As world economies recover from the global financial crisis, the Third Annual Global Leadership Survey of the International Federation of Accountants (IFAC) revealed its membership as vocal advocates for small and midsize businesses, as well as for the adoption of global accounting and auditing standards. It also highlighted corporate governance enhancements in jurisdictions around the world.As world economies recover from the global financial crisis, the Third Annual Global Leadership Survey of the International Federation of Accountants (IFAC) revealed its membership as vocal advocates for small and midsize businesses, as well as for the adoption of global accounting and auditing standards. It also highlighted corporate governance enhancements in jurisdictions around the world.

"Our members took action to assist their jurisdictions during the crisis, lending their expertise to governments and businesses. Through a variety of outreach programs, they also let the public know what a valuable role the professional accountant plays in all the sectors we serve, especially in a time of crisis," says IFAC Chief Executive Officer Ian Ball. Mr. Ball noted that, in October and November 2009, IFAC received 105 responses to its online survey from the presidents and chief executives of accountancy institutes, and regional accountancy organizations and groupings. He adds, "Survey respondents believe that continued emphasis on effective implementation of international accounting and auditing standards and good corporate governance principles are critical issues for the future."

Public sector finance improvements. Because the financial crisis led to many governments' assuming an interventionist role in their economies through providing a range of guarantees and undertaking bailouts of major banks and other institutions, among other actions, the survey sought information on efforts to improve the transparency and accountability of governments for public sector finance. Many respondents reported their countries were in the process of adopting the International Public Sector Accounting Standards (IPSASs), which can provide the reliable information about government finances that is so important in the context of the crisis.

Corporate governance enhancements. When survey participants were asked whether there had been enhancements to corporate governance in their jurisdictions, the majority reported that there had either been improvements, that actions were in process, or that such changes were being considered. In particular, they reported the adoption of the Organisation for Economic Co-operation and Development's (OECD) good governance principles, but there was an extensive range of responses, from making it mandatory for companies of a certain size to create an audit committee, to introducing codes specific to small businesses.

Demand for accountants. IFAC's survey also asked about the demand for accountants throughout the broad spectrum of sectors in which they work, and found that the profession remains attractive to students and those already in the field. According to survey responses, the demand for accountants remains high, worldwide, with growing interest in the government and academic sectors. Participants believe the demand for accountancy professionals will grow in the coming years.

Unity of the profession. Finally, respondents believe in the importance of maintaining the unity of the accountancy profession, in order to play a role in the changing regulation of the financial sector internationally. They said that they believe that IFAC should continue in its roles as a voice of the global profession--such as its memoranda to the G-20 leaders on reform of the global financial system, including special consideration for the needs of SMEs (small and medium entities)--and as a global standard-setter for auditing and public sector accounting, and professional ethics and education. 

The full report is available in the Policy Position Papers and Reports section of IFAC's Publications and Resources site.

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 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 posted an announcement to alert its members, the Forum of Firms, international organizations, and the public about its Call for Nominations to IFAC Boards and Committees in 2011.

Both the Call for Nominations and a companion guide, Developing a Nominations Strategy, are designed to help IFAC find the best person for each available position on its boards and committees, while also achieving a gender, regional, and professional balance. These extensive publications contain strategic and practical advice for nominating organizations, allowing them to make better informed decisions in selecting their nominees and to understand what is expected of them.

Nominations may be submitted from January 15 to March 15, 2010, by sending the completed Candidate Information Form via email to nominations@ifac.org. This form, along with more information about the nominations process and the Help Sheet, which includes detailed information on filling out the form, can be downloaded from the Nominating Committee section of the IFAC website: www.ifac.org/NominatingCommittee. 

If you have any questions, please contact Laura Buijs, Governance Manager, at laurabuijs@ifac.org.   

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 and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

"Enterprise Governance" was chosen as the top article published in 2009 for Professional Accountants in Business (PAIB) by the member bodies of the International Federation of Accountants (IFAC). The Articles of Merit Award Program identifies and promotes outstanding articles on financial and management accounting topics that have previously appeared in the publications of IFAC's 159 member bodies and associates. The articles were selected by IFAC's PAIB Committee and visitors to IFAC's International Center for Professional Accountants in Business.

The 2009 winning article challenges conventional business thinking: Businesses should be more circumspect during a boom and be better prepared to take risks under harsh conditions. It was first published in Financial Management, the monthly members' magazine of the Chartered Institute of Management Accountants.

"Enterprise Governance" and the other top articles form the basis of an annual publication, also called Articles of Merit, which covers the important issues affecting the work of professional accountants worldwide. The publication's nine runner-up articles offer additional advice and insights for professional accountants in business on such topics as capital grants, investment appraisal, and shared services, with useful ideas on matters such as governance and risk management, accounting for sustainability, and writing board reports.

The 2009 Articles of Merit, together with previous publications, can be downloaded free of charge from the Publications & Resources section of the IFAC website. Each of the ten articles may also be downloaded individually.

About IFAC and the PAIB Committee
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.

IFAC's 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. The committee facilitates the global development and sharing of knowledge, develops good practice guidance, and promotes the roles and domain of professional accountants.

At its December 8-11 meeting in Rome, the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) achieved its strategic goal of substantial convergence with the International Financial Reporting Standards (IFRSs) dated December 31, 2008, with a series of new or improved standards.

Three of these new International Public Sector Accounting Standards (IPSASs) deal with financial instruments—in terms of presentation, recognition and measurement, and disclosures. A fourth standard covers intangible assets and an improvements standard makes minor changes to existing IPSASs. They are primarily drawn from IFRSs, with limited changes dealing with public sector-specific issues. In addition, the board approved an exposure draft covering service concessions.

“In the current global economic environment, when governments are increasingly raising debt through the capital markets as a result of their financial interventions in the private sector, the need for certainty in the application of well-developed financial instruments standards has particular urgency,” states Mike Hathorn, Chair of the IPSASB. “Achieving convergence is also crucial to enhancing transparency at this time of large scale government interventions,” he adds.

The December 2009 meeting was the last under Mr. Hathorn’s chairmanship; his three-year term ends on December 31, 2009—a period that has seen a significant increase in momentum in global interest in and adoption of IPSASB standards.  “During the last 12 months in particular, the achievement of the board and its staff in progressing convergence with IFRSs standards has been outstanding—and I am confident that it will meet the increasing needs of the global public sector in the future,” he concludes.

The new standards and exposure draft will be available to download free of charge from the IFAC website (web.ifac.org/publications) in January 2010.

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.

Recognizing the widespread international use of outsourcing, the International Auditing and Assurance Standards Board (IAASB) has released today International Standard on Assurance Engagements (ISAE) 3402, Assurance Reports on Controls at a Service Organization. This new standard addresses reports on the description, design, and operating effectiveness of controls relating to the broad range of services that today's service organizations provide. Such services can range from assisting with processing transactions to performing one or more business functions.

"A single service provided by a service organization can have direct relevance to the quality of financial reports prepared by entities around the globe. Effective controls for delivering the service are therefore essential," says Arnold Schilder, IAASB Chair, adding, "This new standard sets a global benchmark for reporting on controls at a service organization, thereby helping to fulfill the needs of those who use such services and their auditors under International Standards on Auditing (ISAs)."

"ISAE 3402 is the first new assurance standard, other than the ISAs, developed under the IAASB's International Framework for Assurance Engagements," explains James Gunn, IAASB Technical Director. "Therefore, the IAASB will be interested in the experiences of service auditors and others with its implementation and has decided to actively seek feedback in 2013 on implementation of the standard," Mr. Gunn adds.

ISAE 3402 is effective for service auditors' reports covering periods ending on or after June 15, 2011. An overview of this new standard is available in the IAASB section of the new Publications and Resources site.

About the IAASB and IFAC
The IAASB (www.ifac.org/IAASB) 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.

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) has taken a further step in its global convergence program with International Financial Reporting Standards (IFRSs), scheduled for completion by December 31, 2009, by issuing International Public Sector Accounting Standard (IPSAS) 27, Agriculture. IPSAS 27 provides requirements for accounting for agricultural activity.The International Public Sector Accounting Standards Board (IPSASB) has taken a further step in its global convergence program with International Financial Reporting Standards (IFRSs), scheduled for completion by December 31, 2009, by issuing International Public Sector Accounting Standard (IPSAS) 27, Agriculture. IPSAS 27 provides requirements for accounting for agricultural activity.

IPSAS 27 is primarily drawn from the International Accounting Standards Board's International Accounting Standard 41, Agriculture, with limited changes dealing with public sector-specific issues. For example, IPSAS 27 addresses biological assets--such as livestock--held for transfer or distribution at no charge or for a nominal charge to other public sector bodies or to not-for-profit organizations. IPSAS 27 also includes disclosure requirements that are aimed at enhancing consistency with the statistical basis of accounting that governs the Government Finance Statistics Manual.

"Agricultural activity can be significant for the public sector in certain parts of the world, including many developing countries," states Mike Hathorn, Chair of the IPSASB. "This IPSAS provides financial reporting requirements that enhance accountability for such activity and are a further step towards our convergence target."

IPSAS 27 is available to download from the IFAC website (www.ifac.org/Store). The IPSASB encourages IFAC members, associates, regional accountancy bodies, and firms to use these materials and to promote their availability to members and employees. 

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.

There is a growing understanding that future generations of taxpayers will have to deal with the fiscal consequences of current government policies. Concerns about the ability of governments to meet future service delivery and financial commitments for health, pensions, debt-servicing, and other obligations have long existed, but have increased in the current economic environment. Uncertainty over the long-term financial consequences of government interventions, including the bailouts and stimulus packages that have characterized the global financial crisis, has added another dimension to concerns over the long-term sustainability of public finances in many countries.

The International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) has just published a Consultation Paper, Reporting on the Long-Term Fiscal Sustainability of Public Finances. It seeks views on how information on the long-term sustainability of government programs, increasingly available in many jurisdictions, may complement information available in traditional financial statements, thereby increasing transparency and enhancing accountability and decision making.

"The need for understandable information on the long-term sustainability of all governmental programs has become increasingly apparent from the work that the IPSASB has carried out in developing its own public sector conceptual framework and on accounting for social benefits," says Mike Hathorn, Chair of the IPSASB. "There is a growing awareness that such information can be crucial in allowing citizens to evaluate the scale of the fiscal challenges facing governments, so that the impact on future generations can be better understood. This Consultation Paper asks for views on how such information might be reported."

The IPSASB's project has benefited greatly from the work of a task force, including representatives from governments, audit offices, accounting standard-setters, statistical accountants, and international organizations. Projects recently undertaken by the Organisation for Economic Co-operation and Development and the United States Federal Accounting Standards Advisory Board have been particularly valuable.

The Consultation Paper is available to download free of charge from the IFAC website (www.ifac.org/Guidance/EXD-Outstanding.php). The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of this Consultation Paper to their members and employees. 

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 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 posted an announcement to alert its members and the public of its Notice of the Call for Nominations to IFAC Boards and Committees in 2011.The International Federation of Accountants (IFAC) has posted an announcement to alert its members and the public of its Notice of the Call for Nominations to IFAC Boards and Committees in 2011.

Both the Notice of the Call for Nominations and its companion guide, Developing a Nominations Strategy, are designed to help IFAC find the best person for each available position on its boards and committees, while also achieving a gender, regional, and professional balance. These extensive publications contain strategic and practical advice for nominating organizations, allowing them to make more informed decisions in selecting the persons they nominate and to understand what is expected of them.

The actual Call for Nominations for IFAC Boards and Committees in 2011 will be issued on January 15, 2010, and nominations may be submitted from January 15 to March 15, 2010.

If you have any questions, please contact Laura Buijs, Governance Manager, at laurabuijs@ifac.org. For more information about the nominations process, please see www.ifac.org/NominatingCommittee.  

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.

Through its independent standard-setting boards, IFAC develops international standards on ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to support professional accountants in business, small and medium practices, and developing nations. In addition, IFAC issues policy positions on topics in the public interest.

The International Federation of Accountants' (IFAC) 32nd annual Council meeting in Washington, D.C., this week emphasized the urgency of achieving global adoption and implementation of financial standards, especially for accounting and auditing.

Robert L. Bunting, IFAC President, says, "There is no high-quality information without the work of accountants--and certainly no way forward from the global financial crisis without it. What we need is a level playing field in financial reporting. What we do not need is trans-Atlantic accounting arbitrage and political interference in the technical aspects of standard setting. Governments, standard setters, and the accounting profession need to collaborate closely if common high-quality standards in accounting and auditing are to be established, adopted, and well implemented. And that includes accounting standards for governments, many of which have become major investors in the private sector during the crisis."

IFAC's Chief Executive Officer, Ian Ball, adds that IFAC's work in delivering this message to its members and their governments is increasingly important. "We have expressed the importance of global accounting and auditing standards to the G-20 twice this year--before the Leaders' Summits in London and Pittsburgh--and believe that now is the time for action at the country level if we are to achieve what was agreed by the G-20."

These messages were reiterated frequently in workshops and seminars during IFAC's two-day event, hosted by the American Institute of Certified Public Accountants.

The Council's formal deliberations included approval of IFAC's strategic actions for the coming year, which include:

• continuing development of auditing, ethical, accounting education, and public sector accounting standards that meet the public interest;
• promoting the adoption and implementation of these standards;
• exercising IFAC's voice for the global accountancy profession, including input to the G-20 and other key international organizations; and
• addressing the needs of small- and medium-sized entities (SMEs) and seeking to avoid excessive regulatory burdens being placed on this critical economic sector.

The Council approved three new member bodies: Iranian Association of Certified Public Accountants (IACPA); Latvian Association of Certified Auditors (LACA); and Society of Certified Accountant and Auditors of Kosovo (SCAAK).

In addition, two associates were approved: Brunei Darussalam Institute of Certified Public Accountants (BICPA); and Ordre des Experts-Comptables du Luxembourg (OEC). The Council also gave affiliate status to the National Association of State Boards of Accountancy (NASBA) from the United States.

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 and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

Individual investors deserve better quality financial information--top executives from the International Federation of Accountants (IFAC) told reporters at a briefing session this morning at the National Press Club--and having common global standards is one way to get it.

"Why should individual investors care about global standards?" asks Robert Bunting, IFAC President, asserting that standards level the playing field--so that the kind of information individuals receive about an investment in one part of the world is as reliable as what they receive in another. He explains that his organization's 157 member bodies in 123 countries continue to work toward implementing international standards in auditing, public and private sector accounting and ethics.

Ian Ball, IFAC's Chief Executive Officer, adds that common international public sector accounting standards (as set by IFAC's independent International Public Sector Accounting Standards Board [IPSASB]) are also critical to enhancing the quality of government financial reporting. This was why IFAC recommended to the G-20's summit in Pittsburgh in September that the Leaders should back global adoption of public sector standards, says Ball. "It's not just making decisions to invest in government securities where this makes a difference. To the ‘man-on-the-street,' public sector standards deliver information about a government's use of taxpayer funds," he adds.

Another issue Mr. Bunting addressed in the briefing is the importance of small and medium enterprises (SMEs) as the engine of the global economy--the primary source of new jobs, innovation and growth. Financial regulation should not place unreasonable obstacles in the path of SMEs--such regulation can stifle their growth.

The briefing session at the National Press Club was part of the activities surrounding IFAC's annual Council Meeting, an event attended by presidents and chief executives of professional accounting institutes from around the world.

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 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.