This information paper features interviews with 10 senior-level professional accountants in business on their experiences and views on establishing effective internal control systems.

The International Federation of Accountants (IFAC), the World Bank and the Inter-American Development Bank undertook a significant collaborative effort last week by organizing an event in Mexico City titled Accounting and Accountability for Regional Economic Growth (Contabilidad y Responsabilidad para el Crecimiento Económico Regional or "CReCER" in Spanish). Over 450 individuals, including representatives of the accountancy profession, governments, the donor community, and academia from 27 Latin American and Caribbean countries as well as 16 other countries participated in this event.

"This conference was a landmark event for the Latin American and Caribbean region. Never before have public and private sector representatives from the accounting and auditing profession come together under one roof to discuss the issues facing the region," states IFAC President Fermín del Valle.

Participants indicated that combating poverty and developing stable economies are the two fundamental and interrelated challenges facing Latin American and Caribbean nations. Discussions focused on achieving quality financial reporting in the private and public sectors, the needs of the accountancy profession in the region, the role of the government in accountancy and accountancy development, and the importance of sustaining good governance and ethics.

"The conference resulted in a unanimous commitment by international stakeholders to support the improvement of financial reporting and to actively foster economic development in the region. We also heard a clear commitment from participants for convergence to international standards," added Mr. del Valle.

Other outcomes of the meeting included agreement on the following:

• The need for increased input from the Latin American and Caribbean region into international standard setting;
• The development of a single set of high quality Spanish translations of all international standards; and
• Collaboration among countries in the region as well as sustaining relationships with regional and international partners as a requisite for success.

IFAC's Developing Nations Committee and staff will be considering the outcomes of the conference as it advances its work program in the region. Copies of all presentations made at CReCER will be available here shortly.

Founded in 1977, 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.

Good afternoon ladies and gentlemen.

Before I start I would just like to say what a privilege and a pleasure it is for me to be able to participate on this panel. I wish to focus my comments on the work of the IFAC Small and Medium Practices (SMP) Committee that I chair in helping meet the needs of SMPs in this region.

Let me first articulate what my committee suspects are the main issues confronting SMPs in Latin America and the Caribbean.

First, the issue of the relevance of international standards of accounting, assurance, education and ethics to SME/SMP. Some believe these standards are written primarily with large entities in mind resulting in over-regulation of SME/SMP. For example, we fear new auditing standards may undermine the viability of SME audits and SMPs.

Secondly there is the issue of the capacity of SMP/SME to efficiently implement, and comply with, these standards. Small practitioners lack specialist in-house resources and suffer from professional isolation.

Thirdly SMPs are faced with acute problems - increasing competitive pressures, a decreasing amount of staple regulatory work, and operational problems such as staff recruitment and retention and effective networking.

Good morning ladies and gentlemen. Thank you for participating today in this regional conference for the Caribbean and Latin America on accounting and accountability for regional economic growth.

Together with the World Bank and the Inter-American Development Bank, it is our intention that this conference provide us the opportunity to identify the principal challenges and questions that the region needs to address and, above all, to permit us to identify concrete solutions and, in some cases, to consider collaborative projects that make these solutions viable or more efficient. ** Note: Attached below are the English and Spanish versions of this speech.

Professional accountants in business worldwide will get added assistance from the International Federation of Accountants (IFAC) in the form of new international principles-based good practice guidance. A newly released exposure draft (ED), Preface to IFAC's International Management Accounting Statements and International Good Practice Guidance, developed by IFAC's Professional Accountants in Business (PAIB) Committee, sets out the objective, scope and due process of two new types of guidance: International Management Accounting Statements and International Good Practice Guidance. The PAIB Committee seeks input on the approach to representing good practice to professional accountants in business and the proposed document types.Professional accountants in business worldwide will get added assistance from the International Federation of Accountants (IFAC) in the form of new international principles-based good practice guidance. A newly released exposure draft (ED), Preface to IFAC's International Management Accounting Statements and International Good Practice Guidance, developed by IFAC's Professional Accountants in Business (PAIB) Committee, sets out the objective, scope and due process of two new types of guidance: International Management Accounting Statements and International Good Practice Guidance. The PAIB Committee seeks input on the approach to representing good practice to professional accountants in business and the proposed document types.

Together with the draft Preface, the PAIB Committee has released new guidance on developing codes of conduct and has issued an exposure draft of the first International Management Accounting Statement. (See below.)

International Management Accounting Statements and International Good Practice Guidance establish fundamental principles and provide supporting application guidance to reflect good practice. In addition, the new guidance signposts other sources of information, such as those developed by national professional accountancy bodies. The guidance documents may also serve as a leadership tool that professional accountants can use in promoting sound financial and management accounting practices within their organizations.

"The release of the proposed Preface represents the start of a significant work program for the committee," says Edward Chow, Chair of the PAIB Committee. "The new pronouncements will contribute to better decisions in organizations and enhance the level of support to and competence within the global community of professional accountants in business. I encourage professional accountants in business to use these pronouncements to promote good practices in the organizations in which they work."

New Guidance on Developing Codes of Conduct
The PAIB Committee has released the first International Good Practice Guidance, Defining and Developing an Effective Code of Conduct for Organizations. This guidance will assist professional accountants and their organizations in developing and implementing a code of conduct within a values-based culture. It can be downloaded from the IFAC online bookstore at http://www.ifac.org/store. The PAIB Committee welcomes further feedback on this document during the exposure period for the Preface.

Exposure Draft on Project Appraisal Using Discounted Cash Flow
In addition to the above, the PAIB Committee has also issued an ED of a proposed International Management Accounting Statement, entitled Project Appraisal Using Discounted Cash Flow. The proposed International Management Accounting Statement aims to support professional accountants in business in applying and promoting the use of discounted cash flow and net present value to evaluate investments. It sets an international benchmark for using discounted cash flow in project appraisal and provides principles that reflect widely accepted good practice, supported by guidance to facilitate their application. The ED asks for feedback on both the content and approach.

Looking Ahead
Over the next year, the PAIB Committee plans to develop proposed principles-based pronouncements on internal control from a risk management perspective, using cost information effectively, and enterprise governance. The PAIB Committee is also using the proposed International Management Accounting Statement on Project Appraisal Using Discounted Cash Flow to solicit feedback on future topic selections to support this document.

How to Comment
Comments on the proposed Preface and proposed International Management Accounting Statement are requested by September 12, 2007. The EDs may be viewed by going to http://www.ifac.org/EDs. Comments may be submitted by email to EDComments@ifac.org. They may also be faxed to the attention of the PAIB Committee Technical Manager at +1-212-286-9570 or mailed to PAIB Committee Technical Manager at 545 Fifth Avenue, 14th Floor, New York, NY 10017, USA. All comments will be considered a matter of public record and will ultimately be posted on the IFAC website.

Founded in 1977, 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. The organization, through its independent standard-setting boards, sets international ethics, auditing and assurance, education, and public sector accounting standards. Through its Professional Accountants in Business Committee, IFAC issues guidance to encourage high quality performance by professional accountants in business.

Note to Editors:
Attached to this press release is a questions and answers document developed by the Professional Accountants in Business Committee to explain the rationale for and approach to its new program to develop principles-based good practice pronouncements.

The International Federation of Accountants (IFAC) is inviting all participants in the financial reporting supply chain, including investors and other users of financial reports, standard setters, preparers, auditors, academics, and regulators to complete a global survey designed to obtain information that could strengthen the financial reporting process.The survey, which may be completed through July 6, 2007, is part of an IFAC project designed to analyze the financial reporting supply chain and to develop recommendations to further improve the quality of financial reporting. It can be accessed online in Publications & Resources.

Specifically, the survey seeks the views of those in the financial reporting supply chain on corporate governance, financial reporting, and financial auditing and asks what actions they think will further improve the quality of the financial reporting process. The survey will be complemented with a number of in-depth one-on-one interviews.

"The survey and interviews also seek opinions on the usefulness of financial reports and how these reports might be made more relevant, understandable and reliable. This information is especially valuable as, ultimately, it is the financial reports that influence investors and other stakeholders in their decisions about public companies," states project chair Norman Lyle. Mr. Lyle recently retired as Group Finance Director of Jardine Matheson Holdings Limited in Hong Kong and is a former President of the Chartered Institute of Management Accountants (CIMA) in the United Kingdom, an IFAC member body.

This global initiative will evaluate past recommendations made by IFAC to improve the quality of the various links in the financial reporting supply chain, including those expressed in the IFAC reports, Rebuilding Public Confidence in Financial Reporting: An International Perspective(2003) and Challenges and Successes in Implementing International Standards: Achieving Convergence to IFRSs and ISAs (2004). It will also identify newly emerging issues and innovations and develop proposals to further improve the quality of the financial reporting process. A final report will be issued by the end of the year and will be posted on the IFAC website.

Founded in 1977, 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

This International Good Practice Guidance is designed to assist professional accountants and their organizations to develop and implement a code of conduct in a values-based culture.

Good evening, ladies and gentleman.

I'm very happy to be here with you all this evening. I am sure you will join me in thanking our hosts, the Association of Chartered Certified Accountants (ACCA), for the wonderful dinner this evening. I would like also to thank Allen Blewitt, ACCA's Chief Executive, for the invitation to speak with you this evening.

As indicated in its "European Manifesto," the ACCA shares IFAC's focus on education and training, financial reporting, auditing, small business issues and corporate governance. The manifesto makes an important point that I would like to reiterate: "Forming partnerships is key to shaping the EU's future agenda." In addressing so central an issue as regulation of the profession, I believe that it is vital for IFAC, its 155 member bodies worldwide, and regional organizations like FEE, to work in partnership to shape the agenda. As in so many other matters, collaboration in relation to regulation is essential.

Distinguished guests and dearest colleagues, thank you for the privilege of speaking to you today. This is a great occasion for the Polish accountancy profession: the 100th Anniversary of the Accountants Association in Poland (AAP).

Today's celebration of this institution's centenary of life is an extremely significant event. It is a relevant occasion, especially if you consider all that's happened in the history of the country where this institution has operated during these years.

IFACnet, the global, multilingual search engine developed by the International Federation of Accountants (IFAC) and its members, has expanded its resources to address the needs of small and medium accounting practices (SMPs), in addition to professional accountants in business. IFACnet enables SMPs to easily locate information on a wide range of technical, marketing, human resource and other matters, including such topics as succession planning, managing a small firm, staff recruitment and retention, and promoting firm services.

IFACnet has also added three new features to help accountants worldwide stay current on technical, professional and marketplace issues and to make the search engine more user friendly. These include a "Latest News" page with links to a variety of business, management and accounting media and other websites; a search box that enables users to search IFACnet directly from their Internet browser; and a "What's News" section to inform visitors of new IFACnet features and content.

"There are many high quality resources available from within IFAC as well as through collaboration with our members that can help the global accountancy community carry out their professional responsibilities," states Ian Ball, IFAC Chief Executive Officer. "IFACnet's customized search features provide an efficient means to give professional accountants, including SMPs and professional accountants in business, in every part of the world, access to these timely and relevant resources."

Launched in October 2006, IFACnet provides one-stop access to free, high quality guidance, management tools and articles developed by professional accountancy bodies from around the world. Since its launch, IFACnet has attracted nearly 42,000 individuals from more than 190 countries worldwide. Currently, IFAC and twenty-three of its members (see attachment) provide IFACnet with access to information from their websites. In the coming months, new content will continue to be added to IFACnet as it expands the number of participating organizations.

IFACnet can be accessed free-of-charge online and on the websites of participating organizations.

IFAC is the worldwide 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

IFACNET PARTICIPATING ORGANIZATIONS
(As of March 30, 2007)

American Institute of Certified Public Accountants
Association of Chartered Certified Accountants
CGA Canada
Chartered Institute of Management Accountants
CMA Canada
Consiglio Nazionale dei Dottori Commercialisti
CPA Australia
Hong Kong Institute of Certified Public Accountants
International Federation of Accountants
Institute of Certified Public Accountants in Ireland
Institute of Certified Public Accountants of Singapore
Institute of Chartered Accountants in Australia
Institute of Chartered Accountants in England & Wales
Institute of Chartered Accountants in Ireland
Institute of Chartered Accountants of India
Institute of Chartered Accountants of Pakistan
Institute of Chartered Accountants of Scotland
Institute of Management Accountants
Japanese Institute of Certified Public Accountants
Koninklijk Nederlands Instituut van Registeraccountants
Malaysian Institute of Accountants
Malta Institute of Accountants
South African Institute of Chartered Accountants
Union of Chambers of Certified Public Accountants of Turkey