On November 30, 2011, IFAC and members of the international development community signed MOSAIC: Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration. MOSAIC sets out the basis for improving cooperation and collaboration between IFAC, international donors, and the international development community. The Memorandum of Understanding will provide the foundations for increasing the capacity of professional accountancy organizations and improve the quality of financial management systems in emerging economies.

The signing ceremony brought together a variety of interests, exhibiting the quality of mutual partnership intended by the wider High Level Forum (from which the New Global Partnership for Effective Development Co-operation emerged). There was a real sense of a deep understanding of the role and value of the MoU to effective development and to effective cooperation between interested parties.

Brian Atwood from the OECD DAC spoke eloquently about the significance of the profession to development across both the public and private sectors and its place in essential infrastructure. He was joined by Warren Allen from IFAC (speech attached below) and Joachim von Amsberg from the World Bank who echoed the importance of this step for both the profession and development partners.

Fredson Yamba from the Zambian Treasury spoke movingly about the rapid growth of a high quality accountancy profession following the formation of the Zambian Institute 30 years ago and its essential place both in government and in the private sector. He was followed by Terence Nombembe who highlighted the value of the parallel MoU which the donor community has with INTOSAI for strengthening supreme audit institutions around the world.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, last week held its 34^th Ordinary Council Meeting in Berlin, Germany. As part of the meeting, IFAC held its annual seminar—which this year focused on Accounting for Crisis: Public and Private Sector Perspectives.

The seminar featured high-profile speakers from organizations including the World Bank, EUROSTAT, the European Court of Auditors, the New Zealand Treasury, and the Chartered Institute of Public Finance and Accountancy. The sovereign debt crisis was the focus of the seminar, with discussions held also on financial management for natural disasters, and public sector accounting.

“Transparency and accountability was one of the key demands of the French Revolution, as well as the key demand of the protesters in the Arab Spring,” commented Prof. Dr. Andreas Bergmann, chair of the International Public Sector Accounting Standards Board, during the seminar.

Ian Ball, chief executive officer of IFAC, reminded the audience that, as early as 2007, IFAC stated that it “is concerned that the standards and regulations governing sovereign issuers are not of sufficient quality to protect investors and ensure the stability of capital markets.”

Speakers focused on government accountability to the financial markets; the need for a common language for fairly describing and assessing the fiscal position of a public entity; the potential of sovereign securities being targets of market abuse, such as insider trading and market manipulation; and the fact that developed countries—not just developing countries—need to make changes.

IFAC is planning a follow-up seminar—The Sovereign Debt Crisis, a Matter of Urgency―from Lessons to Reform—March 19-20, 2012, in Vienna, Austria. The seminar so far has 14 confirmed speakers, including: Vincenzo LaVia, World Bank Group; Göran Persson, Former Prime Minister of Sweden; James Turley, Ernst & Young; Nicolas Véron, Peterson Institute for International Economics; and Hon. David Walker, Comeback America Initiative and Former Comptroller General of the U.S.

“One of the vital features of IFAC is our ability to bring together ideas and insights from 167 member bodies from every region of the world,” said Göran Tidström, president of IFAC. “These presentations and discussions regarding a critical current issue—the sovereign debt crisis and the need for transparent and reliable accounting in the public sector—are an essential factor in forming our collective voice and striving to improve global financial stability, in the public interest.”

Highlights from the Council meeting will be accessible on IFAC’s 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. 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 Accounting Standards Board (IASB) and the International Federation of Accountants (IFAC) announced today an agreement to strengthen their cooperation in developing private and public sector accounting standards.

The IASB is responsible for the development and promulgation of International Financial Reporting Standards (IFRSs), required or permitted for use by companies in more than 100 countries. IFAC supports the independent International Public Sector Accounting Standards Board (IPSASB), which is responsible for developing International Public Sector Accounting Standards (IPSASs). IPSASs are used by an increasing number of public authorities, including national and local governments, agencies and regulatory bodies from around the world, and by many international organizations.

The boards have worked together in the past: many IPSASs are primarily drawn from IFRSs, and the agreement, in the form of a Memorandum of Understanding (MoU), reflects the IASB’s and IFAC’s shared conviction that the transparency provided by high-quality financial reporting standards contributes significantly to the effective functioning of capital markets and sound economic growth. The agreement represents a further commitment to strengthen the cooperation between the two boards, with a view to ensuring greater consistency in their respective standard-setting activities.  

The MoU also acknowledges the ongoing working relationship between the IASB and the International Auditing and Assurance Standards Board (IAASB), which is also supported by IFAC. As part of this relationship, the IAASB seeks to advise the IASB on issues surrounding verifiability and auditability of proposed accounting standards.

The agreement is consistent with the conclusions of the IFRS Foundation Trustees’ strategy review, which called for greater interaction between the IASB and other accounting standard-setting authorities.

Commenting on the agreement, Hans Hoogervorst, Chairman of the IASB, said, “The ongoing financial crisis has shown the importance of transparency in financial reporting by both private and public sector entities. This agreement strengthens the already close ties between the IASB and IFAC  and will serve as a platform for further cooperation.”

IFAC Chief Executive Officer Ian Ball said, “The sovereign debt crisis has exposed the risk to financial stability from poor quality financial reporting by governments, and demonstrated that transparency is a prerequisite for confidence. International Public Sector Accounting Standards are the benchmark for financial reporting in the public sector and the means for governments to signal their commitment to transparency. This agreement accelerates the existing cooperation between the two boards and enhances the IPSASB’s ability to continue to develop high-quality standards.”

The MoU is available here.

About the IASB
The IASB was established in 2001 and is the standard-setting body of the IFRS Foundation, an independent, private sector, not-for-profit organisation. The IASB is committed to developing, in the public interest, a single set of high quality global accounting standards that provide high quality transparent and comparable information in general purpose financial statements. In pursuit of this objective the IASB conducts extensive public consultations and seeks the cooperation of international and national bodies around the world. The IASB has 15 full-time members drawn from 11 countries and a variety of professional backgrounds. By 2012 the Board will be expanded to 16 members. Board members are appointed by and accountable to the Trustees of the IFRS Foundation, who are required to select the best available combination of technical expertise and diversity of international business and market experience. In their work the Trustees are accountable to a Monitoring Board of public authorities. For more information visit www.ifrs.org

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), the global organization for the accountancy profession with members and associates in 127 countries, has issued its Notice of the Call for Nominations to IFAC Boards and Committees for 2013.

For the first time, all vacancies on the public interest activity standard-setting boards* are open for nominations by the public. This change is due to IFAC’s efforts to ensure a transparent approach to filling available positions, while also achieving gender, regional, and professional balance, and is in response to the Monitoring Group’s 2010 report regarding the IFAC Reforms.

Both the Notice of the Call for Nominations and its companion guide, Developing a Nominations Strategy, are designed to help IFAC stakeholders identify the most qualified person for nomination to each available position on the boards and committees. These in-depth documents, located on the IFAC website, contain strategic and practical advice for nominating organizations and other individuals, which allow them to make more informed decisions in their selections and to understand the requirements and expectations of the nominees.

Each year, approximately one-third of the 155 positions on the boards and committees have openings, though for some of those positions serving members may be reappointed. For more information about the Nominating Committee, its due process, or for guidance in selecting the best candidate, please visit www.ifac.org/about-ifac/structure-governance/nominating-committee.

The official Call for Nominations for IFAC Boards and Committees for 2013 will be issued on January 15, 2012, and nominations may be submitted from January 15 to March 15, 2012. All applications should be submitted electronically via IFAC’s nominations database; instructions are provided on page five of the Call for Nominations.

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.

* The public interest activity standard-setting boards include the International Accounting Education Standards Board, the International Auditing and Assurance Standards Board, and the International Ethics Standards Board for Accountants.

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The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, today announced at the IFAC Council meeting in Berlin, Germany, that five new members have been appointed to the IFAC Board:  Ms. Rachel Grimes, Mr. Ahmadi Hadibroto, Mr. Ganapathy Ramaswamy, Mr. Makoto Shinohara, and Mr. Masum Turker. The IFAC Council also re-elected Mr. Steven Vieweg for a second term of service.

These appointments bring additional diversity and balance with respect to gender, geographical region, and professional experience.

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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Note to Editors – IFAC Board Members November 2011-November 2012:

Göran Tidström (President)
Warren Allen (Deputy President)
Jelil Bouraoui, Tunisia
Ramon Casals, Spain
Kevin Dancey, Canada
Ingrid Doerga, Netherlands
Ana Maria Elorrieta, Brazil
Rachel Grimes*, Australia
Ahmadi Hadibroto*, Indonesia
Robert Harris, United States
Robert Hodgkinson, United Kingdom
Japheth Katto, Uganda
Olivia Kirtley, United States
Norbert Pfitzer, Germany
Jacques Potdevin, France
Ganapathy Ramaswamy*, India
Marta Rejman, United Kingdom
Roberto Resa, Mexico
Makoto Shinohara*, Japan
Masum Turker*, Turkey
Steven Vieweg**, Canada
Zhiguo Yang, China

* New IFAC Board members as of November 2011
** IFAC Board member reappointed for a second term in November 2011

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, today presented the IFAC International Gold Service Award to Sir David Tweedie and Stephen Zeff. The awards were presented at IFAC’s annual Council Meeting in Berlin, Germany, by Göran Tidström, president of IFAC.

The IFAC International Gold Service Award recognizes outstanding contributions to the accountancy profession.

In his remarks, Mr. Tidström highlighted Sir David Tweedie’s substantial contributions to convergence and to restoring confidence in financial reporting in the wake of the global financial crisis. In particular, in his role as chairman of the International Accounting Standards Board (IASB), he was tireless in promoting the adoption and implementation of International Financial Reporting Standards (IFRS) as the first truly global, high-quality set of accounting standards. He led the IASB during the implementation of IFRS by the European Union in 2005 and the development and publication of IFRS for Small- and Medium-Sized Entities (SMEs) in 2009. His work has helped improve accounting practices around the world, especially in countries where there is no tradition of accounting standards.

Tidström also highlighted the important contributions made by Stephen Zeff, a professor at Rice University, to the understanding of how the accounting profession, and financial reporting in particular, has developed internationally in recent decades. Zeff is a leading international expert on the history of financial reporting, and his historical perspective reflects several themes, among them the historical development of the standard-setting process, the evolution of accounting thought, and the maturing of the profession and practice of auditing. His research and published work addressing the unique problems and challenges confronting the accountancy profession has contributed greatly to the profession’s development worldwide.

“I am honored to present the IFAC International Gold Service Award to Sir David Tweedie and Stephen Zeff,” said Göran Tidström. “Their dedication and achievements have strengthened the profession internationally and exemplify IFAC’s vision: that the global accountancy profession is recognized as a valued leader in the development of strong and sustainable organizations, financial markets, and economies.”

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. 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 Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, today announced at the IFAC Council meeting in Berlin, Germany, that four new associates were admitted to the organization: Chamber of Professional Accountants of the Republic of Kazakhstan (Kazakhstan), Institute of Certified Accountants of Montenegro (Montenegro), Instituto Salvadoreño de Contadores Públicos (El Salvador), and Ordre des Experts-Comptables et Comptables Agréés du Bénin (Benin). One existing associate was admitted to the organization as a member: Institute of Financial Accountants (United Kingdom). With the admission of these new associates and move of an associate to a member—along with the merger of two Danish professional accountancy organizations, which took place in May 2011—IFAC now has 167 members and associates in 127 countries.

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 International Good Practice Guidance is designed to help professional accountants in business use predictive business analytics to identify new opportunities for growth and improvement in their organizations, as well as to highlight areas for corrective actions and strategy adaptations. Predictive business analytics can help any organization select the appropriate actions and best decisions to improve performance and achieve sustainable organizational success.

The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has issued new International Good Practice Guidance, Predictive Business Analytics: Improving Business Performance with Forward-Looking Measures. The guidance is designed to help professional accountants in business working in commerce, industry, financial services, education, and the public and not-for-profit sectors, as well as their organizations, embrace predictive business analytics to help develop and execute strategy.

Professional accountants in business can use predictive business analytics to identify new opportunities for growth and improvement in their organizations, as well as to highlight areas for corrective actions and strategy adaptations. Predictive business analytics can help any organization select the appropriate actions and best decisions to improve performance and achieve sustainable organizational success.

“Predictive business analytics is a tool that professional accountants should use to help their organizations better understand likely future performance outcomes,” said Roger Tabor, chair of the PAIB Committee. “Professional accountants in business should be able to assist their organizations in making the most of predictive business analytics and forward-looking indicators of performance to improve strategy and performance management enterprise-wide.”

This International Good Practice Guidance assists professional accountants in business as they contend with rising expectations from their organizations. 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, executives, managers, and operational staff require higher-quality information from professional accountants to support strategic and operational decision making.

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.

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The Small and Medium Practices (SMP) Committee of the International Federation of Accountants (IFAC) today released the third edition of its Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (ISA Guide). Intended to help practitioners understand and efficiently apply the clarified ISAs to audits of small- and medium- sized entities (SMEs), the updated guide features a number of refinements to the technical content and presentation.

“Practitioners in many jurisdictions have begun using the clarified ISAs, and effective implementation of these standards is key to audit quality,” said SMP Committee Chair Sylvie Voghel. “The ISA Guide should help practitioners conduct high-quality, cost-effective audits of SMEs, thereby contributing to the quality of the profession and our mission to serve the wider public interest.”

The comprehensive implementation guide offers a practical “how-to” approach for conducting risk-based audits of SMEs. First issued in 2007 and developed with the Canadian Institute of Chartered Accountants, it is designed for use by all practitioners, whether or not they are already familiar with the ISAs. Volume 1 covers the basic concepts of a risk-based audit in conformance with the ISAs. Volume 2 contains practical guidance on performing SME audits, including two illustrative case studies—one of an SME audit and one of a micro-entity audit.

The updated ISA Guide can be downloaded free of charge from the SMP Publications and Resources area of the IFAC website. Filter by language to find translations of previous editions of the guide, which were conducted by member bodies and other organizations. Visit the Small and Medium Practices pages for access to additional relevant resources from IFAC and others (see Relevant Links—Implementation Resources). For access to the clarified ISAs, see the IAASB Clarity Center.

About the SMP Committee
The SMP Committee of the International Federation of Accountants represents the interests of professional accountants operating in small- and medium-sized practices and other professional accountants who provide services to small- and medium-sized entities (SMEs). The committee develops guidance and tools, and works to ensure the needs of the SMP and SME sectors are considered by standard setters, regulators, and policy makers. The committee also speaks out on behalf of SMPs to raise awareness of their role and value, especially in supporting SMEs, and the importance of the small business sector overall.

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

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