The International Auditing and Assurance Standards Board (IAASB) today released a proposed new assurance standard that addresses the process of compiling pro forma financial information included in prospectuses. Recognizing the increasingly integrated nature of global capital markets and the importance of pro forma financial information in the public's investment decisions, the newly proposed standard is designed to enhance public confidence in how such financial information is produced.

The proposed standard, Assurance Reports on the Process to Compile Pro Forma Financial Information Included in a Prospectus, deals with information-necessary in many forms of domestic and cross-border securities offerings-that illustrates the impact of an event or transaction on an issuer's financial information. It provides comprehensive guidance on the nature and extent of a practitioner's work when reporting on whether the process of compiling pro forma financial information has been properly followed. It also covers related engagement acceptance and reporting considerations, and provides an illustrative report arising from such an engagement.

"Our research indicates that many jurisdictions around the world need a common, high-quality standard that can be consistently, globally applied. Our goal, therefore, is to guide and contribute to the quality of practice in an area of great importance to capital markets," said Arnold Schilder, Chairman of the IAASB.

While all stakeholders are invited to comment on the proposed ISAE 3420, the IAASB recognizes that pro forma financial information is of particular interest and relevance to issuers, investors, analysts, professionals working at securities exchanges, and regulators. Accordingly, the IAASB invites respondents from these constituencies in particular to comment on the proposal, including the content of the illustrative practitioner's report.

"Internationally, investors, regulators, and other stakeholders want and expect consistent, quality work by assurance practitioners, as well as clear and understandable reporting. Over the years, however, different countries have developed different practices in relation to reporting on the process of compiling this type of information, and this is a situation that is not sustainable in the public interest," noted James Gunn, IAASB Technical Director. "The proposed standard seeks to address this issue by helping to create a level playing field for practitioners for such engagements, thereby enabling them to better meet the expectations of investors, regulators, and others."

How to Comment
To access the exposure draft or submit a comment, visit the IAASB's website at www.iaasb.org/ExposureDrafts.php. Comments on the exposure draft are requested by September 30, 2010.

About the IAASB
The IAASB (www.iaasb.org) 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 IFAC.

About IFAC
IFAC (www.ifac.org) 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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board (IPSASB) today released for comment exposure draft (ED) 44, Improvements to International Public Sector Accounting Standards (IPSASs).The International Public Sector Accounting Standards Board (IPSASB) today released for comment exposure draft (ED) 44, Improvements to International Public Sector Accounting Standards (IPSASs).

The release continues the IPSASB's improvements project, an annual undertaking intended to enhance the usability of IPSASs and thus facilitate global convergence. The IPSASB uses the improvements project to make non-urgent but necessary amendments to IPSASs.

ED 44 includes proposed improvements to existing IPSASs to maintain alignment with International Financial Reporting Standards (IFRSs), as well as other general improvements. The proposed amendments are related primarily to requirements for recognition, measurement, and disclosure and do not represent substantive revisions to the content of existing standards.

"Financial reporting in the public sector is dynamic," said Andreas Bergmann, IPSASB Chair. "The IPSASB must continually reassess the IPSASs to ensure that they are relevant and up to date and that they are easy to use by preparers of public sector financial statements."

How to Comment
To access the exposure draft or submit a comment, visit the IFAC website at www.ifac.org/Guidance/EXD-Outstanding.php. Comments on the exposure draft are requested by June 30, 2010.

The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of this exposure draft to their members and employees.

About the IPSASB
The IPSASB (www.ifac.org/publicsector) 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.

About IFAC
IFAC (www.ifac.org) 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 159 members and associates in 124 countries, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

Thank you, Stephan. It's a pleasure to be here this afternoon and good afternoon to you. Like you, I'm contemplating a longer stay here than I anticipated, but it's OK. In fact, it's wonderful.

As you know, [and] as I'm sure speakers have mentioned earlier in this conference, Venice is the place where accounting was invented by Luca Pachioli. And, of course, Venice is famous for a Venetian merchant who opened up the Eastern routes of the trade: Marco Polo. But I'll come back to that in a minute.

First, I'd like to congratulate our host, CNDCEC [Consiglio Nazionale dei Dottori Commercialisti e Degli Esperti Contabili]. I'm sorry, Claudio, I can't say the whole name. I'm an American and Italian just does not flow from my lips. But I would like to thank you for your interest in SMP [small and medium practice] and SME [small- and medium-sized entity] issues.

I know that Italy is a hotbed of entrepreneurialism, where small companies manufacture very high-quality consumer goods and sell them throughout the world. Most of those companies are family owned and most of those companies are served by SMPs.

Italy contributes greatly to IFAC. We have a number [of members] from the [Italian] member body on the IFAC Board and, of course, we have a very important member on the SMP Committee. Italy has also done the translation of the ISAs into Italian, which [will be] critical for adoption of the ISAs by the European Union.

I'd also like to thank FEE [Fédération des Experts Comptables Européens]. I believe that FEE defines for IFAC what a regional organization ought to be. It's certainly the largest and, I believe, the best organized of all of the IFAC-recognized regional bodies. I congratulate you on holding this conference, and I believe that you are doing something very important for one of my pet projects.

Why is it one of my pet projects? I do not pretend to be an SMP. My firm has over 1,500 professionals in it. But, we serve SMEs. We serve a lot of SMEs . We believe they are critical to the functioning of the U.S. economy and critical to the functioning of almost all economies, and I will again come back to that.

Video Interviews from the Event

http://www.press.cndcec.it/Portal/WebTV/Evento.aspx?Id=e24fdc3c-cfc1-4056-83fa-62dcda1f5830

http://www.press.cndcec.it/Portal/WebTV/Evento.aspx?Id=106cea8b-75bc-4b8d-89e2-bab5e0d6a698

The International Auditing and Assurance Standards Board (IAASB) today released its 2009 annual report. The report highlights the completion of the landmark Clarity Project surrounding the IAASB's International Standards on Auditing (ISAs), the development of adoption and implementation resources for the ISAs, and the launch of innovative new projects to address emerging issues.The International Auditing and Assurance Standards Board (IAASB) today released its 2009 annual report. The report highlights the completion of the landmark Clarity Project surrounding the IAASB's International Standards on Auditing (ISAs), the development of adoption and implementation resources for the ISAs, and the launch of innovative new projects to address emerging issues.

"During a period of great financial instability and uncertainty, auditors and assurance practitioners faced significant challenges. By seeking public input, responding to emerging needs, and supporting the implementation of global standards, the work of the IAASB continued to contribute to the restoration and maintenance of public confidence in information used for decision making," said IAASB Chairman Arnold Schilder. "This has required diligent adherence by the IAASB to its public interest mandate, which is now entrenched in how the IAASB operates."

This first year of the IAASB's 2009-2011 strategy and work program saw the IAASB produce a range of tools and resources to assist auditors in implementing the now-effective suite of Clarified ISAs. Recognizing the significant demand from auditors and preparers for additional guidance in light of the financial crisis, this work program included a project to develop guidance on auditing complex financial instruments. The year 2009 also marked an important transition to new projects to address a wide range of information needs, such as greenhouse gas emissions, pro forma financial information included in prospectuses, controls at service organizations, and XBRL. The board's standard-setting efforts to address the needs of small- and medium-sized entities, and those who provide services to them, were also progressed in 2009 with the initial steps to update and revise the IAASB's standards addressing review and compilation engagements.

Incorporating public input is essential to ensuring that the IAASB has insights to the different perspectives of international regulators and organizations, national auditing standard setters, practitioners, academia, and other stakeholders. Its commitment to active engagement with stakeholders is reflected in the various outreach activities described in the report that the IAASB participated in during 2009.

The annual report includes a report from the Chairman of the IAASB Consultative Advisory Group on the work of the group in providing input to the IAASB. The IAASB also continues to receive oversight from the Public Interest Oversight Board.

The report notes some of the issues the IAASB will address in the coming years, including those arising from today's global economic crisis. To further inform its work program, the IAASB has released an online questionnaire and invites comment on where the IAASB should focus its efforts during 2012-2014.

The 2009 IAASB annual report can be downloaded from www.ifac.org/IAASB/Resources.php#AnnualReports. Readers are also encouraged to visit the new Clarity Center on the IAASB website (web.ifac.org/clarity-center/index) for more information on the Clarity Project and the full suite of standards that came into effect for audits of financial statements for periods beginning on or after December 15, 2009.

About the IAASB
The IAASB (www.iaasb.org) 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 IFAC.

About IFAC
IFAC (www.ifac.org) 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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

The Small and Medium Practices (SMP) Committee of the International Federation of Accountants (IFAC) published an analysis of research on business advisory services provided by SMPs. The extensive analysis includes a review of global research spanning academic studies, practitioner surveys, and interviews of SMP partners.

The analysis suggests that the needs of small- and medium-sized enterprises (SMEs)--the sector commonly served by SMPs--are changing due to an increasingly complex regulatory environment. The needs of SMEs are also changing as their demands shift from the use of SMPs for statutory audit requirements to business advisory services, including forming business plans and financial forecasts, identifying and managing risk, information technology, and business valuation.

Although the number and variety of SMEs continue to expand, evidence suggests that SMEs have difficulty obtaining access to credit and other resources. The analysis shows that SMPs are well-equipped to expand their services to meet the increasing needs of SMEs. The findings highlight that an important way for SMPS to improve their ability to meet these needs is by building referral networks, allowing them to expand the expertise available to their clients. The research suggests that referral networks are currently being underutilized by SMPs.

IFAC SMP Committee Chair Sylvie Voghel, an SME owner-manager herself, commented, "This research, which noted competency, trust and proximity to their clients as key factors underpinning a strong SMP-SME relationship, is an important step in the committee's initiative to learn how SMPs can position and equip themselves to better support SMEs."

The results of the research analysis are presented in the information paper, The Role of Small and Medium Practices in Providing Business Support to Small- and Medium-sized Enterprises, available in the SMP section of IFAC's Publications and Resources site: web.ifac.org/publications. For more information, the IFAC SMP Committee welcomes readers to visit its International Center for Small and Medium Practices at  www.ifac.org/smp, which hosts a collection of relevant links to free resources, including a category devoted to business advisory services. Readers are also encouraged to participate in the SMP/SME Discussion Board, where they may submit their views on the information paper and other issues.

About IFAC
IFAC (www.ifac.org) 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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

This Paper analyses the literature and evidence base on the role of accounting practices, and in particular small and medium practices (SMPs) in providing business support to small- and medium-sized enterprises (SMEs).

The International Auditing and Assurance Standards Board (IAASB) is launching an online questionnaire to inform the development of its strategic direction and related work program for 2012-2014. The initiative is part of the IAASB's broader mandate to consult with key stakeholders to determine which issues should be addressed by the board.The International Auditing and Assurance Standards Board (IAASB) is launching an online questionnaire to inform the development of its strategic direction and related work program for 2012-2014. The initiative is part of the IAASB's broader mandate to consult with key stakeholders to determine which issues should be addressed by the board.

"Input from the public is an important part of the IAASB's due process," said Arnold Schilder, IAASB Chair. "It is essential that the IAASB reach out to the broadest group possible to solicit and incorporate outside views. This helps the board determine its future strategic direction and-at the same time-ensures that the board addresses the most relevant issues relating to auditing and financial reporting."

The questionnaire is the first stage of the IAASB's 18-month consultation process.  Through the survey, the IAASB seeks feedback on the challenges facing the accountancy profession, the IAASB's current strategic focus on the development, adoption, and implementation of standards, the needs of small and medium practices, and current and future projects, among other topics.

The results of the questionnaire will be used to develop a formal Consultation Paper, to be issued in December 2010, outlining the IAASB's strategic focus and the potential projects that might best support this focus.

The IAASB encourages all those with an interest in IAASB-developed international pronouncements to submit responses, which are requested by May 14, 2010.

About the IAASB
The IAASB (www.iaasb.org) 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 IFAC.

About IFAC
IFAC (www.ifac.org) 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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants (IFAC) has released the 2010 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, and the 2010 Handbook of the Code of Ethics for Professional Accountants.The International Federation of Accountants (IFAC) has released the 2010 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, and the 2010 Handbook of the Code of Ethics for Professional Accountants.

The Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements includes the International Auditing and Assurance Standards Board's (IAASB) complete set of clarified International Standards on Auditing (ISAs) and International Standard on Quality Control (ISQC) 1 now in effect. It also includes the IAASB's standards on review, other assurance, and related services, a glossary, and a preface to the international standards.

The Handbook of the Code of Ethics for Professional Accountants contains the Code of Ethics for Professional Accountants (the Code), which has been revised by the International Ethics Standards Board for Accountants (IESBA) for improved clarity and strengthened independence requirements. The revised Code becomes effective on January 1, 2011, with early adoption permitted.

How to Order
The handbooks can be downloaded free of charge in PDF format or purchased in print from IFAC's Publications and Resources site: web.ifac.org/publications. Print copies of the handbooks are available as a three-piece boxed set for US$185.00 plus shipping. Discounts are available for students, academics, and individuals living in developing countries, as well as for orders of 10 or more copies. Orders can also be placed by calling IFAC at +1 (212) 471-8722.

About the IAASB and IESBA
The IAASB (www.iaasb.org) 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 IESBA (www.ifac.org/IESBA) develops ethical 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 IESBA, and the IESBA Consultative Advisory Group, which provides public interest input into the development of the Code.

The structures and processes that support the operations of the IAASB and IESBA are facilitated by IFAC.

About IFAC
IFAC (www.ifac.org) 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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants (IFAC) has released the 2010 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, and the 2010 Handbook of the Code of Ethics for Professional Accountants.

The Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements includes the International Auditing and Assurance Standards Board's (IAASB) complete set of clarified International Standards on Auditing (ISAs) and International Standard on Quality Control (ISQC) 1 now in effect. It also includes the IAASB's standards on review, other assurance, and related services, a glossary, and a preface to the international standards.

The Handbook of the Code of Ethics for Professional Accountants contains the Code of Ethics for Professional Accountants (the Code), which has been revised by the International Ethics Standards Board for Accountants (IESBA) for improved clarity and strengthened independence requirements. The revised Code becomes effective on January 1, 2011, with early adoption permitted.

How to Order
The handbooks can be downloaded free of charge in PDF format or purchased in print from IFAC's Publications and Resources site: web.ifac.org/publications. Print copies of the handbooks are available as a three-piece boxed set for US$185.00 plus shipping. Discounts are available for students, academics, and individuals living in developing countries, as well as for orders of 10 or more copies. Orders can also be placed by calling IFAC at +1 (212) 471-8722.

About the IAASB and IESBA
The IAASB (www.iaasb.org) 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 IESBA (www.ifac.org/IESBA) develops ethical 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 IESBA, and the IESBA Consultative Advisory Group, which provides public interest input into the development of the Code.

The structures and processes that support the operations of the IAASB and IESBA are facilitated by IFAC.

About IFAC
IFAC (www.ifac.org) 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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.