The Realizing the Power of PAOs seminar in Hanoi, Vietnam, on August 17, 2012, brought together more than 50 individuals representing IFAC, the World Bank, and regional organizations and professional accountancy organizations (PAOs) from across the East Asia Pacific region and beyond. The event was hosted by the Vietnam Association of Certified Public Accountants (VACPA) and supported by the Confederation of Asian and Pacific Accountants (CAPA).

The event included presentations from World Bank and IFAC experts who set both the global and regional scenes, recognizing the importance of the accountancy profession and, specifically, the role of PAOs. Presentations also examined the development successes and challenges of PAOs in the context of East Asia Pacific.

Szymon Radziszewicz, IFAC senior technical manager, provided an overview of IFAC’s framework for successful PAOs, including IFAC’s position on global regulatory convergence, balancing shared regulation, and the IFAC Statements of Membership Obligations (SMOs).

A panel session showcased the available tools and diagnostics that support strengthening and development of PAOs, including the World Bank Reports on the Observance of Standards and Codes (ROSC) program, the IFAC Compliance Program and membership requirements, the PAO Development Committee strategy implementation, and an overview of efforts being made by the Recognized Regional Organization CAPA.

The second part of the day was an interactive workshop during which PAOs representing the East Asia Pacific region and beyond had an opportunity to discuss their recent achievements, current challenges, and lessons learned. This session sought to contextualize the range of guidance and information provided earlier in the day, and, most importantly, allowed national PAOs to exchange experiences, receive input from others, and share ideas.

While in Vietnam, Mr. Radziszewicz and Marta Russell, IFAC technical manager, held outreach meetings with key representatives of the profession, including the Ministry of Finance, IFAC member body the Vietnam Association of Accountants and Auditors, and the World Bank. Discussions focused on providing stakeholders with an overview of IFAC’s structure and priorities and enhancing IFAC’s understanding of the nature of the profession and current priorities and challenges for these organizations. Mr. Radziszewicz and Ms. Russell also participated in The Vital Role of PAOs, a conference held by VACPA and CAPA.

A high-level summary of the workshop discussions will be made available soon.

Presentation given at the South African Institute of Professional Accountants (SAIPA) National Conference detailing the current status of integrated reporting globally and in Africa and how the issue is playing out for small- and medium-sized entities (SMEs).

Fayezul Choudhury began life as an accountant because it gave him the footing he needed to work in business. After a 25-year hiatus at the World Bank he will return to the profession taking on the role of IFAC chief executive. Nicola Maher catches up with him before this next chapter begins early next year.

(The Accountant website) 

In the latest issue of The Chartered Accountant, the member body publication for the Institute of Chartered Accountants of India, IFAC President Goran Tidström presents the IFAC perspective on the role of accountancy profession in the globalized world.

Complexity and pace of change of regulations, in particular tax requirements, topped the list of challenges faced by small- and medium-sized accountancy practices (SMPs) and their small business clients in the first half of 2012, according to the SMP Quick Poll results released today by IFAC.

Keeping up with new regulations and pressure to lower fees were the top two challenges for practitioners. Their clients face similar challenges, according to the SMPs polled, with burden of regulation topping the list and three economic factors—pressure to lower prices, economic uncertainty, and difficulties accessing finance—nearly tied as the next biggest challenges.

“The results are critical to IFAC and its member bodies gaining a deeper understanding of the challenges and opportunities faced by SMPs globally,” said SMP Committee Chair Giancarlo Attolini. “We were very pleased with the high response rate to this survey, which is testimony to the fact that our member bodies, who heavily promoted the poll, are just as concerned about SMPs as we are.”

The poll also included questions on business drivers and outlook. For nearly half the respondents, business from new clients is the main driver of growth by a wide margin with less than half as many respondents citing increased revenue from existing clients as their main driver of growth. However, when asked about performance expectations, the largest portion of practitioners expect no change in business in the current year compared with 2011.

See the complete report including selected results broken down by size of practice and region in the IFAC SMP Quick Poll: May–June Results.

The mid-year 2012 poll received 3,678 responses, 50% more than the last edition of the poll in December 2011. The poll, intended to take a snapshot of key challenges and trends influencing SMPs globally, was conducted in 15 languages from May 7 to June 14, 2012. IFAC wishes to thank the many member bodies and regional organizations that translated and/or helped promote the poll to their members.

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 the 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. IFAC is comprised of 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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This report provides a summary and, where appropriate, analysis and commentary including possible limitations of the data from the poll conducted May 7-June 14, 2012. This edition of the poll received 3,678 responses and was conducted in 15 languages.

At the February 2012 Professional Accountancy Organization (PAO) Development Committee Meeting in Dubai, UAE, the committee held discussions on the development of PAOs throughout the Middle East region. Committee members, observers, and guests from national, regional, and global stakeholders participated in these discussions. Points made during the course of the meeting have been refined into this informal high-level guidance.

The International Federation of Accountants (IFAC) values the opportunity to provide a response to the Accounting and Corporate Regulatory Authority (ACRA) Consultation on the Accountants Act Review, May 2012.

The International Federation of Accountants (IFAC) today announced the availability of the 2012 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).

2012 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements
The 2012 edition includes two new standards: ISAE 3410—Assurance Engagements on Greenhouse Gas Statements and ISAE 3420—Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus. It also includes IAPN 1000—Special Considerations in Auditing Financial Instruments, and revised versions of the Preface, ISA 315—Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, ISA 610—Using the Work of Internal Auditors and conforming amendments to other ISAs as a result of this revision, and ISRS 4410—Engagements to Compile Financial Statements. It will be available in July and can be pre-ordered here.

2012 Handbook of the Code of Ethics for Professional Accountants
The 2012 edition includes a new introduction and editorial amendments. It will be available in July and can be pre-ordered here.

2012 Handbook of International Public Sector Accounting Pronouncements
The 2012 edition includes a new standard: IPSAS 32, Service Concession Arrangements: Grantor. IPSAS 32 is effective for annual financial statements covering periods beginning on or after January 1, 2014. The 2012 handbook also incorporates the amendments made as a result of the IPSASB’s 2011 Improvements Project, as well as a revised Terms of Reference and Preface to International Public Sector Accounting Standards. The IPSASB handbook is currently available and can be ordered here.

The material contained in the handbooks was 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.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The International Federation of Accountants (IFAC), the global organization for the accountancy profession, today issued Position Paper 5, A Definition of the Public Interest.

A hallmark of the accountancy profession is its obligation to act in the public interest. But it is not always apparent what this means, and how accountants can determine whether they are meeting this expectation. IFAC, by developing this position paper, is seeking to advance its understanding of this important issue. The paper, which presents a practical definition of the public interest, was developed in the context of IFAC’s mission, to enable IFAC to assess the extent to which its actions and decisions are made in the public interest.

In light of the challenges presented by prevailing market and economic conditions, policy makers, regulators, standard setters, professional accountants, and others in the financial system are examining their roles, responsibilities, and actions; and therefore it is timely to consider the basis on which these actions are taken, and decisions made.

“IFAC developed this definition of the public interest to assist us in evaluating whether our actions and decisions are in fact in the public interest,” said IFAC CEO Ian Ball. “Whether we are using it to develop public policy positions, professional standards, or guidance and tools, we believe the definition provides rigor, objectivity, and consistency in assessing the important public interest perspective of our work. It applies not only to evaluating past and current actions and decisions; but also guides our behavior and the manner in which we assess future actions and decisions. We believe that the definition may also be relevant to other organizations and individuals that seek to act in the public interest, and feel the need for increased rigor in evaluating their actions and decisions.”

The development of the position paper included a public consultation process. Comments and feedback received from a range of stakeholders in the accountancy profession, regulatory community, and academia were considered, and incorporated into the final paper. “While we consulted widely on this policy position paper before issuing it, we continue to invite dialogue on the subject,” continued Ball. “Clearly it is a complex subject, and we hope that this paper is the beginning, rather than the end, of the debate.” 

IFAC welcomes comments on this paper to: PubInt@ifac.org

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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