The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has released its 2006 Articles of Merit, a collection of award-winning international articles on topics such as performance measurement, sustainability and corporate social responsibility, and the changing roles of accounting and finance professionals. This collection includes 10 previously published articles that were selected by the PAIB Committee as part of its annual Articles of Merit Award Program for Distinguished Contribution to Management Accounting.

The winning article for 2006 is "Performance Measures in Supply Chains" by Kim Langfield-Smith and David Smith, which was first published in CPA Australia's Australian Accounting Review. The article examines the benefits and challenges of supply chain management. Other articles of outstanding merit were first published in the American Institute of Certified Public Accountants' Journal of Accountancy; the Chartered Institute of Management Accountants' (UK) Financial Management; CMA Canada's CMA Management, CPA Australia's Australian Accounting Review; the Institute of Chartered Accountants in England and Wales' Performance Measurement, Finance & Management Special Report; and the Institute of Management Accountants' (US) Strategic Finance.

The 2006 Articles of Merit, together with past issues, may be downloaded from the IFAC online bookstore: https://www.ifac.org/store. The PAIB Committee serves IFAC member bodies and the more than one million professional accountants worldwide who work in commerce, industry, the public sector, education, and the not-for-profit sector. Its aim is to enhance the profession by encouraging and facilitating the global development and exchange of knowledge and best practices.

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's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. Through its Professional Accountants in Business Committee, IFAC also issues guidance to encourage high-quality performance by professional accountants in business.

This information paper provides an overview of enterprise sustainability and sets out the business/financial case for addressing sustainable development at the enterprise level in terms of the risks that sustainable development poses and the opportunities which it brings. It also seeks to identify the main sustainability related roles which the professional accountant in business might occupy, either today, tomorrow or at some more distant future time.

This information paper features interviews conducted by Robert Bruce, a leading accountancy journalist, with professional accountants operating in business throughout the world to seek their views on the role of professional accountants in business in sustainability.

This information paper reviews current developments and some of the latest thinking in the area of internal control.

An important objective of the International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the International Federation of Accountants (IFAC), is to provide auditors with clear guidance on matters of independence. In keeping with this commitment, the IESBA has revised the Code of Ethics for Professional Accountants by updating the definition of a network firm. Network firms are required to be independent of an audit client of another firm within the network.

"The revised definition focuses on how networks operate and how they present themselves to third parties," states Richard George, IESBA Chair. "The public has a right to expect that when firms are part of a network the independence requirements apply to the other firms within the network. This revision provides clear guidance for firms and contains additional information on the application of the definition."

The revised definition is consistent with the definition in the European Union's Eighth Company Law Directive. It would classify firms as network firms if the firms belong to a larger structure that is aimed at cooperation and is clearly aimed at profit or cost sharing, or shares common ownership, control or management, common quality control policies and procedures, common business strategy, the use of a common brand-name or a significant part of professional resources. The revised definition is effective for assurance reports dated on or after December 31, 2008. The Code of Ethics for Professional Accountants and the revision can be downloaded from the IFAC online bookstore at https://www.ifac.org/store/Category.tmpl?Category=Ethics.

About the IESBA and IFAC

The IESBA develops ethical standards and guidance for use by professional accountants. It encourages member bodies to adopt high standards of ethics for their members and promotes good ethical practices globally. The Public Interest Oversight Board oversees the activities of the IESBA and, as one element of that oversight, establishes the criteria for its due process and working procedures.

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's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, 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.

Earlier this month, over 130 people from 35 countries attended the International Federation of Accountants' (IFAC's) first global forum focused entirely on small- and medium-sized entities (SMEs) and small and medium accounting practices (SMPs). Co-hosted by the Hong Kong Institute of Certified Public Accountants and the Confederation of Asian and Pacific Accountants, the forum provided an opportunity for national and regional accountancy organizations, representatives of SMEs and SMPs, and international standard setters, among others, to discuss the challenges and opportunities facing SMEs and SMPs and programs and initiatives that could best support them.

Participants identified two significant challenges facing SMEs and SMPs: SMEs need financial reporting standards that are appropriate for their users' needs and reduce the associated cost of compliance; and, in an increasingly globalized economy, SMPs should continue to explore new ways to support the growth and accountability of SMEs.

"Small- and medium-sized enterprises drive economic growth, foster innovation and provide employment in developed and developing countries around the world. IFAC fully recognizes this role and is committed to supporting them at an international level," emphasizes IFAC President Graham Ward. "The outcomes of the forum will be considered at the IFAC Board meeting in September so that we can proceed with acting on the recommendations that were presented."

IFAC SMP Committee Chair Sylvie Voghel, who also chaired the forum, outlined IFAC's approach to supporting SMPs. "The SMP Committee is taking a two-pronged approach to helping SMEs and SMPs converge and comply with international auditing and accounting standards. On the one hand, we are helping to shape the form and content of those standards and on the other, we are dedicated to providing practical assistance to SMPs and SMEs that have to use them."

Current projects include publishing an International Standards on Auditing Guide for SMEs and developing a web-based knowledge resource for SMPs. Additionally, IFAC regularly responds to exposure drafts of international standard setters where an SMP or SME focus is needed. For more information about IFAC initiatives to support SMPs and SMEs, visit its website at www.ifac.org. All presentations made at the SMP Forum are also available from the IFAC website through the SMP Committee home page.

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's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, 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.

I am delighted to be here and to have the privilege to speak to you today and I am heartened by the warm welcome that Ann, my wife, and I have received. There is no question that the accountancy profession has a unique, critical and practical role to play in building stronger and more stable economies around the globe. In order to carry out this role fully, however, we need to continue to enhance confidence in our profession and to build public trust. Investor confidence and public trust empowers our profession. Without it, the credibility of the information we produce, indeed the future of our profession itself, is put at risk. Wherever we work we cannot afford to take this risk.

I am delighted to be here and to have the privilege to speak to you today and I am heartened by the warm welcome that Ann, my wife, and I have received. There is no question that the accountancy profession has a unique, critical and practical role to play in building stronger and more stable economies around the globe. In order to carry out this role fully, however, we need to continue to enhance confidence in our profession and to build public trust. Investor confidence and public trust empowers our profession. Without it, the credibility of the information we produce, indeed the future of our profession itself, is put at risk. Wherever we work we cannot afford to take this risk.

I am delighted to be here and to have the privilege to speak to you today and I am heartened by the warm welcome that Ann, my wife, and I have received. There is no question that the accountancy profession has a unique, critical and practical role to play in building stronger and more stable economies around the globe. In order to carry out this role fully, however, we need to continue to enhance confidence in our profession and to build public trust. Investor confidence and public trust empowers our profession. Without it, the credibility of the information we produce, indeed the future of our profession itself, is put at risk. Wherever we work we cannot afford to take this risk.

Good morning ladies and gentlemen. I am delighted to be with you here in Hong Kong today to discuss the International Federation of Accountants’ commitment to small- and medium-sized accounting practices (SMPs) and to small and medium entities (SMEs). It is a commitment which our entire organization, including the officers, board, other committees and staff, take very seriously indeed and one which we believe will lead to meaningful, practical and unprecedented international support.