The International Public Sector Accounting Standards Board (IPSASB) today released for comment the Consultation Paper, Public Sector Combinations. The IPSASB considers guidance on reporting public sector combinations necessary to meet the objectives of financial reporting, which are to provide information that is useful to users of General Purpose Financial Reports (GPFRs) for accountability and decision-making purposes. This project aims to present a principles-based approach to developing guidance for public sector entities on accounting for public sector combinations.

The Consultation Paper describes different types of public sector combinations and explores possible approaches to recognizing and measuring public sector combinations in GPFRs. It proposes a distinction between acquisitions and amalgamations. The Consultation Paper then considers approaches to combinations of entities and operations that are not under common control and of entities and operations that are under common control.

"Acquisitions and amalgamations occur regularly in the public sectors around the world. This Consultation Paper is the first step in proposing financial reporting requirements that will ensure that these transactions are reported in a consistent and transparent manner, ensuring that users’ are able to obtain the information needed to evaluate the nature and financial effect of a public sector combination," explained IPSASB Chair Andreas Bergmann.

How to Comment
To access the Consultation Paper and the At-a-Glance document, which provides a summary of the Consultation Paper, or to submit a comment letter, please visit the IPSASB website at www.ipsasb.org. Comments on the Consultation Paper are requested by October 31, 2012. The IPSASB encourages IFAC members, associates, and regional organizations to promote the availability of this Consultation Paper to their members and employees.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC. The IPSASB receives support (both financial and in-kind) from the World Bank, the Asian Development Bank, the United Nations and the governments of Canada, China, New Zealand, and Switzerland.

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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Ten professional accountancy bodies from the Central and East European region gathered for the 6th Cross-Border Meeting in Chisinau, Republic of Moldova, on June 21-23, 2012. IFAC Member Body Development Senior Technical Manager Szymon Radziszewicz gave the presentation The Role and Responsibilities of Professional Associations in the Regulation of the Accounting Profession, addressing the applicability framework of the Statements of Membership Obligations and need for a balanced approach in regulation of the accountancy profession, as well as the how the accountancy profession contributes to economic stability and growth. Representatives from the World Bank, Fédération Internationale des Experts-Comptables Francophones, and PAOs in Belgium and the Netherlands also spoke. While in Moldova, Mr. Radziszewicz also met with the Minister of Finance and Audit Oversight Council to discuss difference scenarios for regulation of the accountancy profession in Moldova. Additional materials from the meeting are available through the Association of Professional Accountants and Auditors of the Republic of Moldova's website.

The IAASB’s chairman, Arnold Schilder, and Deputy Chair Dan Montgomery are featured in the Wall Street Journal’s CFO Report, where they discussed what the auditor can add to the understanding of financial statements.

Presentation by Warren Allen, IFAC Deputy President, to the Institute of Chartered Accountants of the Caribbean (ICAC)'s 30th Caribbean Conference of Accountants on June 22, 2012. The presentation discusses IFAC, the partnership between IFAC and ICAC, and challenges facing the accountancy profession globally.

The World Bank 2012 Fiduciary Forum, Public Financial Accountability in a Changing World: Delivering Results and Managing Risks, was held in Alexandria, Virginia, in May 2012. This biennial event brings together approximately 600 financial management, procurement, and World Bank Vice Presidential Unit staff members, the majority of whom are based in country offices. Participation also included representatives of countries IFAC has a presence in, either through an active member or a development partner.

Warren Allen, IFAC Deputy President, was a speaker at the plenary session, Towards an Integrated Reporting Model to Measure Sustainable Development: Connective Systems, People, and Information. The session addressed the issue of integrating financial, environmental, social, governance, and other important disclosures in an effort to promote sustained and equitable development in response to increasing considerations of financial reporting as a component of reporting and demands from investors for more information in these areas.

Sylvia Tsen, IFAC Director, Quality and Member Relations, was also a panelist during the session “Building Systems and Investing in Skills and Talent,” which focused on education and skills growth for the development of a strong accountancy profession. Additionally, Szymon Radziszewicz, IFAC Senior Technical Manager, gave a presentation during “Accountancy Developments in Africa” session.

The International Federation of Accountants today announced that Jörgen Holmquist has been appointed as the first independent chair of the International Ethics Standards Board for Accountants (IESBA), beginning September 2012 for a three-year term. The appointment has been approved by the Public Interest Oversight Board*.

“Jörgen brings a wealth of experience to the position of independent chair of the IESBA,” said IFAC President Göran Tidström. “In his past roles, as well as in his current position as a public member of the IESBA, he has shown strong leadership skills, technical competence, and a commitment to the IESBA and its mission to protect the public interest. I am confident that, under his leadership, the IESBA will continue to make a highly effective contribution to ethics standard setting as well as, importantly, adoption and implementation. I would like also to acknowledge the exemplary contribution and commitment Ken Dakdduk brought to the role, and to his position on the board, over the past seven years.” 

Mr. Holmquist has been a public member of the IESBA since 2011. He served as Director General, DG Internal Market and Services, European Commission from 2007 to 2010, where he was responsible for developing the European Union (EU) regulatory response to the financial crisis, including legislation and policy concerning accounting and auditing. Before joining the European Commission in 1997, he served in the Swedish Ministry of Finance for twenty years. Mr. Holmquist holds a degree in Economics and Mathematics from the University of Stockholm, Sweden and is a Fellow of the Weatherhead Center for International Affairs at Harvard University.

The appointment of an independent chair for the IESBA was recommended by the Monitoring Group in its “Review of the IFAC Reforms — Final Report,” which was issued in 2010.

In his role as chair, Jörgen Holmquist will provide leadership to the IESBA. A key function of the chair is to enable, encourage, and promote a deeper understanding by stakeholders and the public of the strategies and activities of the IESBA. The chair also leads the strategic direction of the IESBA, working closely with IESBA staff, and facilitates the deliberative and consultative processes that underpin the authority of the IESBA and the legitimacy of its standards and activities. In addition, the chair is involved in developing and maintaining effective relationships with national standard setters, regulators, and other key stakeholders.

“Convergence to a single set of high-quality ethical standards will contribute to efficient, sustainable, and vibrant capital markets and is in the public interest,” Jörgen Holmquist commented. "I look forward to advancing the IESBA’s current initiatives, as well as the recently announced additional workstreams, enhancing relationships with national standard setters, regulators, governments, and the public and promoting adoption and implementation of the Code."

*Notes to Editors
The international Public Interest Oversight Board (PIOB) was established in February 2005 to ensure that international auditing and assurance, ethics, and education standards for the accountancy profession are set in a transparent manner that reflects the public interest. The objective of the PIOB is to increase confidence of investors and others that such activities, including the setting of standards by the IESBA, are properly responsive to the public interest. PIOB members are nominated by international institutions and regulatory bodies.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA are facilitated by IFAC. Please visit www.ifac.org/ethics for more information.

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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At the World Bank’s Accountancy Development for Results: On the Road to 2030 (part of the World Bank 2012 Fiduciary Forum), IFAC Senior Technical Manager, Szymon Radziszewicz, gave a presentation during the “Accountancy Developments in Africa” session. The presentation details the importance of the Statements of Membership Obligations (SMOs) as the foundation of the IFAC Compliance Program and how they assist and foster professional accountancy organizations around the world to support and encourage high-quality financial information and inclusive and sustainable economic growth.