The International Federation of Accountants (IFAC) released a Small Business Sustainability Checklist (the Checklist) today to help small- and medium-sized enterprises (SMEs) maximize the benefits of incorporating sustainability into their strategy and business operations.

The Checklist is a diagnostic tool designed to be tailored by each business according to its own unique circumstances, including its industry sector, lifecycle, and products and services provided. It lists a comprehensive range of initiatives and actions to be considered in terms of environmental, social, and governance (ESG) factors. Not all actions in the Checklist will be relevant to every SME, but the Checklist aims to help all organizations to take small steps on what could be a long but highly fulfilling journey.

As outlined in previous IFAC thought leadership, including Sustainability Information for Small Businesses: The Opportunity for Practitioners, small and medium-sized practices (SMPs) are ideally placed to help SMEs on this journey because of their deep business knowledge and expertise. As trusted advisers, they can recognize the risks and opportunities and advise SMEs on how best to act on them.

Monica Foerster, IFAC SMP Advisory Group Chair, said: “SMEs are critical to the global economy through their vital contributions to GDP and employment levels. Thus, they need to be an active part of the conversation on sustainability issues. Moreover, the expectations for SMEs to report on sustainability information, often due to requests from supply chain partners or finance providers, are likely to grow, resulting in new challenges to these businesses. SMPs are ideally placed to help SMEs tackle sustainability-related risks and to help unlock opportunities, enhance resilience, and illuminate the path to becoming future fit.”

The Checklist was developed under the umbrella of IFAC’s work on Practice Transformation, which highlights the need for SMPs to adapt to remain relevant and serve a rapidly changing world. SMPs are also strongly encouraged to use the Checklist to begin their own journey and consider their strategy, policies, and procedures on sustainability. This is also critical to both attracting and retaining the next generation of talent.

The Small Business Sustainability Checklist has been launched together with an expanded range of external resources to help practitioners upskill and build knowledge in this emerging area. IFAC has prepared a dedicated web page that provides material on sustainability reporting, advisory, assurance, and education and training. Professional Accountancy Organizations are encouraged to share the Checklist with their members and highlight the range of additional resources available.

IFAC acknowledges and appreciates feedback from IFAC’s Small and Medium Practices Advisory Group and the Forum of Firms representatives in the development of the Checklist.

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.

A worldwide search has launched for volunteers to serve as members on the International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting body that serves the public interest by setting high-quality standards for use by public sector entities globally in the preparation of general purpose financial reports.

The initial-term of service for these volunteers will span three years, commencing on January 1, 2025. Candidates will ideally have a public sector background, with experience in standard setting and/or sustainability reporting. Out for comment now, the IPSASB’s draft Strategy and Work Program 2024-2028 proposes a shift from developing new standards towards maintaining the IPSAS suite of standards, and embeds the Board’s work in public sector sustainability reporting. Volunteers who can contribute to the changing scope and focus of the Board’s work are especially sought. English proficiency (both written and oral) is essential, as this is the language in which the IPSASB operates, although nominations from jurisdictions where English is not the predominant language, are encouraged.

Nominations from all regions of the world are encouraged, with a particular emphasis on qualified candidates from both Asia and Europe. Nominations from a wide range of relevant backgrounds are sought, including, but not limited to, candidates from:

• Users of general purpose financial reports, such as parliamentarians, budget offices, and credit-rating agencies;
• Ministries of Finance, Accountants General Departments, and other preparers of accrual-based financial statements and/or public sector sustainability reports. With the increasing implementation of IPSAS, candidates from jurisdictions that are transitioning to or have already implemented IPSAS are particularly encouraged; and
• Public sector external auditors.

“To develop high-quality international standards and effectively promote IPSAS adoption, IPSASB volunteers need diverse backgrounds and skillsets,” said Ian Carruthers, IPSASB Chair. “With the continuing global transition to accrual IPSAS, I strongly encourage jurisdictions that are using IPSAS, or actively transitioning to IPSAS, to nominate candidates. This term will be during a landmark period of the IPSASB’s strategy and work program as it undertakes the development of sustainability standards in addition to its ongoing financial reporting activities. Engaging in this important work provides an opportunity to make a significant impact, while providing valuable experience that benefits the volunteer and its supporting organization.”

All stakeholders, including the general public, as well as International Federation of Accountants (IFAC) member organizations, the Forum of Firms, governments, and other organizations are invited to nominate candidates. Global stakeholder participation is crucial to shaping the future of international public sector standards.

The deadline for submitting applications is January 31, 2024. Please see the Call for Nominations for more details and information on how to submit an application.

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, and the government of Canada. 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 Nominating Committee

The Nominating Committee is responsible for the selection process for IPSASB membership. The Public Interest Committee oversees the nominations process for IPSASB and provides its advice. The International Federation of Accountants® (IFAC®) Board approves the IPSASB composition. To learn more about the Nominating Committee, please visit IFAC website.  

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 International Federation of Accountants (IFAC) today announced that Lee White has been named to succeed Kevin Dancey as CEO. Mr. White will assume his new post in March 2024 and will be based in London.

Mr. White, who has been with the IFRS Foundation since 2018, has more than 30 years of global executive, regulatory and leadership experience. A chartered accountant, Mr. White has most recently led the creation of the International Sustainability Standards Board (ISSB) within the IFRS Foundation and the launch of the ISSB’s first two standards in June. Mr. White is an avid champion of the role of professional accountants in driving and delivering high-quality sustainability-related disclosure and assurance.

Before joining the IFRS Foundation, Mr. White spent nine years at Chartered Accountants Australia and New Zealand (CAANZ), including six years as its CEO, having been instrumental in the successful merger of the Institute of Chartered Accountants Australia (ICAA) with CAANZ. Earlier in his career, Mr. White was Chief Accountant of the Australian Securities and Investments Commission (ASIC) during which time he was directly involved in the creation of the International Forum of Independent Audit Regulators (IFIAR).

On the occasion of his appointment, Mr. White said, “I am delighted with and humbled by the opportunity ahead. Engagement of the global accounting profession has never been more critical if society is to address many of the world’s most pressing economic and environmental issues. I look forward to leading our profession in a way that will continue to serve a vital public interest role, and also to raising awareness about the extraordinary opportunities available to accountants today.”

Asmâa Resmouki, President of IFAC, said, “We are very fortunate to have secured a leader of Lee’s caliber to take IFAC on the next chapter of its journey, and I would like to thank IFAC’s CEO Search Committee for their efforts in identifying the best candidate for the role. Lee’s deep knowledge of IFAC, his global business acumen and his commitment to the public interest promise to serve the profession, and indeed all of IFAC’s stakeholders, very well.”

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.

On August 2, the International Auditing and Assurance Standards Board (IAASB) launched a public consultation on its landmark proposed global sustainability assurance standard, International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. It also committed to an extensive, high-level outreach plan to ensure broad stakeholder input to improve both the quality of and trust in the final standard. This plan included in-person roundtables around the world, virtual webinars for global audiences, and regional and national meetings with regulators and oversight bodies.

These are the results of this unprecedented outreach campaign:

The International Federation of Accountants (IFAC) and Chartered Accountants Australia and New Zealand (CA ANZ) released a quality management toolkit today to help small- and medium-sized practices (SMPs) implement the International Auditing and Assurance Standards Board’s (IAASB) suite of quality management standards.

The Quality Management Toolkit for Small- and Medium-Sized Firms and its companion Illustrative Risk Matrix include a suite of illustrative documents, policies, checklists, sample letters and forms to help SMPs establish their quality objectives, identify and assess quality risks, and design and implement responses to address their identified quality risks. The toolkit is designed to require each SMP to adapt the content to its nature, circumstances, and engagements, a crucial element given each firm goes through its own unique process developing its quality management system.

Kevin Dancey, IFAC CEO, said: “Many SMPs face resource constraints that affect implementing the IAASB’s quality management standards, given the new standards require a more proactive and tailored approach to managing quality across firms of all sizes. By partnering with CA ANZ to adapt its excellent original materials for an international audience, we are providing SMPs, and the professional accountancy organizations that support them, with a clear roadmap to understanding and applying the standards to drive overall quality.”

Ainslie van Onselen, CA ANZ CEO and Chair-Elect of Chartered Accountants Worldwide, said: “High-quality audits are crucially important for enterprises of all sizes in markets around the world. Based on our experience using a similar approach in Australia and New Zealand, this toolkit will help SMPs implement the quality management standards and ensure that a commitment to quality is at the center of a firm’s strategy, operation, and service delivery for audits and other engagements. We are pleased to partner with IFAC to deliver these materials to the global accountancy profession. Our Australian and New Zealand version was well received and we hope this global version will be valuable to SMPs around the world.”

Individual practitioners can tailor and reproduce the quality management toolkit for non-commercial use without permission from IFAC. Otherwise, permission is required to reproduce, store, or transmit, or to make similar uses of the toolkit. Contact permissions@ifac.org. IFAC member organizations are invited to submit a permission request to provide their members with the toolkit, including adding their logo, as long as appropriate acknowledgement of IFAC and CA ANZ is included with the copyright notice.

This quality management toolkit joins IFAC’s collection quality management resources, including webinars, articles and videos, as well as the IAASB first-time implementation guides, all of which are available at ifac.org/qualitymanagement.

IFAC acknowledges and appreciates feedback from IFAC’s Small and Medium Practices Advisory Group and the Forum of Firms representatives in the development of the toolkit.

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 CA ANZ
CA ANZ represents more than 136,000 Members around the world, offering its flagship CA Program, promoting the CA designation and high ethical standards and delivering world class services and lifelong education to its Members and advocates for the public good.

As part of its intensive outreach campaign across the globe, the IAASB has heard requests from a range of stakeholders to provide additional information on materiality matters to better help them navigate the recently proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. Accordingly, a comprehensive set of Frequently Asked Questions (FAQs), The Application of Materiality by the Entity and the Assurance Practitioner, has been developed.

The FAQ compilation addresses a variety of questions, including how the concept of materiality applies to sustainability reporting and assurance; the definition of double materiality; and how an assurance practitioner considers an organization’s “materiality process” during a sustainability assurance engagement, among other questions and answers.

The comment period for proposed ISSA 5000 is open until December 1, 2023. To promote broad and diverse participation in the ongoing public consultation, the IAASB has developed a Stakeholder Survey, which may be especially useful for stakeholders wishing to share less technical or overall feedback, and a Response Template.

For further details and updates, visit the IAASB website: iaasb.org/ISSA5000

The Staff of the International Ethics Standards Board for Accountants (IESBA) today released a questions and answers (Q&A) publication on the pronouncement Revisions to the Code Relating to the Definition of Engagement Team and Group Audits. The revisions to the Code address holistically the various independence considerations in an audit of group financial statements. The revisions also deal with the independence and other implications of the changes to the definition of an engagement team in the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to align with changes to the definition of the same term in the International Auditing and Assurance Standards Board’s (IAASB) International Standards on Auditing (ISAs) and International Standards on Quality Management (ISQMs).

The Q&A publication is designed to highlight, illustrate, or explain aspects of the revisions in the Code and is intended to complement the Basis for Conclusions for the final pronouncement. It will assist firms, national standards setters, and professional accountancy organizations in adopting and/or implementing the revisions. The Q&As will also assist regulators and audit oversight bodies, the corporate governance community, investors, preparers, educational bodies or institutions, and other stakeholders in understanding the revisions to the Code. 

The development of the Q&As has been informed by the IESBA’s extensive discussions and consultations with a wide range of stakeholders and the IESBA’s own deliberations during the development and finalization of the pronouncement.

The pronouncement is coming into effect for audits of financial statements and group financial statements for periods beginning on or after December 15, 2023, with early adoption permitted.

Artificial intelligence (AI) and intelligent automation (IA) are creating significant opportunities for organizations and individuals and are shaping the future of professional accountants as leaders and business partners.

Digital transformation based on intelligent automation can drive business growth and customer and employee satisfaction.

To provide in-depth insights about AI and IA and consider their impact on the work of accounting and finance professionals, IFAC’s Professional Accountants in Business (PAIB) Advisory Group received a presentation from Pascal Bornet, IA pioneer and CPA, and have shared a recording and takeaways from the discussion.

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Explore takeaways from the presentation and watch the recording to learn some of the opportunities opening to accounting and finance professionals who embrace AI and IA.

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 Public Sector Accounting Standards Board^® (IPSASB^®) has issued Exposure Draft (ED) 85, Improvements to IPSAS, 2023.

ED 85 proposes minor improvements to accrual basis IPSAS that arise through publications of the International Accounting Standards Board (IASB). The proposals in this exposure draft may be modified in light of comments received before being issued in final form. Comments are due by December 18, 2023 and must be submitted in English. 

Across the globe momentum is building for sustainability reporting and assurance in the public sector. The IPSASB decided to move forward with the development of public sector specific sustainability reporting standards beginning with a Climate-Related Disclosures standard. Finance and audit professionals working in government, public sector bodies and supreme audit institutions – Auditors-General’s offices, Courts of Accounts and similar (SAIs) –  can demonstrate leadership on this agenda, driving action to progress transparent reporting and assurance of expenditure and actions to address sustainability challenges.

At the World Investment Forum in Abu Dhabi on 16^th October three global bodies, ACCA, IFAC and IDI launched a summary of their forthcoming introduction to sustainability and assurance in the public sector.

Based on their ongoing work and recent global roundtables with public sector reporting and auditing experts, the report makes the case for a focus on the principle of sustainable development: "meeting the needs of the present without compromising the ability of future generations to meet their own need." It outlines what sustainability reporting and assurance mean for the public sector, why they are important, and key principles for governments, SAIs and other public sector bodies to consider in this journey.

Speaking at the ACCA/UN symposium on developing public sector sustainability reporting, Maggie McGhee, Executive director for Strategy and Governance at ACCA said, "A sustainable future for all is a primary concern across government activity. At the same time governments play a critical role in establishing good governance: the institutional, policy and regulatory frameworks in which society operates. So governments and other public sector bodies need to be able to measure and report on how their policies and expenditure are addressing sustainability challenges."

Laura Leka, Principal and public sector lead at IFAC said, "Policymakers and other stakeholders, including the public, need information to understand the sector’s impact on sustainable development. It’s important that sustainability reporting provides disclosures that are high-quality, decision-useful, and prepared in accordance with internationally recognized reporting and disclosure standards."

As sustainability reporting develops, independent external assurance will become increasingly necessary to build trust in the information being disclosed. Roundtable participants saw SAIs taking the lead, building on their experience auditing progress towards sustainable development.

Archana Shirsat, Deputy Director General at IDI, said, "SAIs have a central role to play in providing independent and objective oversight on sustainability information generated by the public sector. Determining appropriate forms of assurance or confidence, engaging with stakeholders and developing auditor competencies to audit sustainability information is important to build public trust."

Read the Executive Summary here.

About ACCA

We are ACCA (the Association of Chartered Certified Accountants), a globally recognised professional accountancy body providing qualifications and advancing standards in accountancy worldwide.  

Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 247,000 members and 526,000 future members in 181 countries.   

Our forward-looking qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to create, protect, and report the sustainable value delivered by organisations and economies.  

Guided by our purpose and values, our vision is to develop the accountancy profession the world needs. Partnering with policymakers, standard setters, the donor community, educators and other accountancy bodies, we’re strengthening and building a profession that drives a sustainable future for all. 

Find out more at: www.accaglobal.com  

About IDI

The INTOSAI Development Initiative (IDI) is an autonomous implementing body that is not-for-profit. Its mandate is to provide support to Supreme Audit Institutions (SAIs) in developing countries to enhance their performance and capacity in a sustainable manner. The work done by IDI is based on the needs and challenges experienced by SAIs. The support provided is focused on a needs-based and sustainable approach. IDI seeks to empower SAIs by promoting gender-responsiveness and peer-to-peer cooperation as essential elements of long-term capacity development.

In each country, there is a Supreme Audit Institution that is tasked with auditing public funds to ensure that it is an effective, accountable, and inclusive institution. IDI is convinced that its contribution to strengthening Supreme Audit Institutions can make a difference in the lives of citizens for several reasons. Firstly, government audits are key components of effective public financial management and good governance. Secondly, SAIs contribute to the quality of government engagement and better state-society relations through their work. Lastly, SAIs are key stakeholders in supporting the implementation of Sustainable Development Goals (SDGs).

www.idi.no

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.

www.ifac.org