The International Federation of Accountants (IFAC), the global organization for the accountancy profession, today issued Policy Position Paper 8, Enhancing Organizational Reporting, to emphasize the importance and usefulness of reporting broad-based information beyond that which is provided in traditional financial reporting.

Enhanced organizational reporting provides a more complete view of an organization’s position, performance, and longer term potential and sustainability, and is in the public interest. It provides important information for both internal and external stakeholders to support managing and directing operations, decision making, promoting transparency, and the discharge of accountability.

“Given the high volume of responses to the recently-issued Framework from the International Integrating Reporting Council, we feel this is an important and timely topic,” said Fayez Choudhury, IFAC CEO. “We recognize that there are many organizational reporting frameworks and regulations available and being developed, and it is important to examine the relationships between these frameworks and promote global consistency and convergence.”

The accountancy profession has a history of involvement in developing and improving reporting processes and controls, and identifying and reporting key financial and other information. IFAC believes that the accountancy profession has a key role to play in enhancing organizational reporting.

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 173 members and associates in 129 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

#   #   #

To stimulate a global debate on preparing accountants for finance leadership, IFAC, the global organization for the accountancy profession, today released a new Discussion Paper, The Role and Expectations of a CFO. The paper features five principles that highlight the changing expectations, scope, and mandate of the chief financial officer (CFO) and finance leadership roles and recommends actions professional accountancy organizations and employers can take to prepare professional accountants for career progression to finance leadership.

These principles and recommended actions raise awareness of the implications for the education, training, and development of professional accountants. The Discussion Paper will be used as a basis to engage professional accountancy organizations, employers, and other stakeholders to share and enhance approaches to preparing professional accountants for finance leadership.

The Discussion Paper is also important to the regulatory community, which strives for well-governed and managed organizations. The CFO is a critical part of a chain of actors—including the governing body, chief executive officer, audit committee, and auditor—that share responsibility for ensuring sustainable value creation, as well as relevant organizational reporting. The advantages that professional accountants’ training, expertise, and experience bring to the CFO role are not always recognized, especially professional accountants’ combination of ethical and technical mindsets with business acumen and organizational awareness.

“In these tough economic times, the objectivity and values of the professional accountant can be of enormous value to finance leadership positions in organizations in every economic sector,” said Roger Tabor, chair of IFAC’s Professional Accountants in Business (PAIB) Committee. “But professional accountants in finance leadership roles aren’t universal and, in some parts of the world, their numbers are declining. So it is more important than ever for the profession to develop outstanding professionals who are well equipped to work in business and government, and to take on finance leadership roles.”

“Working closely with employers to understand their needs and requirements helps the accountancy profession to deliver business-ready accountants,” according to Susanna Chiu, chair of the PAIB Committee’s Role, Domain, and Competency Advisory Group, president of the Hong Kong Institute of Certified Public Accountants, and director of Li & Fung Development (China) Ltd. “The education and training of professional accountants should incorporate broader managerial capabilities and skills. Professional accountancy organizations should foster a commitment to lifelong learning and become more innovative in how they engage and serve professional accountants in business.”

A panel of finance leaders from China and the PAIB Committee will debate the key requirements and expectations of finance leadership and highlight what professional accountants need to do to prepare for leadership roles at the Global PAIB Forum, hosted by the Chinese Institute of Certified Public Accountants in Beijing, China, on October 16, 2013. The Forum will facilitate discussion and encourage closer relationships between professional accountants, professional accountancy organizations, employers, and other stakeholders.

An At a Glance publication is also available to provide an overview of the Discussion Paper, key discussion questions, and additional details relating to this initiative.

How to Participate
IFAC will use the Discussion Paper in conjunction with outreach to initiate a global debate among professional accountancy organizations, professional accountants, and other stakeholders. Respondents can also submit their comments electronically through the IFAC website, using the “Submit a Comment” button on the Discussion Paper page.

About the PAIB Committee
The PAIB Committee serves IFAC member bodies and professional accountants worldwide who work in commerce, industry, financial services, education, and the public and the not-for-profit sectors. Its aim is to promote and contribute to the value of professional accountants in business by increasing awareness of the important roles professional accountants play, supporting member bodies in enhancing the competence of their members, and facilitating the communication and sharing of good practices and ideas.

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 173 members and associates in 129 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

#   #   #

IFAC Chief Executive Officer Fayez Choudhury and International Public Sector Accounting Standards Board (IPSASB) Deputy Chair Ron Salole recently participated in a World Bank Group-International Monetary Fund (IMF) seminar, “Strengthening Fiscal Transparency and Government Accounting,” held Tuesday, October 8 in Washington, DC.

The seminar was part of the World Bank Group-IMF 2013 Annual Meeting, bringing together central bankers, ministers of finance and development, private sector executives, and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.

Bertrand Badré, Managing Director and World Bank Group Chief Financial Officer, delivered a welcome address to the seminar participants, followed by a keynote speech from Gerd Schwartz, Deputy Director, IMF Fiscal Affairs Department.

Messrs. Choudhury and Salole were panelists for “Improving Government Accounting,” chaired by Charles McDonough, Vice President and Controller of the World Bank. The panel explored the importance of accrual accounting, opportunities and challenges with its implementation, and the role that the International Public Sector Accounting Standards (IPSASs) play for transparency and quality of government accounting.

"Sound government finances directly contribute to the efforts to restore or gain confidence in the public sector,” Mr. Badré said. “It is an important step in building trust in governments as the transparency, reliability, and accountability that result from such practices support value for taxpayer’s money.”

“IFAC’s support of high-quality international standards for the public sector will be instrumental in promoting more comprehensive and reliable fiscal reporting by governments around the world,” said Mr. Schwartz.

“Poor governmental reporting represents a threat to global financial stability and economic growth that must be addressed,” Mr. Choudhury said, citing the 2012 IMF paper Fiscal Transparency, Accountability and Risk, which highlighted the seriousness and extent of current inadequacies in governments’ fiscal reporting and accountability and underscored the risks associated with them.

“IFAC has long recognized that a fundamental way to protect the interests of the public and investors is to develop, promote, and enforce a common set of high-quality international financial reporting standards for the public sector,” he added. “That is why the IPSASB, an independent standard-setting board, was created to develop IPSASs.”

“We see the adoption of IPSASs as important to all economies around the world,” said Mr. Salole. “Additionally, there are some advanced economies that still follow cash accounting and we see this as inadequate in terms of governmental reporting.”

The event also featured regional briefings, press conferences, and other events focused on the global economy, international development, and the world's financial systems. The IMF also used the seminar to launch the new Fiscal Transparency Code, which will serve as a basis for a renewed push for greater fiscal transparency.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC. The IPSASB receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland.

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 173 members and associates in 129 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

#   #   #

As part of the continuing effort to strengthen the accountancy profession globally, the Professional Accountancy Organization Global Development Report was released today. The report is an initiative of MOSAIC, the Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration.

The report was created to provide an assessment of professional accountancy organization (PAO) development at the global, regional, and national levels. Through its 10 key findings, the report establishes the success factors and challenges associated with building a strong, sustainable accountancy profession supported by an effective PAO.

“As an integral part of national financial infrastructures, PAOs can provide significant contributions to the financial, economic, and social development of nations,” said Deborah Williams, MOSAIC Steering Committee co-chair and chair of the IFAC PAO Development Committee. “Capacity-building efforts benefit the global economy since properly functioning PAOs support the production of high-quality financial information and contribute to public and private sector development, economic growth, and the aid-effectiveness agenda.”

The report’s key findings include the importance of undertaking PAO development comprehensively at the national level; strengthening legal and regulatory foundations; furthering implementation of international standards; and supporting internal strengthening of PAOs. The findings will provide direction for the MOSAIC Steering Committee in its future endeavors.

“This report will provide vital direction on where to focus efforts to increase PAO capacity and improve the quality of public and private sector accounting and financial management, goals that underpin MOSAIC,” said Jennifer Thompson, MOSAIC Steering Committee co-chair and chief financial management officer at the World Bank. “It allows us to further the principles of aid effectiveness—embodied in the Paris Declaration, Accra Agenda for Action, and the Busan Partnership for Effective Development Cooperation—to contribute to economic growth and a reduction in poverty.”

MOSAIC is a historic Memorandum of Understanding that sets out the basis for improving cooperation and collaboration between IFAC, international donors, and the international development community. With 13 signatories, it provides the foundation for an aligned approach to increase the capacity of PAOs and improve the quality of financial management systems in emerging economies. The PAO Global Development Report was co-financed by the African Development Bank, Asian Development Bank, Inter-American Development Bank, and World Bank.

About MOSAIC
MOSAIC (the Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration) sets out the basis for improving cooperation and collaboration between IFAC, international donors, and the international development community. MOSAIC’s objective is to increase the capacity of PAOs in partner countries to improve the quality of public and private sector accountancy and financial management with a view toward enhancing the effectiveness and efficiency of donor assistance, contributing to economic growth, and reducing poverty. IFAC, the global organization for the accountancy profession, serves as the Secretariat for MOSAIC.

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 173 members and associates in 129 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

#   #   #

The International Federation of Accountants (IFAC) today announced the availability of the 2013 editions of the handbooks from the International Auditing and Assurance Standards Board (IAASB), International Ethics Standards Board for Accountants (IESBA), and International Public Sector Accounting Standards Board (IPSASB).

2013 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements

The 2013 handbook contains two new standards issued by the IAASB since the 2012 edition: International Standard on Auditing (ISA) 610 (Revised 2013), Using the Work of Internal Auditors and International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to Review Financial Statements.

To download an electronic copy of the handbook for personal use, purchase print copies, or find information on recent developments and outstanding exposure drafts, visit the IAASB’s website at www.iaasb.org.

2013 Handbook of the Code of Ethics for Professional Accountants

In addition to the extant Code of Ethics for Professional Accountants (the Code), the 2013 edition includes three revised pronouncements related to breaches of a requirement of the Code; conflicts of interest; and the definition of “engagement team.” Changes to these pronouncements will take effect in 2014. See individual pronouncements for details.

To download an electronic copy of the handbook for personal use, purchase print copies, or find information on recent developments and outstanding exposure drafts, visit the IESBA’s website at www.ethicsboard.org. 

2013 Handbook of International Public Sector Accounting Pronouncements

The 2013 edition includes Chapters 1-4 of the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities, which were issued in January 2013. The 2013 handbook also includes an updated list of those International Public Sector Accounting Standards (IPSASs) that are applicable to annual financial statements covering periods beginning on or after January 1, 2013, and a list of those IPSASs that are applicable to annual financial statements covering periods beginning on or after January 1, 2014.

To download an electronic copy of the handbook for personal use, purchase print copies, or find information on recent developments and outstanding exposure drafts, visit the IPSASB’s website at www.ipsasb.org.

The standards and pronouncements in each of the handbooks were developed by the IAASB, IESBA, and IPSASB, respectively. The structures and processes that support the operations of these independent standard-setting boards, including publishing the handbooks, are facilitated by IFAC.

The International Accounting Education Standards Board has not issued a 2013 edition of its Handbook of International Education Pronouncements but plans to publish an updated version in 2014.

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 173 members and associates in 129 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

#   #   #