What does it take to establish a national professional accountancy organization (PAO)? How about one that is relevant, sustainable, and ready to adopt and implement international standards and best practices? Is there a set formula for success?
At a recent IFAC Professional Accountancy Organizations (PAO) Development Committee meeting, members brainstormed possible solutions to PAO challenges in specific country contexts, building on committee members’ years of experience working with PAOs and accountancy regulators. Using fictional case studies of PAOs operating in different jurisdictions and circumstances, discussions focused on overcoming barriers, seizing opportunities, and identifying and engaging with key stakeholders to achieve set objectives.
The stories told provide though-provoking insight into approaching the accountancy profession and PAO development journey.
Union of Accountants, Auditors, and Financial Workers of the Federation of Bosnia and Herzegovina
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Jordan SMO Workshop
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IFAC President Rachel Grimes Addressing Accountancy Education Workshop
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ASEAN Council Meeting
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Costa Rica SMO Workshop
Over 100 Member Organization & Country Profiles Now Available Online
Comprehensive profiles of IFAC member organizations and the jurisdictions in which they operate are available on the IFAC website. These in-depth profiles support transparency; adoption and implementation of international standards; and the public interest by demonstrating international standards’ widespread use and the profession’s efforts to encourage adoption, advance implementation, and support the businesses, governments, and communities in their nations.
For more information on the new webpages and how to locate and use the information, take a look at our previous eNews issue, which served as a mini-primer on the new content. Please email any feedback or questions to compliance@ifac.org.
What We’ve Learned
To celebrate hitting our 100th profile mark, we’ve collated high-level trends and learning—gleaned from reading the published profiles.
Partnerships and collaboration are key. Professional accountancy organizations (PAOs) in Albania, Bahamas, Bangladesh, Egypt, Liberia, Montenegro, Jordan, Serbia, andSouth Africa, among others, are partnering with global, regional, and local organizations to advance the implementation of international standards and best practices.
There is a continued focus on ensuring high-quality audits. Consultations on audit regulation and auditing standard translations are underway in Belgium, Botswana, Hong Kong, Pakistan, Slovenia, andUzbekistan.
High quality preparation of financial statements has not been overlooked. Egypt, Finland, Iraq, Pakistan, andSouth Africa have implemented IFRS certification courses, issued guidance, and/or established partnerships with stakeholders to support proper implementation.
Dedicated promotion of IPSAS continues. Recognizing the role PAOs play in the public sector, PAOs in Bangladesh, Benin, Lesotho, Papa New Guinea, andSerbia are actively promoting the adoption and implementation of IPSAS through discussions with government officials and training their members.
PAOs are successfully advocating on behalf of the profession and their members. The successful passage of new national accountancy laws in the Bahamasand the Cayman Islands, and OHADA regional requirements, were largely due to PAOs’ advocacy efforts.
We recommend reviewing the profiles for your jurisdiction, member organization, and other countries to more fully understand the accountancy profession in your nation and other areas.
Spotlight On: Global Efforts to Strengthen the Accountancy Profession
Peru
In October 2016, the Junta de Decanos de Colegios de Contadores Públicos del Perú met with Peruvian universities authorities and reached three important agreements that will contribute to International Education Standards adoption.
Laos & Singapore
In October 2016, the Institute of Singapore Chartered Accountants and the Lao Chamber of Professional Accountants and Auditors signed a Memorandum of Understanding to further develop the accountancy profession in Laos. Read more>>
Brazil
The Instituto dos Auditores Independentes do Brasil (Institute of Independent Auditors of Brazil, or IBRACON) and the Conselho Federal de Contabilidade (Federal Accounting Board, or CFC) are working to adopt the International Ethics Standards Board for Accountants’ new standard on responding to non-compliance with laws and regulations (NOCLAR) one step at a time. Read how>>
Lesotho
The Lesotho Institute of Accountants has launched the Lesotho Professional Accountancy Programme, the country’s first locally-developed accounting qualification, designed to strengthen professionalization in the private and public sectors. Learn more>>
Supporting Member Organizations
Realizing the Power of PAOs: Professional Qualification and Accountancy Education Workshop In conjunction with the 4th African Congress of Accountants in Kampala, Uganda, IFAC and the Pan African Federation of Accountants held an interactive workshop on the approaches PAOs use in educating and qualifying professional accountants. Representatives from PAOs in more than 25 countries participated in the workshop. Highlights will be posted on the IFAC website soon.
Jordan SMO Workshop In cooperation with the Jordanian Association of Certified Public Accountants and the World Bank Group’s Global Governance Practice, IFAC organized an SMO workshop in Sweimeh, Jordan in January 2017 focused on regional issues impacting the profession. Key takeaways >>
Inter-American Association Workshop To promote quality assurance systems implementation and prepare reviewers in the Latin America region, IFAC staff participated in a session of the Inter-American Association’s Train the Trainers workshop in October 2016. The workshop was a follow-up to the IFAC workshop in Costa Rica in early 2016, which uncovered some of the regional challenges for quality assurance systems. Read more in Spanish>>
ASEAN Council The 122nd ASEAN Federation of Accountants Council meeting in Singapore included presentations from IFAC staff on the compliance program’s work plan, the published member and country profiles, and the new, enhanced CARE framework. Read more >>
Costa Rica SMO Workshop More than 30 representatives from 17 Central and South American and Caribbean PAOs discussed regional issues affecting the profession during a workshop focused on IFAC’s Statement of Membership Obligations, held in cooperation with the Colegio de Contadores Públicos de Costa Rica in February 2016. Read more>>
Supporting Capacity Building
IFAC Capacity Building Program
Projects under the IFAC Capacity Building Program, with funding from the UK Department for International Development, are currently underway in Ghana, Kyrgyzstan, Nigeria, Rwanda, Uganda, Zimbabwe, and regionally in Africa. Each project targets a specific development area based on the needs of the national PAO(s), such as accountancy education or public sector accountancy capacity.
MOSAIC Steering Committee Webinar
The MOSAIC Steering Committee met in April 2017 to advance the Foundations Project—an initiative of the IFAC Capacity Building Program with funding from the UK Department for International Development to build foundational accountancy skills in the public and private sectors in emerging economies. A competency framework was developed under the project, which will be field tested through an upcoming project in Rwanda; development of additional support tools is planned for the future. The Steering Committee also considered a potential initiative to build accountancy capacity in fragile states.
Upcoming Dates:
June 2017: ICAC Conference, Guyana
July 2017: SMO Workshop, Vietnam
July 2017: Compliance Advisory Panel Meeting, Vietnam
October 2017: MOSIAC, Compliance Advisory Panel, and PAO Development Committee Meetings, New York
The IFAC Quality & Development Team supports IFAC member organizations’ efforts to adopt and implement international standards (thus improving SMO fulfillment) and build the capacity of the global accountancy profession.
The team manages the Member Compliance Program and the membership admission process, PAO Capacity Building Program, including the PAO Development Committee, Accountability. Now. and sustainable accountancy development efforts. The Member Compliance Program is overseen by the Compliance Advisory Panel and the Public Interest Oversight Board as one of IFAC’s public interest activities.
Global economic stability and transparency and the rebuilding of public trust will be greatly enhanced by a determined G20 push for stronger governance across all sectors, according to IFAC—the International Federation of Accountants. In advance of the G20 Summit 2017 in Hamburg, Germany on July 7-8, IFAC issued actionable recommendations for G20 countries that will support both the global economy and the G20’s 2017 objectives.
“Rebuilding trust in the global economy and financial systems is critical to inspiring the confidence the world needs for sustained economic growth. Especially in these uncertain times, stakeholders with a passion for transparent, accountable governance must work together,” said IFAC Chief Executive Officer, Fayez Choudhury. “Individuals and institutions must be empowered by strong governance; fortified by a consistent, transparent regulatory environment; and enabled by access to a high-speed, secure digital environment.”
IFAC calls on the G20 and other key stakeholders in the global economy to collaborate on:
Raising governance standards across all economic sectors to increase transparency and accountability, and help restore trust and inspire confidence in business and government, key to the G20’s aspirations to: build resilience, improve sustainability, and assume responsibility.
Fostering greater transparency and regulatory consistency to achieve growth, confidence, and stability. This requires an inclusive digital and economic environment for businesses of all sizes, as well as implementation and adoption of high-quality internationally-accepted regulations and standards.
IFAC’s member organizations represent almost 3 million accountants globally. They contribute nearly USD$250 billion gross value added annually, and facilitate higher standards of living. Recent research also shows that a higher percentage of accountants in the workforce strongly correlates to better outcomes in Transparency International’s Corruption Perceptions Index—and that the impact is improved even further when accountants operate in countries with strong governance architectures.
IFAC strengthens the accountancy profession by:
supporting the development of high-quality international standards;
promoting the adoption and implementation of these standards;
building the capacity of professional accountancy organizations; and
speaking out on public interest issues.
Visit IFAC’s website for IFAC’s full recommendations to the G20.
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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.
The IFAC Small and Medium Practices (SMP) Committee submitted this comment letter to the International Ethics Standards Board for Accountants in response to its Exposure Draft, Proposed Revisions Pertaining to Safeguards—Phase 2 and Related Conforming Amendments.
The IFAC Small and Medium Practices (SMP) Committee submitted this comment letter to the International Ethics Standards Board for Accountants in response to its Exposure Draft, Proposed Revisions to Clarify the Applicability of Provisions in Part C of the Extant Code to Professional Accountants in Public Practice.
Following on the fundamental reorientation the IFAC Professional Accountants in Business Committee made to its meetings and communications in 2016, this report shares the knowledge, ideas, and experience of the committee on developing a future-ready profession.
The main themes in the report, and in the meeting it flows from, are:
Following on the fundamental reorientation of the IFAC Professional Accountants in Business Committee made to its meetings and communications in 2016, the committee has issued a report that shares the knowledge, ideas, and experience of the committee on developing a future-ready profession.
The report is designed to be accessible, with improved navigation, summaries that enable a fast read; and clearly identified future actions and recommendations.
The main themes in the report, and in the meeting it flows from, are:
digital disruption and rapid cognitive business development;
the continued evolution of the profiles of finance leadership and accountants in business;
effective risk management;
how integrated reporting can lead to better reporting outcomes; and
how the new media landscape is changing the way we communicate.
The Committee, made up of an international group of thought leaders from IFAC member organizations, met in New York March 29-30 for its bi-annual meeting, chaired by Charles Tilley, Executive Chairman of the CGMA Research Foundation. Insights from the meeting will help raise awareness of emerging trends, challenges, and opportunities affecting the accountancy profession and accountants in business across the globe, and will help the global profession coordinate activities.
Attendees included 15 members of AFA as well as Christopher Fabling, Senior Financial Management Specialist with the World Bank, who provided an update on current World Bank initiatives in the ASEAN region, and Dan Montgomery, former Deputy Chairman of the International Auditing and Assurance Standards Board, who addressed the New Auditor’s Report.
While in Singapore, IFAC also met with several member organizations to discuss elements of the Compliance Program and other professional accountancy organizations in the region that are interested in membership.
Compiled for the Professional Accountants in Business Committee meeting in March 2017, this presentation addresses tech trends and their impact, and disruption, of accountancy and the finance function.
The presentation is both an overview of key topics and a collection of resources.
This presentation is available to IFAC member organization to share and/or customize. Please contactstathisgould@ifac.orgto request use.
