IFAC, the International Federation of Accountants, is pleased to recognize Mr. Aki Fujinuma of Japan with its Global Leadership Award for his service to the accountancy profession.

Among his many achievements, Mr. Fujinuma helped build public confidence in the accountancy profession over the past two decades. His actions, which included launching a quality-control initiative in Japan and other countries to ensure confidence in audit, significantly contributed to that effort in the region and around the world.

Mr. Fujinuma is a well-known leader both within and outside of the profession, having been recognized by the government of Japan for his leadership and contributions to the accountancy profession and Japanese society. He is a past president of IFAC (2000-2002) and played a significant role promoting IFRS adoption in the Asia-Oceania region as a former vice chair of the IFRS Foundation.

Mr. Fujinuma’s accomplishments also include serving as an IFRS Foundation trustee, a member of the Financial Accounting Standards Foundation of Japan and the International Auditing and Assurance Standards Board, and as chairman and president of the Japanese Institute of CPAs, which awarded him its Grand Prize of the Day of CPAs. He has served as an outside director of many large corporations, including the Japan Exchange Group, and as one of the Governors of Japan Exchange Regulation.

“I am honored to present the Global Leadership Award to Aki, for whom I have the deepest respect,” said Dr. In-Ki Joo, IFAC President. “At a critical time, Aki built bridges between the profession and key stakeholder groups—and he continues to do so. Aki’s efforts have resonated at difficult moments and he continues to be a powerful advocate for the accounting profession on the global stage.”

Established in 2017 by the IFAC Board, the IFAC Global Leadership Award recognizes individuals who make outstanding contributions to the global accountancy profession. The award honors the contributions of Robert Sempier, IFAC’s first executive director who greatly contributed to the development of the profession worldwide.

The Global Leadership Award was presented during IFAC’s 2019 Council meeting, held from November 13 to 14 in Vancouver, Canada.

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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

As the UN Climate Change Conference (COP) meets this week, IFAC urges decisive action to put the world on a path to a sustainable future. To clearly articulate the role of the global accounting profession in addressing the climate emergency, IFAC published its Point of View on climate action.

In the Point of View, IFAC sets forth recommendations for various stakeholders:

• Governments can take advantage of The UN Climate Change Conference of the Parties (COP) to provide clear direction on reducing long-term emissions, to deliver greater certainty for business, and to encourage investment in low-emissions technology and innovation.
• Businesses can accelerate plans for climate change mitigation and adaptation. They can deliver transparency and confidence through reliable and decision-useful climate related information.
• Professional accountancy organizations (PAOs) have an influential role in influencing climate change mitigation and adaptation as advocates for the profession and providers of accounting training and support. PAOs can commit to keeping accountants informed of how they can support their organizations’ and clients’ efforts to respond to climate risk.
• Accountants can encourage and enable meaningful action on climate change as influential advisors in governments and organizations. They can achieve this by providing relevant insights, analysis, reporting, and assurance to help organizations create and protect value over the long-term.

At the global level, IFAC is committed to working with the global profession to build the knowledge and capacity of accountants to meet the Sustainable Development Goals (SDGs) and to speaking out on climate action on behalf of the accounting profession, working through the B20, G20, and OECD.

“Ignoring the impact of climate change is not an option – nor is business as usual,” said IFAC CEO, Kevin Dancey. “As instrumental members or advisers of every government, business, and not-for-profit organization, professional accountants must influence and enable the transition to a low-carbon society.”

The conversations at COP 25 this week will be particularly important to provide clarity in reducing long-term emissions to meet the Paris Agreement. All actors in the global economy must usefully contribute, and professional accountancy remains a committed part of the solution.

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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

A global search has begun for highly qualified volunteers to fill seven volunteer openings on the International Auditing and Assurance Standards Board (IAASB) as Board Member for an initial term of up to 3 years, commencing January 1, 2021.

As a result of the IAASB’s normal rotation cycle, the current search, being conducted by a nominating committee, is for one public member, one non-practitioner member and five practitioner members. All stakeholders, including the general public, are invited to apply or nominate candidates. 

For public member and non-practitioner vacancies, the nominating committee is interested in candidates from a wide range of relevant backgrounds, including: users of audited financial statements or assurance reports (e.g. institutional investors and analysts, audit committee members, and individuals from the corporate governance community); regulatory and audit inspection or oversight bodies; preparers of financial reports; academics; and individuals in the government sector.

For practitioner vacancies, nominations of candidates from small- and medium-sized practices (SMPs) are strongly encouraged.

Candidates should have experience with auditing and/or assurance issues and sufficient knowledge of the subject matters considered by the IAASB to be important to contribute effectively to the board’s work. English proficiency is essential and gender balance remains an area of focus for the board. Additionally, nominations from currently underrepresented regions (Latin America, Africa and the Middle East), are strongly encouraged.

The IAASB is an independent standard-setting body that serves the public interest by setting, under its own authority, high-quality international standards. The nominations process, with public interest oversight, aims to select the most suitable candidates for the available positions, while also aiming to achieve gender, regional and professional balance.

For more information and to learn how to submit an application before the January 31, 2020 deadline, please visit the nominating committee’s web page.

A global search has begun for highly qualified volunteers to join the International Ethics Standards Board for Accountants (IESBA) as board members for an initial term of up to 3 years, commencing January 1, 2021. The search, being conducted by a nominating committee, is for five non-practitioner and public members and one practitioner member.

Candidates should have experience with issues relating to ethics and independence and sufficient knowledge of the subject matters considered by the IESBA to contribute effectively to the board’s work.

Anyone, including the general public, is invited to apply or nominate candidates. For practitioner vacancies, nominations of candidates from small- and medium-sized practices (SMPs) are strongly encouraged. For non-practitioner vacancies, the nominating committee is particularly interested in applications from: 

• preparers of financial statements;
• users of audited financial statements or assurance reports, including investor representatives;
• members of the corporate governance community;
• regulators;
• policy makers; and
• academics.

English proficiency is essential, and an emphasis will be placed on nominations from the Asia, Latin America-Caribbean and Africa-Middle East regions. Additionally, gender balance remains an area of focus for the board.

The IESBA is an independent standard-setting body that serves the public interest by setting high-quality, internationally appropriate ethics standards for professional accountants. The nominations process, with public interest oversight, aims to select the most suitable candidates for the available positions, while also aiming to achieve gender, regional and professional balance.

Deadline for submitting applications is January 31, 2020. Please visit the nominating committee’s web page for more information about the vacancies and to learn how to submit an application via our online database.

Professional accountants and other business professionals are often faced with complicated, real world situations that are not black and white and demand pragmatic and ethical solutions. To help address these challenging situations, IFAC is releasing the first installment in a new series titled: Exploring the IESBA Code.

Through twelve monthly installments, Exploring the IESBA Code will take an in-depth look at the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).  Each installment of the series will highlight different aspects of the Code in real-world situations, in a manner that is relatable and practical. A special focus will be placed on recent revisions to the Code.

The first installment of the Exploring the IESBA Code deals with the five Fundamental Principles of ethics, which establish the standard of behavior expected of all professional accountants - a standard which enable accountants to uphold their responsibility to act in the public interest.

To read and download this and future installments, visit the IFAC website.

The Exploring the IESBA Code was published by IFAC and does not form part of the Code. It is non-authoritative and is not a substitute for reading the Code. 

For more information about the Code, please click here.

CONSIDERATIONS FOR MANAGEMENT WHEN DETERMINING ACCOUNTING ESTIMATES AND RELATED DISCLOSURES

The International Standard on Auditing (ISA) 540 (Revised) Implementation Working Group has prepared an Audit Client Briefing (Briefing) based on the Canadian Auditing Standard (CAS) Audit Client Briefing of the Chartered Professional Accountants of Canada (CPA Canada), published in October 2019 and is used with permission of CPA Canada.

DOWNLOAD THE FULL BRIEFING HERE

The purpose of this Briefing is to make chief financial officers, other senior management responsible for financial statement preparation, and staff directly involved in determining accounting estimates aware of matters to consider in preparing for the auditor’s requests pertaining to ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures.

This Briefing provides an overview of:

• Management’s responsibilities in determining when accounting estimates are needed;
• Management’s responsibilities regarding the main components of an estimation process; and
• The impact on management because of changes to the auditor’s responsibilities, including broad questions auditors are likely to ask those involved in the detailed aspects of the estimation process.

This Briefing does not constitute an authoritative pronouncement of the International Auditing and Assurance Standards Board (IAASB), nor does it amend, extend or override the ISAs or other of the IAASB’s International Standards. It is not meant to be exhaustive and reading this Briefing is not a substitute for reading the ISAs.

IFAC, the International Federation of Accountants, today announced its first ever female-majority Board. The approval of eight Board members, including five women, occurred at IFAC’s annual Council meeting in Vancouver.

New IFAC Board members and their nominating member organizations are:

• Yeong Kyun Ahn, Korean Institute of Certified Public Accountants
• Joan Curry, Chartered Accountants Ireland
• Caroline Gardner, Chartered Institute of Public Finance and Accountancy
• Winnie Nyamute, Institute of Certified Public Accountants of Kenya
• Fiona Wilkinson, Consultative Committee of Accountancy Bodies
• Ismaila Zakari, Institute of Chartered Accountants of Nigeria

Returning members re-appointed for a second term of service to IFAC’s Board are:

• Tommye Barie, Association of International Certified Professional Accountants
• Idésio da Silva Coelho, Jr., Instituto dos Auditores Independentes do Brasil and Conselho Federal de Contabilidade

Over the course of the past decade, IFAC has committed to improve gender balance on its Board and committees. Through dedicated and ongoing outreach to attract a diverse slate of candidates, with a particular focus on gender diversity, 12 of IFAC’s 23-member Board are now women.

Dr. In-Ki Joo, IFAC President, said, “On behalf of IFAC, I congratulate and welcome all of our new and returning Board members. Each of these individuals was nominated and approved on the basis of their leadership qualities, business acumen, and passion for the future of our profession. We are particularly pleased that, as a result of our deliberate focus on gender diversity, the majority of these well-qualified Board members are women.”

“I am equally pleased to congratulate the newest members of the IFAC organization,” Dr. Joo continued. “Joining IFAC demonstrates a serious commitment to the advancement of our profession, and should be recognized and applauded as a significant milestone on the path of continuous growth and improvement.”

The following Associates have been approved as IFAC Members:

• Albanian Institute of Certified Accountants
• Instituto Salvadoreño de Contadores Públicos
• Certified Practising Accountants of Papua New Guinea

In addition, five professional accountancy organizations have been approved to join IFAC as Associates:

• Colegio de Contadores Públicos de Pichincha y del Ecuador
• Colegio Hondureño de Profesionales Universitarios en Contaduría Pública
• Lao Chamber of Professional Accountants and Auditors
• Ordem dos Contabilistas e Auditores de Moçambique
• Suriname Chartered Accountants Institute

Collectively, this signifies new representation of IFAC in Ecuador, Laos, Mozambique, and Suriname.

“We are committed to representing—and advancing—the global accounting profession. With a majority-female Board and Associates in four new countries, this is a proud moment for IFAC,” said Dr. Joo.

The new Board appointments and membership decisions were approved at IFAC’s 2019 Council meeting, held from November 13 to 14 in Vancouver, Canada.

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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

The International Auditing & Assurance Standards Board announces the following new appointments and re-appointments:

New Appointments:

• Sue Almond, United Kingdom
• Julie Corden, Canada
• Josephine Jackson, United Kingdom

Re-appointments:

• Len Jui, China
• Lyn Provost, New Zealand

Re-appointment as Deputy Chair:

• Fiona Campbell, Australia

"It is a pleasure to welcome Ms. Almond, Ms. Jackson, and Ms. Corden, now in a permanent capacity, to the International Auditing and Assurance Standards Board.  I look forward to the diverse perspectives they will bring to our group of passionate, dedicated volunteers.  I am also delighted that Fiona Campbell will serve as Deputy Chair for another year," said Tom Seidenstein, IAASB Chair.  " I want to thank Karin French and Marek Grabowski for their steadfast service to our board.  Their contributions were invaluable, and we are grateful for their dedication and commitment".

IFAC has updated its Practice Management Guide to reflect changes made to the 2018 International Code of Ethics for Professional Accountants (including International Independence Standards), effective June 2019. The update includes:

• Changes to section 7.2 ‘Professionalism and Ethics within the Firm';
• Information on identifying, evaluating and addressing threats; and
• Available safeguards to reduce threats to an acceptable level.  

The Guide provides comprehensive guidance to help small- and medium-sized practices operate more efficiently in the increasingly complex and competitive global marketplace for professional services. The fourth edition is organized into eight stand-alone modules, with a comprehensive range of topics including:

• Strategic planning
• Practice models
• Firm expansion
• Managing staff
• Leveraging technology
• Client relationship management
• Risk management
• Succession planning

In order to help member organizations and practices maximize the Guide's use, IFAC provides a companion manual with suggestions on making best use of the Guide. 

Click here to access the updated Practice Management Guide and Companion Manual on the IFAC website.

(New York, NY) – The International Auditing and Assurance Standards Board (IAASB) is requesting public comments on its Exposure Draft focused on conforming amendments to the International Standards as a result of the revised International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code). Comments are to be received no later than January 10, 2020.

The project aims to align the IAASB’s International Standards with the revisions to the IESBA Code by way of conforming amendments, thus ensuring that the IAASB's International Standards can continue to be applied together with the IESBA Code.

“It is important that the International Standards acknowledge the enhancements made to the IESBA Code and achieve alignment to the fullest extent possible on overlapping issues” said Tom Seidenstein, chair of the IAASB. “Many jurisdictions use both the International Standards and the IESBA Code and it is in the public interest that these be able to operate in concert.”

This project falls under the umbrella of IAASB-IESBA coordination, a strategic commitment of the two Boards, and builds on their overarching commitment for enhanced connectivity and coordination to better serve the public interest.

To add your comments to this timely issue, click HERE.

About the IAASB 
The 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. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org. v