The International Federation of Accountants (IFAC), the global organization for the accountancy profession, today announced the election of Warren Allen, of New Zealand, as president for a two-year term ending November 2014. The IFAC Council also approved the nomination of Olivia Kirtley, of the United States, as deputy president, a role previously held by Mr. Allen.

“Ours is a global profession—in fact, probably the only truly global profession,” said Mr. Allen. “We have much to celebrate, but there are still many demands to be met. I am completely committed to meeting these demands—to working with the boards and committees, IFAC member bodies, and IFAC’s exceptional management team and staff to deliver on all of the priorities contained in the strategic plan.”

Mr. Allen has served on the IFAC Board for six years. He was elected deputy president in 2010, and served as chair of the Planning and Finance Committee, which leads the development of IFAC’s strategic plan. He is executive director and recently retired partner of Ernst & Young New Zealand and is a past president and Life Member of the New Zealand Institute of Chartered Accountants. He previously served on IFAC's Education Committee (now the International Accounting Education Standards Board) for over 10 years, including as chair from 1998 to 2004. 

Ms. Kirtley will serve as deputy president for a two-year term and also take the role of chair of the Planning and Finance Committee. She joined the IFAC Board in 2007, and has chaired the Governance and Audit Committee. Ms. Kirtley is a non-executive director for U.S. Bancorp, Papa John’s International, Inc., and ResCare, Inc. She has also served as chair of the American Institute of Certified Public Accountants (AICPA) and of the AICPA Board of Examiners. For more information on Olivia Kirtley, see her biography.

“As the world continues to face the effects of the sovereign debt and financial crises, and the accountancy profession continues to play its role as a valued leader in the development of strong and sustainable organizations, financial markets, and economies, the experiences Warren and Olivia bring to IFAC and to the accountancy profession are indispensable,” said Göran Tidström, outgoing president of IFAC. “Warren’s experience on the Education Committee and his service as deputy president and as chair of IFAC’s Planning and Finance Committee will serve IFAC well, and Olivia’s experience as a professional accountant in business and corporate director will bring new perspectives to the role. In addition, I am personally very gratified that we have appointed the first female deputy president of IFAC.”

New Board Members Elected
The IFAC Council meeting also included the election of six new members to the IFAC Board: Carol Bellringer (Canada), Norunn Byrkjeland (Norway), Dr. Yugui Chen (China), Pamela Monroe Ellis (Jamaica), Dr. In-Ki Joo (South Korea), and Russell Loubser (South Africa). The IFAC Council also re-elected Jacques Potdevin (France) and Marta Rejman (UK). These additions and re-elections add to the diversity of the IFAC Board—in gender, geography, and professional experience.

IFAC Admits New Members
Six new associates were admitted to the organization: the Albanian Institute of Certified Accountants, the Association of National Accountants of Nigeria, the Institute of Professional Auditors (Russia), the Ordre National des Experts Comptables et des Comptablies Agréés du Togo, the Institute of Certified Public Accountants of Rwanda, and the Ordem Dos Tecnicos Oficiais dos Contas (Portugal) were admitted as associates. Two existing associates were admitted to the organization as members: the Association of Accounting Technicians (UK) and the Mongolian Institute of Certified Public Accountants. Additionally, IFAC officially granted the Pan African Federation of Accountants Recognized Regional Organization status. For a full listing of IFAC members, see the membership section of IFAC’s website.

Approves Strategic Plan 2013-16
As part of the Council Meeting, IFAC’s strategic plan for 2013-16 was approved. The theme of the plan, Leading the Way, signifies IFAC’s intent to solidify its position as the global voice of the accountancy profession and to take on an increased leadership role on key global initiatives.

The plan highlights IFAC’s responsiveness to the major global regulatory shifts that will continue to shape the profession in the coming years. It will continue to focus on its core activity: development, adoption, and implementation of high-quality international standards. In addition, it will continue its focus on improved public sector financial reporting and integrated reporting, and enhance its focus on regulation and public policy. It will continue to take an inclusive approach, with an emphasis on capacity building. And finally, it will pursue a sustainable funding model.

To download the plan, see Strategic Plan for 2013–2016.

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.

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Note to Editors – IFAC Board Members November 2012-November 2013:

Warren Allen (President)
Olivia Kirtley (Deputy President)
Carol Bellringer,* Canada
Jelil Bouraoui, Tunisia
Norunn Byrkjeland,* Norway
Ramon Casals, Spain
Dr. Yugui Chen,* China
Pamela Monroe Ellis,* Jamaica
Ana Maria Elorrieta, Brazil
Rachel Grimes, Australia
Ahmadi Hadibroto, Indonesia
Robert Harris, United States
Robert Hodgkinson, United Kingdom
Prof. In-Ki Joo,* Republic of South Korea
Japheth Katto, Uganda
Russell Loubser,* South Africa
Jacques Potdevin,** France
Ganapathy Ramaswamy, India
Marta Rejman,** United Kingdom
Makoto Shinohara, Japan
Masum Turker, Turkey
Steven Vieweg, Canada

* New IFAC Board members as of November 2012
** IFAC Board member reappointed for a second term in November 2012

IAASB Chair Prof. Arnold Schilder was a guest speaker at the Public Seminar in Melbourne, Australia, presenting Directions in Auditing & Assurance: Challenges and Opportunities. The presentation focused on the relevance of Clarified International Standards on Auditing (ISAs), the Challenges to the Relevance of Audit, Auditor reporting and the IAASB’s Invitation to Comment (ITC), titled Improving the Auditor’s Report, and the challenges and opportunities in setting international auditing and assurance standards.

The International Accounting Education Standards Board (IAESB) has released (IES) 6, Initial Professional Development—Assessment of Professional Competence. The revised education standard will help IFAC member bodies and other professional accountancy organizations understand the learning and development requirements for assessing professional competence, and their obligations in upholding the standards.

The revised standard also addresses elements that are essential to assessing professional competence of an aspiring professional accountant.

Presentation on IFAC's current strategic initiatives and objectives at the United Nations Conference on Trade and Development (UNCTAD)'s International Standards of Accounting and Reporting (ISAR) conference on accounting standards, corporate transparency, and developing countries.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, held its 35^th Council Meeting in Cape Town, South Africa this week. As part of the meeting, IFAC held its annual seminar, which focused this year on integrated reporting.

The seminar, A Fundamental Shift in Corporate Reporting, featured a keynote address by Prof. Mervyn King SC, chair of the International Integrated Reporting Council and chair of the King Committee on Corporate Governance in South Africa, which has published the King I, King II, and King III Reports on Corporate Governance.

This year’s seminar focused on drawing upon the experiences and perspectives of integrated reporting in practical terms—the South African experience, how to implement integrated reporting, and how to address the challenges and opportunities for small- and medium-sized entities and accountancy practices.

“This year’s seminar recognized the vital role the accountancy profession plays in bringing integrated reporting to more organizations,” said IFAC President Göran Tidström. “Integrated reporting isn’t just a trend—it reflects global changes in best practices and stakeholder expectations and will provide a more complete picture of the health and wellbeing of organizations.”

The seminar included high-profile speakers including Prof. Alexandra Watson, College of Accounting, University of Cape Town; Malcolm Gray, Portfolio Manager, Responsible Investment Portfolios, Investec Asset Management; Graham Terry, Senior Executive: Strategy and Thought Leadership, South African Institute of Chartered Accountants; Ian Jameson, Chief Advisor, Climate Change and Sustainable Development: Sustainability Division, Eskom; Helen Brand, Chief Executive, Association of Chartered Certified Accountants; Michael H. Rea, Partner, Integrated Reporting & Assurance Services; and Nicky van Hille, Director, The Moss Group. Roger Tabor, Chair of IFAC’s Professional Accountants in Business Committee, moderated the seminar.

Highlights from the seminar will be available on the IFAC website in the coming weeks.

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 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 Auditing and Assurance Standards Board (IAASB) today released for public comment proposed International Standard on Auditing (ISA) 720 (Revised), The Auditor’s Responsibilities Relating to Other Information in Documents Containing or Accompanying Audited Financial Statements and the Auditor’s Report Thereon.

The proposed standard clarifies and enhances the scope and focus of auditor efforts on “other information”–that is, information included in documents containing or accompanying the entity’s audited financial statements. The proposals recognize that significant changes in financial reporting have occurred over the last two decades regarding the information issued in connection with an entity’s financial statements and the manner in which it is shared with users.

“Today, pertinent disclosures are made not only within financial statements, but also outside of them. As preparers endeavor to better communicate with stakeholders, these disclosures are being disseminated through a diverse range of documents as other information that accompanies audited financial statements. Users are attaching greater importance to this information, particularly when it is more qualitative in nature,” notes Prof. Arnold Schilder, IAASB Chairman. “The public interest question is: Is this auditing standard as up-to-date as it needs to be, and does it do enough to ensure that auditors review this other information in the context of their understanding of the audited entity? Our proposals for an enhanced ISA 720 seek to evolve the requirements so that they remain relevant and sufficient in today’s financial reporting environment.”

Under the proposed standard, the auditor is required to read and consider the other information in light of the understanding of the entity and its environment the auditor has acquired during the course of the audit, and to respond appropriately when the auditor identifies a potential material inconsistency in the other information or a material misstatement in the audited financial statements. The proposed ISA 720 expands the documents considered as “other information,” and clarifies and enhances the nature of the auditor’s responsibilities with respect to reading and considering other information. In addition, it includes guidance to assist auditors in determining the nature and extent of their work in considering the other information.

Proposed ISA 720 (Revised) also introduces reporting obligations to explain in the auditor’s report the nature of the auditor's responsibilities relating to the other information and the findings from the auditor's work, to enhance transparency. The proposals do not extend the scope of the auditor’s opinion on the financial statements to cover the other information.

How to Comment
The IAASB invites all stakeholders to comment on its proposals. To access the Exposure Draft or submit a comment, visit the IAASB’s website at www.iaasb.org. Comments on the exposure draft are requested by March 14, 2013.

About the IAASB
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (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) today presented its International Gold Service Award to Professor Mervyn King. IFAC President Göran Tidström presented the prestigious award, which recognizes outstanding contributions to the accountancy profession, during IFAC’s annual Council Meeting.

In his remarks, Mr. Tidström highlighted Mervyn King’s substantial contributions to corporate governance and integrated reporting. In particular, in his role as chair of the King Committee on Corporate Governance in South Africa, Mr. King has demonstrated extraordinary foresight and dedication, pioneering the drafting of the international benchmark for corporate governance guidelines known as King I (now King III), which have been lauded for their inclusive and integrated approach. King now presides at the center of the integrated reporting movement, chairing the International Integrated Reporting Council (IIRC), which has been charged with drafting an internationally accepted integrated reporting framework. Prior to the IIRC’s formation, King led the accelerated development of such a framework for South Africa, when the country, in 2010, became one of the first in the world to require publicly listed companies to produce integrated reports. 

“It is my privilege to present the IFAC International Gold Service Award to Mervyn King here in his home country, where his work in corporate governance and integrated reporting has made South Africa a role model for the rest of the world,” said Göran Tidström. “His leadership and achievements have set the bar higher, challenging the profession worldwide to grow and evolve. His contributions have forever changed the way businesses measure and report on their performance, for the betterment of the accountancy profession, the global business community, and society as a whole.”

King’s illustrious and varied career also includes his work as an attorney, arbitrator, mediator, and advisor. He served as a judge in the Supreme Court of South Africa for two years and as the South African judge at the International Chamber of Commerce International Court of Arbitration in Paris for nine years. He has received numerous academic accolades, including being named Professor Extraordinaire at the University of South Africa in the College of Economic and Management Sciences. He holds an honorary doctor of laws from the University of the Witwatersrand, in addition to numerous honorary appointments and other awards.

About the IFAC International Gold Service Award
The IFAC International Gold Service Award was created by the IFAC Council in 2010 to recognize outstanding individual contributions to the accountancy profession. 

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 Comparison Guide is designed to explain all the revisions to the Statements of Membership Obligations. It provides an explanation of the revisions and serves as a useful tool to assist member organizations and their technical staff to identify changes and understand and address them.