CPA Australia and the Institute of Chartered Accountants in Australia, together with the Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC), hosted a forum for local professional accountants this week. The focus of the forum was on how professional accountants in business can support their organizations to improve governance practices through the integration of financial and non-financial information into their reporting, including a focus on environment, social, and governance (ESG) factors.

The forum and subsequent PAIB Committee meeting, held in Melbourne, included speakers from National Australia Bank, VicSuper (a retirement/pension provider), Macquarie Securities, KPMG, the University of Melbourne, the Water Accounting Standards Board (Australia), and the International Integrated Reporting Committee's content working group. A key focus of the discussions was how integrated reporting can drive good governance practices, including new systems and processes to measure, analyze, and report an organization’s environmental, social, and economic performance.

“Professional accountants help their organizations recognize the importance of incorporating ESG factors into functions and processes—from strategic planning and goal setting to external communications and reporting,” said Roger Tabor, chair of the PAIB Committee. “The speakers at the PAIB Forum and subsequent committee meeting served to help us better understand how organizations and their investors are managing ESG issues, and incorporating ESG into valuations and decision making.”

The forum was attended by approximately 150 delegates and the main conclusions were:

• Integrated reporting needs to reflect an organization’s strategy and values, as well as how it is managed in all social, environmental, and economic dimensions of performance;
• The process of integrated reporting, in turn, is a powerful tool to help drive an organization’s strategic agenda, providing management with key drivers of performance;
  Integrated reporting has to be open and transparent by reflecting both improvements in performance as well as weaknesses; and
• Pension fund investors, as well as some other institutional investors, are increasingly looking for financial implications of ESG factors to understand how an organization’s strategy and operations are affecting the numbers and key measures of performance.

The International Integrated Reporting Committee (IIRC), of which IFAC is a participant, is moving quickly and with wide stakeholder support to develop a globally accepted international framework for integrated reporting that brings together the various ESG reporting dimensions. The framework will be designed to make reporting more relevant for organizations, their shareholders, and their other stakeholders, to reduce the cost and complexity of reporting, and to provide a better basis to determine the cost of capital. The IIRC’s discussion paper is expected in 2011 and will be available at on the IIRC website.

Integrated Reporting and Sustainability Resources

• CPA Australia
• The Institute of Chartered Accountants in Australia
• International Federation of Accountants

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 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. IFAC is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

The launch of the Pan-African Federation of Accountants (PAFA)/Fédération Panafricaine des Experts-Comptables (FEPEC) is a historical event for the accountancy profession and the African continent, according to the International Federation of Accountants (IFAC). IFAC is the global organization for the accountancy profession, with members and associates in 125 countries.

PAFA is composed of 37 professional accountancy organizations from 35 countries, which have joined together to give voice to Africa’s economies and strategy on the global stage.

The PAFA President, Major General Sebastian Owuama, Institute of Chartered Accountants of Nigeria, stated: “As the economies of African countries continue to grow, the contribution of the accountancy profession to sound corporate and public sector financial reporting and good governance is now more important than ever. PAFA will accelerate the development of the profession and strengthen the voice of the profession within Africa and worldwide.”

The PAFA launch in Dakar, on May 5, 2011, was hosted by Ordre National des Experts Comptables et Comptables Agrées du Sénégal (ONECCA) with the strong support of IFAC and the World Bank. Dr. Mussa J. Assad, National Board of Accountants and Auditors, Tanzania, was named vice president. The PAFA Secretariat will be hosted by the South African Institute of Chartered Accountants in Johannesburg.

“The formation of PAFA demonstrates the commitment of the African accountancy profession, acting in the public interest, to strengthen its means of collaboration and to further develop the profession to support the emerging economies on the continent,” said Göran Tidström, IFAC President.

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 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has issued proposed International Good Practice Guidance titled Predictive Business Analytics: Forward-Looking Measures to Improve Business Performance. The guidance is designed to help professional accountants working in commerce, industry, financial services, education, and the public and not-for-profit sectors, as well as their organizations, embrace predictive analytics to achieve better forward-looking performance insights.

Predictive business analytics help professional accountants anticipate future events, forecast possible outcomes, and select actions and decisions to improve the performance of their organizations in response to changing market and industry dynamics.

“Today, more than ever, professional accountants in business must be capable of assisting their organizations to implement and utilize predictive business analytics,” said Roger Tabor, chair of the PAIB Committee. “The guiding principles steer an organization in executing its strategies and facilitating decision making to improve strategy execution and operations throughout the organization.”

The PAIB Committee undertook this project to help contend with the rising expectations of professional accountants in business. The quality of management information expected by internal business users is expanding, both in terms of the range of data to be considered and the level of required analysis. From strategic issues to routine tasks, all executives, managers, and operational staff expect higher-quality information from professional accountants to support management and organizational decision making.

Professional accountancy organizations and other interest parties are encouraged to respond to the proposed guidance and help improve its applicability to professional accountants in organizations of all sizes.

How to Comment
The PAIB Committee invites all stakeholders to comment. To access the exposure draft and submit a comment, visit Professional Accountants in Business on the IFAC website. Comments on the exposure draft are requested by July 29, 2011.

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. IFAC is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

The program below provides links to speaker biographies, speeches, and presentations from the 2011 IFAC Small and Medium Practices (SMP) Forum held in Istanbul, Turkey, on March 21, 2011. 

The following materials are also available:

• Interviews conducted by SMP Committee Deputy Chair Giancarlo Attolini
• Press release, IFAC Global Forum Highlights Role of SMPs in Partnering with Small Businesses
• Article, "IFAC SMP Forum Unites SMP Community, Facilitates Global Dialogue," on p. 10 of the April 2011 issue of IFAC News

Forum Program

Stathis Gould, IFAC, calls on the accountancy profession to step up and do its part to address the sustainability crisis.

Roger Tabor, Chair of the Professional Accountants in Business Committee addresses the Institute of Chartered Accountants of Pakistan on their 50th anniversary. Mr. Tabor discusses the influence and reach of the accountancy profession, and the objectives and focus areas of the Committee.

IFAC's comments on the FSA (UK) Guidance Consultation: Code of Practice for the relationship between the external auditor and the supervisor submitted on March 25, 2011.

The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has significantly updated its Sustainability Framework (the Framework), a tool to support professional accountants and their organizations as they integrate sustainability into their strategy, operations, and reporting. The Framework highlights the important roles that professional accountants play in facilitating the sustainable development of their organizations, as well as the importance of adopting an integrated approach to business reporting.

Embracing sustainability and corporate responsibility from three perspectives—strategy, operations, and reporting—is critical to gaining the trust of stakeholders and the wider public, and ultimately ensuring sustainable value creation. Through key considerations, as well as examples from major international corporations, smaller firms, professional accountancy organizations, and leaders from around the world, the Framework provides a comprehensive view of some of the current best practices globally in each of these areas, and is applicable to entities of all sizes and levels of complexity.

“Professional accountants are already doing much to help organizations minimize waste, create efficiencies, and cut costs, which is undoubtedly the biggest driver for embracing sustainability,” said Roger Tabor, chair of the PAIB Committee. “However, accountants also need to be prepared to take on new and expanded roles, activities, and skills as they support their organizations in charting a more sustainable path. The Framework can help them on this journey.”

“To successfully embed sustainability within an organization, business leaders and professional accountants must recognize the importance of incorporating environmental, social, and governance factors into all functions and processes—from strategic planning and goal setting, to external communications and reporting. And, each of these areas is interconnected: to produce high-quality sustainability and integrated reports, these factors must be embedded into an organization’s culture and decision making,” said Ian Ball, CEO of IFAC.

Presented in a digital magazine format, and available in PDF, the Framework contains numerous internal links to allow professional accountants to easily navigate to the sections of most relevance to their particular roles. All sections include key considerations for professional accountants, including examples and references to other sources of information and guidance. The Sustainability Framework is available on the IFAC website.

About the PAIB Committee
The PAIB Committee serves IFAC member bodies and the more than one million professional accountants worldwide who work in commerce, industry, financial services, the public sector, education, and the not-for-profit sector. 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. IFAC is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.