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.

The Board of the International Federation of Accountants (IFAC) has approved the reappointment of John Kellas, MA, FCA, as Chair of the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of IFAC. Mr. Kellas has served on the IAASB since October 2000 and as Chair since January 2004 (a position that became full-time on October 1 of that year). His appointment to a second term, beginning January 1, 2007 and ending December 31, 2008, was endorsed by the Public Interest Oversight Board (PIOB), which oversees the IAASB's activities to ensure that they are properly responsive to the public interest.

"We are delighted that John has agreed to accept appointment to a second term as Chair of the IAASB. His leadership has been invaluable over the past three years as he has worked to increase public interest input to the IAASB's standard-setting process, enhance the transparency of that process, and build relationships with national standard setters," states IFAC President Graham Ward.

As Chair of the IAASB, Mr. Kellas will continue to lead the IAASB's efforts to develop high quality International Standards on Auditing and to promote convergence with those standards and their adoption by the European Commission. In addition, he will continue to serve as the primary contact with the IAASB Consultative Advisory Group to ensure that public interest perspectives are fully considered by the IAASB.

"The continuity of the Chairmanship of the IAASB is important at this time as we are in the middle of our major initiative to improve the clarity and effectiveness of our standards. At the same time, the European Commission is considering the adoption of International Standards of Auditing under the revised 8th Directive. We shall therefore be giving close attention to these matters over the next two years, and I look forward to working with the IAASB to bring both to successful conclusions," states John Kellas.

PIOB Chairman Stavros Thomadakis said, "Since the formation of the PIOB in February 2005, we have cooperated closely with John in our oversight of the IAASB. His decision to accept reappointment over this next critical period will ensure that the IAASB continues to focus on important issues that greatly affect the international public interest."

Mr. Kellas served as a member of the United Kingdom Auditing Practices Board from 1991 to 2002. Until his retirement in 2004, he was a partner in KPMG LLP in London, where he headed the Department of Professional Practice from 1990 to 2004.

About the IAASB and IFAC The objective of the IAASB, an independent standard-setting board within IFAC, is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes the criteria for its due process and working procedures.

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. Its 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. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets international ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

* Notes to Editors The IAASB Consultative Advisory Group (CAG) is independent of the International Federation of Accountants. The objective and the scope of activities of the CAG, with the rules for membership, and operating procedures are set out in its terms of reference. The terms of reference and a complete list of CAG member organizations can be found on the IAASB website. The Public Interest Oversight Board (PIOB) was formally established in February 2005 to oversee IFAC's auditing and assurance, ethics, and education standard-setting activities as well as the IFAC Member Body Compliance Program. The objective of the PIOB is to increase confidence of investors and others that such activities, including the setting of standards by the IAASB, are properly responsive to the public interest. PIOB members are nominated by international institutions and regulatory bodies.