The International Public Sector Accounting Standards Board^® (IPSASB^®) has released Exposure Draft (ED) 90, Amendments to IPSAS as a Result of the Application of IPSAS 46, Measurement for public comment.

After publishing IPSAS 46, Measurement, and the Updated Conceptual Framework: Chapter 7, Measurement of Assets and Liabilities in Financial Statements in May 2023, the IPSASB evaluated the applicability of its new Current Operational Value public sector measurement basis across existing IPSAS.

“ED 90 builds upon the important work accomplished in IPSAS 46, Measurement released last year which provides an integrated approach to valuation to help entities measure public sector assets,” said Ian Carruthers, IPSASB Chair. “These amendments will provide users of public sector general purpose financial statements with more relevant and faithfully representative measurement information through the potential application of public sector specific guidance across a broader range of situations.”

The amendments to IPSAS proposed in ED 90 are the introduction of current operational value in IPSAS 12, Inventories, IPSAS 21, Impairment Non-Cash Generating Assets, and IPSAS 31, Intangible Assets, the addition of a definition of accounting estimates to IPSAS 3, Accounting Policies, Changes In Accounting Estimates and Errors, and the enhancement of the terminology in current value measurement disclosures.

The feedback received from ED 90 will help shape the final amendments related to the application of Current Operational Value across existing IPSAS.

How to Comment
Access the Exposure Draft, its summary At-a-Glance document, Webcast, or submit a comment. Comments are requested by November 29, 2024. The IPSASB encourages IFAC members, associates, and regional accountancy organizations to promote the availability of this Exposure Draft to their members and employees.

About the IPSASB
The International Public Sector Accounting Standards Board® (IPSASB®) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards^® (IPSAS^®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and the World Bank. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact ﷟permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

The IESBA today submitted a comment letter to the Committee of European Auditing Oversight Bodies (CEAOB) regarding the CEAOB’s draft non-binding guidelines on limited assurance on sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD) in the European Union (EU).

Starting from financial years beginning on or after January 1, 2024, large companies in the EU are required to draw up sustainability statements in accordance with the European Sustainability Reporting Standards (ESRS). These statements are required to be subject to an assurance engagement by statutory auditors or other assurance services providers.

To prevent fragmentation and promote consistency in practices until the European Commission’s (EC) adoption of an assurance standard at EU level by October 1, 2026, the EC has invited the CEAOB to develop non-binding guidelines regarding limited assurance on sustainability reporting.

To read the full comment letter, please click here.

About IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting high-quality ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.

Along with the International Auditing and Assurance Standards Board (“IAASB”), the IESBA is part of the International Foundation for Ethics and Audit (“IFEA”). The Public Interest Oversight Board (“PIOB”) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.

The International Federation of Accountants (IFAC) warmly welcomes the appointment of Eelco van der Enden as the new Chief Executive Officer of Accountancy Europe.

Lee White, Chief Executive of IFAC, said: "I am thrilled to have the opportunity to work closely with Eelco again and for the benefit of our global profession. His proven track record and visionary leadership will undoubtedly contribute to the continued success and evolution of the accountancy profession across Europe."

With his impressive background and extensive experience in the accountancy profession, bringing more than 20 years of experience in financial and sustainability senior management roles, Eelco van der Enden is set to lead Accountancy Europe into a new era of innovation and growth.

“I have personally had the privilege to work with Eelco for a number of years. He has been pivotal in leading GRI through increasing harmonization of sustainability reporting, working closely with partners towards a common baseline for globally applicable and comparable sustainability data.  I am confident that he will now play a crucial role in advancing our shared goals,” Lee White commented.

“And as we welcome Eelco, I also want to praise the outstanding contribution of Olivier Boutellis-Taft during his tenure as CEO of Accountancy Europe," noted Lee White.

“Olivier's inspirational leadership over the past 18 years has been instrumental in navigating the organization through significant regulatory changes and advancing the role of accountants in the sustainability and digital transformations. His commitment to fostering collaboration among stakeholders and promoting transparency and accountability has left a lasting impact on the profession. Under his guidance, and thanks to Olivier’s “out-of-the-box” thinking and ability to take bold decisions, Accountancy Europe has solidified its position as a leading voice in the European accountancy community, and has become a key partner for EU policy-makers. I am deeply grateful for his dedicated service to our profession," Lee White added.

IFAC and Accountancy Europe share a longstanding commitment to promoting high-quality standards and practices within the accountancy profession, at all levels. Under Eelco van der Enden’s direction, both organizations are poised to further strengthen their collaboration to enhance the value for our members and serve the public interest.

"Our profession is at a critical juncture where the need for robust cooperation is more important than ever. Together, we can drive economic growth and sustainability transformation by enabling the necessary transparency and accountability that build trust in organizations," Lee White concluded.

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

The Public Interest Committee (PIC) and the International Federation of Accountants (IFAC) are pleased to announce the establishment of a Search Committee to select the next Chair of the International Public Sector Accounting Standards Board (IPSASB) for an initial three-year term starting on January 1, 2026. The appointee will succeed Ian Carruthers, IPSASB Chair since 2016.

The Search Committee will be chaired by Mr. Vinod Rai, who served as the 11th Comptroller and Auditor General of India, and the chairman of the UN Panel of External Auditors. Mr. Rai has been recognized for strengthening public sector accountability and his legacy includes setting high standards for financial management and improvements in governance practices.

The Search Committee includes the following members:

• Fergal Costello, Ireland, Principal, Department of Public Expenditure;
• Assietou Sylla Diouf, Togo, Global Managing Director, Integrate Health;
• Davit Gamkrelidze, Georgia, Head of the State Treasury; and
• Heather Taylor, Canada, EY Partner, Climate Change & Sustainability Services.

The Search Committee will start its work in early September and plans to issue its Call for Applications for the next IPSASB Chair by mid-November 2024.

Mr. Rai, Search Committee Chair: “Strengthening the public sector to ensure sustainable and strong economic growth is my lifelong passion and career. I am honored by the opportunity to lead the search for this key position working with such esteemed colleagues from around the globe.”

Jon Blondal, PIC Co-Chair: “The standards promulgated by the IPSASB have contributed greatly to the advancement of accrual accounting and modernizing public financial management around the world. We look forward to the work of the Search Committee in identifying the next Chair of the IPSASB.”

Lee White, IFAC Chief Executive Officer: “With the timely broadening of the IPSASB's scope to include sustainability reporting, the IPSASB's next chair will be vital in continuing this development, which IFAC strongly supports. IPSASB's standards are crucial to effective public sector financial management and strong and sustainable public sector organizations. I am confident that the independent Search Committee, led by Mr. Rai, will find a strong Chair to continue the legacy built by Mr. Carruthers and his predecessors.”

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

About the IPSASB
The International Public Sector Accounting Standards Board® (IPSASB®) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards™ (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org. 
 

The International Auditing and Assurance Standards Board (IAASB) has released new supplemental guidance on auditor reporting as it relates to the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as the ISA for LCE. Meant to be read with the ISA for LCE, the new guidance provides assistance for auditors about modifications to the auditor’s report when using the standard. The guidance also includes information on using emphasis of matter and other matter paragraphs, reporting on other information, and reporting on a material uncertainty related to going concern.

Additionally, the guidance features eight illustrative auditor’s reports, including examples of adverse opinions, disclaimer of opinions, and opinions when there is a material uncertainty related to going concern.

Accessible on the IAASB website, this new Auditor Reporting Supplemental Guidance complements previously released resources, including videos and webinars, which provide a robust toolkit for navigating the ISA for LCE, adoption, and implementation. Additional resources will be published this quarter, including an adoption guide, supplemental guidance on the authority of the standard, and a first-time implementation guide.

The new guidance does not amend or override the ISA for LCE, the text of which alone is authoritative. Reading the guidance is not a substitute for reading the ISA for LCE. For more information and to access the new guidance, visit: www.iaasb.org/ISAforLCE

With 12 of the world’s 20 fastest-growing economies and an economic landscape characterized by rapid urbanization, a young demographic, and abundant natural resources, Africa’s development is vital in a regional and global context.

Achieving the continent's growth and sustainable development ambitions requires the active contribution of accountancy and finance professionals, as highlighted in The Accountancy Profession Enabling Africa’s Transformation, a new report from the International Federation of Accountants (IFAC) and the Pan African Federation of Accountants (PAFA).

Launched yesterday at PAFA’s General Meeting, the report outlines how influential accountants on company boards, and as CFOs and trusted business advisers are to drive sustainable economic growth in Africa and navigate its challenges including energy access, a lack of regional integration, rising public debt, as well as climate change adaptation and mitigation estimated to cost between USD 68 and 108 billion annually.

The report was informed by a panel of experts at IFAC’s Professional Accountants in Business Advisory Group meeting in South Africa moderated by the PAIB Advisory Group Chair Sanjay Rughani, and including the Brookings Institution, The African Development Bank (AfDB), The World Bank, TradeMark Africa, Amundi Asset Management, Standard Chartered Bank, Nedbank, and Investec Bank. The panel also included Josephine Okui Ossiya who provided CFO lessons from the Bujagali hydroelectric power station.

“We believe the accountancy profession has a critical role in achieving transformation in Africa and empowering change,” said IFAC Chief Executive Officer Lee White. “We value our partnership with PAFA to support regional efforts towards addressing Africa’s priorities to enable sustainable growth and build capital market efficiency and transparency.”

“By strengthening the capacity and influence of the accountancy profession in Africa, we enable our 56 member organizations in 45 countries to help drive sustainable growth and prosperity by enhancing trade and regional integration, investment, the quality of services and trust in institutions,” said PAFA Chief Executive Officer Alta Prinsloo. "This report highlights the key areas in which the accountancy profession can influence transformation to achieve a just and sustainable transition for Africa.”

Learn more about what accounting and finance professionals can do to enable Africa’s sustainable transition. The report is available in English and French.

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

About PAFA

Voluntary Carbon Markets (VCMs) were created to mobilize private capital at scale towards nature-based climate solutions and innovative low-carbon technologies. The use of carbon credits within VCMs to reduce greenhouse gas emissions (GHG) has been hotly debated and is increasingly scrutinized. 

To add clarity and highlight potential risk factors, the International Federation of Accountants (IFAC), CPA Canada and the Institute for Sustainable have published a resource for professional accountants and existing and potential market participants, including businesses, capital providers and the broader public, on the state of VCMs and their future development, Understanding Voluntary Carbon Markets: Key considerations for professional accountants and purchasers on the carbon credit life cycle. This report examines existing VCMs and related standards and best practices to increase confidence in carbon markets and encourage investment in credible GHG reduction projects and schemes. It follows IOSCO's consultation report to promote the integrity and orderly functioning of the VCMs which now forms part of IOSCO's updated 2024 workplan. 

This is the first instalment of a three-part series and covers the fundamentals of VCMs: 

• Why do voluntary carbon markets exist? 
• How do they differ from compliance markets? 
• What is a carbon credit and how are they processed and used? 
• Who is participating in the market and why?  
• What are the criticisms of carbon credits, and risks and challenges for market participants? 
• And what are the considerations for verifying, valuing and pricing credits? 

Two future installments will dive deeper into the accounting and disclosure issues, particularly against the backdrop of identified risks and areas of manipulation in the market.  

Stathis Gould, Director, IFAC: “Professional accountants are instrumental in making well-informed decisions to reduce GHG emissions and must be well-versed in the challenges and opportunities presented by VCMs to advance climate action, safeguard credibility and ensure transparency.”

Download the report: Understanding Voluntary Carbon Markets: Key considerations for professional accountants and purchasers on the carbon credit life cycle.  

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 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce. 

The International Public Sector Accounting Standards Board (IPSASB), with support from the World Bank, is developing a climate-related disclosures standard for the public sector.

The IPSASB, developer of international reporting standards for use by governments and other public sector entities around the world, announced in June 2023 it would begin developing a Climate-related Disclosures standard, a first for the public sector. This standard will be the IPSASB’s inaugural Sustainability Reporting Standard (IPSASB SRS™). By increasing transparency, it will enable governments and other public sector entities to make more informed decisions about their contributions towards addressing the climate emergency, hold them accountable for their interventions, and foster trust in their efforts.

The World Bank, an institution dedicated to providing financing, policy advice, and technical assistance to governments of developing countries, has put their support behind this critical initiative to develop the IPSASB's first SRS on Climate-related Disclosures. An initial draft standard will be released for feedback in Q4 2024.

Alongside this announcement, the IPSASB has also published a Stakeholder Engagement Plan outlining how people can provide feedback about the project, through mechanisms that are already a central part of the IPSASB’s due process.

“Equipping governments with the quality standards necessary to report on their critical contributions to addressing the climate emergency together with other sustainability issues requires global support,” said Ian Carruthers, IPSASB Chair. “The World Bank’s contribution provides welcome support for our initiative to develop urgently-needed public sector specific sustainability reporting standards, beginning with a Climate-related Disclosures standard.”

“The standard will take climate reporting to a new level and will complement the reporting requirements of the Paris Agreement which come into effect this year,” said Arturo Herrera, World Bank Global Director for Governance. “Many countries lack a way to track and assess progress against their climate-related commitments, and to identify and disclose risks and impacts. This is especially true for developing countries, many of which are among the most at-risk from climate change. At the same time, SRS disclosure can help attract new investment from the private sector. Some of the world’s biggest investors look at ESG performance in deciding where to invest. The new standard will provide that information.”

Global community engagement is essential to developing sustainability reporting standards for the public sector. The IPSASB continues to seek support for its sustainability reporting standards development program and requires additional resources to scale up its efforts and move with pace. To contribute financial or other support to the IPSASB for the development of IPSASB SRS, please email Ross Smith, IPSASB Program and Technical Director (rosssmith@ipsasb.org).

About the IPSASB 

The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and the World Bank. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.  

About the World Bank

The World Bank is an international organization that provides financing, advice, and research to developing nations to help advance their economies. It is one of the world’s largest sources of funding and knowledge for developing countries. The World Bank is headquartered in Washington, D.C. and is affiliated with the United Nations. It is made up of five institutions with one common mission: to end extreme poverty and boost shared prosperity on a livable planet.

Funding for the project is through the World Bank’s Financial Management Umbrella Program. The Program is supported by the Australian Department of Foreign Affairs and Trade, the Government of Austria, the Bill & Melinda Gates Foundation, the European Union, the Swedish International Development Cooperation Agency, Switzerland’s State Secretariat for Economic Affairs, the United Kingdom’s Foreign, Commonwealth and Development Office, and the United States Agency for International Development.

Unleashing the Potential of Islamic Finance: Global Perspectives on Achieving the SDGs with Islamic Finance Tools & Concepts, a new report from the International Federation of Accountants, Malaysian Institute of Accountants (MIA) and the World Bank Group Inclusive Growth and Sustainable Finance Hub in Malaysia (World Bank) looks at the opportunities presented by Islamic finance, practical examples of its usage from Malaysia, and future pathways towards addressing challenges and unlocking the full potential of Islamic finance to support the SDGs.

The report was released today at Innovation in Sustainable Development: Islamic Finance Paving the Way hosted by MIA in Kuala Lumpur featuring a keynote address from IFAC President Asmâa Resmouki.

In recent years, addressing the Sustainable Development Goals (SDGs) has become increasingly challenging. The worldwide economic downturn resulting from the COVID-19 pandemic has worsened the already significant USD4.2 trillion funding gap to achieve the SDGs. As countries worldwide strive to finance the ambitious scope and scale of the SDGs, they also face the complex task of serving financially underserved communities. Advancing Islamic finance has the potential not only to serve usually underbanked Muslim communities but has broader application considering its synergies with the SDGs.

A major tenet of Islamic finance is the protection of people, planet, and prosperity, and its underpinnings can contribute to fresh thinking on sustainable development paradigms, interpretations, and approaches. The SDGs create opportunities for Islamic finance growth, just as Islamic finance can drive greater sustainable development.

Malaysia has become a pioneer of Islamic finance, attributed in part to its strong governance, supportive regulatory ecosystem, and the pivotal role of a local professional accountancy organization, MIA, in education and stakeholder outreach. Though every jurisdiction’s use of Islamic finance would work differently, Malaysia and MIA can serve as examples to learn from.

“Professional accountancy organizations are playing a key role in advancing sustainable financing, and given the profession’s commitment to support the SDGs, principles of Islamic finance should be considered a viable approach,” said Asmâa Resmouki, IFAC President. “We encourage all IFAC members to look towards best practices such as those cultivated in Malaysia, and seize opportunities presented in their own jurisdictions.”

Learn more about Islamic finance and download the report. 

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

The International Ethics Standards Board for Accountants (IESBA) today released its 2023 Annual Report, Respecting the Past, Planning for the Future.

This interactive review of 2023 features comprehensive accounts of the Board’s projects and insights from its leaders, illustrating a period of significant achievement. The achievements include the approval and subsequent launches of the Exposure Draft on International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and ethics standards for sustainability reporting and the final Ethics Standards for Tax Planning and Related Services.

2023 also saw the board approve an Exposure Draft on Using the Work of an External Expert and the IESBA’s Strategy and Work Plan for 2024-2027, all aimed at strengthening the IESBA’s International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).

"2023 has been a transformative year for the IESBA, marked by our continued commitment to strengthening global ethics standards and putting ethics at the heart of corporate decision-making," said IESBA Chair Gabriela Figueiredo Dias. "Our efforts in areas such as sustainability reporting and assurance and tax planning are prime examples of how we are addressing the evolving challenges and opportunities to enhance public trust and integrity in corporate reporting and in the work of professional accountants and assurance providers."

The 2023 IESBA Report also includes an interactive map showcasing the 140+ countries where the IESBA Code is in use and an overview of the Board’s extensive stakeholder outreach efforts and initiatives to promote global adoption and effective implementation of the Code.

Throughout 2023, the IESBA has responded vigorously to the challenges of ethics in the accountancy profession and beyond. The 2024 agenda will focus on final approvals of sustainability-related standards, new workstreams addressing accountancy firm culture and governance, and independence considerations for audits of collective investment vehicles, pension fund arrangements, and investment company complexes.

The full report can be accessed here.

About IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting high-quality ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.

Along with the International Auditing and Assurance Standards Board (“IAASB”), the IESBA is part of the International Foundation for Ethics and Audit (“IFEA”). The Public Interest Oversight Board (“PIOB”) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.