a questions & answers webpage.

The deadline for submission of Expressions of Interest is November 20, 2015.

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. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

About DFID
The Department for International Development (DFID) leads the UK’s work to end extreme poverty. We're ending the need for aid by creating jobs, unlocking the potential of girls and women and helping to save lives when humanitarian emergencies hit. For more information visit www.gov.uk/dfid.

The IFAC Member Compliance Program Strategy, 2016-2018 has been issued after consideration of the more than 70 responses received from a 60-day public consultation period and finalization with proper regard for the public interest. The Member Compliance Program and the Compliance Advisory Panel (CAP) were established by the IFAC Board more than ten years ago as part of IFAC’s commitment to support the growth of professional accountancy organizations and encourage member organizations to further the adoption and implementation of international standards.

The Program strategy reiterates the importance of its primary activities, which center on:

• Maintaining robust application and compliance processes;
• Gathering and sharing knowledge about the adoption of international standards and practices and fulfillment of the IFAC Statements of Membership Obligations (SMOs);
• Maintaining the SMOs as a global benchmark for the accountancy profession; and
• Developing assessment methodology, tools, and guidance to support the Program.

For 2016-2018, the Program’s strategy will place a greater focus on:

• Monitoring member organizations’ compliance with membership requirements, including the SMOs, to better understand challenges facing these organizations;
• Enhancing reporting on the status of adoption of international standards; and
• Identifying actions to address adoption and implementation challenges, including support for member organizations and national authorities.

The Program’s strategy is aligned with IFAC’s mission and strategy and benefits from the inputs received from member organizations and other stakeholders as part of IFAC’s strategic planning process. These activities fulfill the Program’s mandate and are expected to remain valid over the long term.

IFAC commends the Financial Services and Treasury Bureau (FSTB) of Hong Kong on issuing the consultation paper, Proposals to Improve Regulatory Regime for Listed Entity Auditors.

IFAC supports the PCAOB’s approach of innovation and seeking to enhance wide dialogue on audit quality. IFAC also raises several important matters for consideration and caution in the development, implementation and use of audit quality indicators.

The International Federation of Accountants^® (IFAC^®), the global organization for the accountancy profession, today released the Guide to Compilation Engagements. The Guide aims to help professional accountants in practice, especially those operating in small- and medium-sized practices (SMPs), in conducting compilation engagements in compliance with ISRS^TM 4410 (Revised), an International Standard on Related Services developed exclusively by the International Auditing and Assurance Standards Board^® (IAASB^®).

“The regulatory environment is changing. As a result, increasingly small- and medium-sized entities (SMEs) may now be able to choose from an array of assurance and related services to meet their needs,” said IFAC SMP Committee Chair Giancarlo Attolini. “Accounting practices, especially SMPs that typically serve SMEs, need to be prepared to help their clients navigate this choice, while being prepared to meet clients’ changing demands. The Guide can help practitioners increase their knowledge and understanding of compilation engagements, thus broadening their service offerings and strengthening their practices in this important area.”

Practitioners can use the Guide as an introduction to compilation engagements, to deepen their prior understanding and knowledge, as a day-to-day reference guide, or as the basis for training modules. The Guide includes practical guidance on the application of the requirements in the standard and “Consider Points,” which offer suggestions to facilitate efficiency and address areas where practitioners often encounter difficulties. Featuring illustrative examples alongside relevant extracts from the standard, the Guide also includes appendices with key checklists and forms that practitioners can use as is or modify to meet the requirements of their particular jurisdiction.

Visit SMP Publications & Resources for access to the Guide, which forms part of IFAC’s suite of implementation support and includes comprehensive Guides covering the implementation of the IAASB’s audit, quality control, and review standards: ISA^TM, ISQC^TM, and ISRE^TM 2400 (Revised), respectively. For access to additional implementation resources from IFAC and notable organizations from around the world, see the Global Knowledge Gateway, in particular, the areas of audit & assurance and ethics.

About the SMP Committee
The SMP Committee of the International Federation of Accountants (IFAC) represents the interests of professional accountants operating in small- and medium-sized practices (SMPs). The committee develops guidance and tools and works to ensure the needs of SMPs are considered by standard setters, regulators, and policy makers. The committee also speaks out on behalf of SMPs to raise awareness of their role and value, especially in supporting SMEs, and the importance of the small business sector overall.

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. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing over 2.8 million accountants in public practice, education, government service, industry, and commerce.

IFAC provides its views on the draft law on accounting and auditing in Cambodia. It recognizes the important role that the profession plays in strong economies and capital markets; in particular with respect to the key function auditing plays in the development and publication of high-quality financial reporting.

TheIFAC Professional Accountants in Business (PAIB) Committee sees the Exposure Draft from IESBA as a significant improvement over the original Exposure Draft (Proposed Changes to the Code of Ethics for Professional Accountants Addressing Responding to a Suspected Illegal Act) in August 2012 and believe it addresses many of the significant concerns we raised in our previous response.