The International Public Sector Accounting Standards Board^® (IPSASB^®) has published a Consultation Document on its proposed Strategy and Work Plan for 2019-2023.

The draft Strategy emphasizes the importance of International Public Sector Accounting Standards (IPSAS) to public financial management reforms and proposes the following strategic objective:

• Strengthening Public Financial Management (PFM) globally through increasing adoption of accrual-based IPSAS.
• Delivered through two main areas of activity, both of which have a public interest focus:
• Developing IPSAS and other high-quality financial reporting guidance for the public sector; and
• Raising awareness of IPSAS and the benefits of accrual adoption.

The IPSASB proposes five themes that support the strategic objective and which will drive its work. 

To develop standards on critical areas in public sector accounting, the IPSASB proposes to take on three new major public sector specific projects – accounting for natural resources, discount rates and differential reporting – all of which will provide great public interest benefits to a wide range of constituents.  

The IPSASB will also continue to maintain convergence with International Financial Reporting Standards, where appropriate, and to work with others to promote IPSAS adoption and emphasize the importance of accrual-based information for strengthening PFM. 

“The IPSASB will continue to focus on developing standards addressing public sector specific financial reporting issues,” said IPSASB Chair Ian Carruthers. “However, the proposed strategy also emphasizes the importance of the IPSASB working with others to ensure that the great benefits of IPSAS implementation are more widely understood and that the power of accrual reporting in supporting PFM reforms is fully recognized.” 

This Consultation provides an opportunity for constituents to comment on the IPSASB’s strategic objective, supporting themes and work plan priorities for the period 2019-2023. Please submit your responses by June 15, 2018 to ensure your views are considered.

How to Comment
To access the Consultation and its summary At-a-Glance document, or to submit a comment, visit the IPSASB website at www.ipsasb.org. Comments are requested by June 15, 2018. The IPSASB encourages IFAC member organizations and regional accountancy organizations to promote the availability of this Consultation to their members and employees.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through the development of accrual-based International Public Sector Accounting Standards® (IPSAS®) and other guidance for use by governments and other public sector entities. It receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. 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.

(New York, January 31, 2018) – The International Public Sector Accounting Standards Board^® (IPSASB^®) today released for comment Exposure Draft (ED) 64, Leases.

ED 64 proposes a single right-of-use model for lease accounting that will replace the risks and rewards incidental to ownership model in IPSAS 13, Leases. ED 64 also proposes new public sector specific accounting requirements for leases at below market terms (also known as “concessionary leases”) for both lessors and lessees.

For lessees, ED 64 proposes accounting requirements that are converged with the International Accounting Standards Board’s IFRS 16, Leases, by requiring the recognition of a right-of-use asset and a lease liability for all leases, except for short-term leases and leases of low-value assets.

For lessors, ED 64 proposes a right-of-use model specifically designed for public sector financial reporting that differs from the risks and rewards incidental to ownership model for lessors in IFRS 16 by:

(a)             Continuing to recognize and measure the leased asset according to the applicable IPSAS; and

(b)             Recognizing a lease receivable and a liability (unearned revenue) as a result of the lease contract, except for short-term leases.

The proposals in ED 64 address common public sector lease contracts where a lessor and a lessee are part of the same economic entity.

“Leases, including concessionary leases, are very important financing mechanisms in the public sector and in international organizations,” said IPSASB Chair Ian Carruthers. “The proposals in ED 64 will provide better information on the financial impacts of leases and therefore enhance both the accountability of an entity for its management of resources and improve the quality of information for decision-making.”  

Comment Deadline: June 30, 2018

How to Comment
To access the Exposure Draft and its summary At-a-Glance document, or to submit a comment, visit the IPSASB website at www.ipsasb.org. Comments on the Exposure Draft are requested by June 30, 2018. The IPSASB encourages IFAC member organizations 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 the development of accrual-based International Public Sector Accounting Standards® (IPSAS®) and other guidance for use by governments and other public sector entities. It receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. 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.

Globally there are 60 countries that do not have professional accountancy organizations (PAOs), and, there are an additional 93 PAOs that do not have sufficient capacity to function effectively at all levels. IFAC (The International Federation of Accountants) continues its work in providing effective guidance to PAOs for enhanced governance. Strong governance enriches PAOs’ mission and vision, resulting in improved quality of financial management systems in emerging economies.

IFAC has released a new publication, ‘Focusing on Performance’, to build awareness within the PAO community to provide guidance and encourage best governance practices and principles within their current governance arrangements. The publication also features a self-assessment tool for PAOs to utilize when reviewing their governance framework. 

IFAC continues to identify and share PAO’s governance experiences and success stories via the Global Knowledge Gateway. Visit the site now for resources and thought leadership.

The International Auditing and Assurance Standards Board (IAASB) seeks between 15-20 people from around the world to advise on key challenges in assurance engagements relating to Emerging Forms of External Reporting (EER).

The Board is establishing a Project Advisory Panel (“PAP”) to support its Integrated Reporting Working Group (IRWG).

As a PAP member, successful candidates with strong experience in integrated reporting and will be an important part of the IRWG’s development of non-authoritative guidance on assurance engagements relating to emerging forms of external reporting.

The PAP will provide guidance on key challenges in assurance engagements over Emerging Forms of External Reporting (EER).

To join the panel and help shape the future of audit in an integrated reporting environment. Submit a brief profile on or before February, 2, 2018, to IAASBmeeting@iaasb.org. For more information on becoming a nominee, visit IAASB Releases Call for Nominations. And for more information on the IAASB project, visit IAASB’s Project Page.

Agreed-Upon Procedures (AUP) engagements provide a great opportunity for small- and medium–sized practices (SMPs) to grow, and deliver a valuable client service. IFAC (The International Federation of Accountants) has released a new publication, Agreed-Upon Procedures (AUP) Engagements: A Growth and Value Opportunity. The publication describes AUP engagements, when they are appropriate, and, identifies key client benefits. It also covers examples of financial and non-financial information AUP engagements and provides six short case studies with example procedures that might be applied.

Nominating Committee encourages all stakeholders—including the public—to nominate diverse candidates with strong leadership skills to serve the public interest and contribute to the work of the independent standard-setting boards.

See the Call for Nominations for more information, including available positions and requirements. Nominate via the Nominations Database by February 15, 2018. 

The excitement is building and registration is now open for the world’s largest gathering of accountants: the World Congress of Accountants (WCOA) 2018 in Sydney, Australia, November 5-8, 2018.

Held in the new International Convention Centre on the world-famous Sydney harbor and co-hosted by Chartered Accountants Australia and New Zealand and CPA Australia, the 20^th WCOA promises to be the biggest and most exciting congress yet.

IFAC’s member organizations have always played an important role in telling millions of professional accountants about the importance of WCOA. For WCOA 2018, that role has never been easier.

From now until the congress starts in Sydney next November, our member organizations will have access to innovative, regularly-updated multi-media tools and content including: press releases, social media content, news updates, videos, and photos.

IFAC members will be able to access these materials after subscribing to the WCOA newsletter for regular updates. In the coming weeks, you will receive the newsletter and information on how to set up an account and password to start utilizing the WCOA Brandfolder.

The WCOA 2018 program will explore a range of key themes, including:

• protecting the public interest and building prosperity;
• addressing the leadership challenge;
• embracing disruptive technologies and innovation;
• enhancing ethics and integrity; and
• exploring sustainable solutions to business, social enterprises, and economies.

ACCA and one of Australia’s leading universities, RMIT, are WCOA 2018’s debut sponsors but there are many additional sponsorship opportunities available. 

A call for nominations for the four international standard-setting boards is issued today. For nearly two decades, the global economy and financial market stability have been supported by the work of these international, independent standard-setting boards. Members of these boards are highly knowledgeable and informed individuals with insight and perspectives relevant to global standards.

The Call for Nominations for 2019 details the upcoming opportunities for qualified individuals to join the International Auditing and Assurance Standards Board (IAASB), International Accounting Education Standards Board (IAESB), International Ethics Standards Board for Accountants (IESBA), and International Public Sector Accounting Standards Board (IPSASB). Serving on these boards allows individuals with diverse professional backgrounds to contribute to the development of international standards, and to gain international experience while serving the public interest.

Nominations for the 22 open volunteer positions can come from all stakeholders, interested parties, and the general public. Travel support is available to qualified candidates from developing nations, self-nominees, and public members.

Gender equality is especially important to the Nominating Committee and, therefore, nominations of strong female candidates are strongly encouraged. Although candidates are ultimately selected based on professional background and experience, nominations from Africa, Asia, the Caribbean, Latin America, and the Middle East are particularly welcome to promote greater diversity on each board.

Candidates should have relevant subject-matter knowledge as well as strong English proficiency. Each board meets up to four times per year; the required time commitment is approximately 300 to 850 hours per year, depending on the board, member involvement, preparation, and travel time. 

The Nominating Committee requests submissions by February 15, 2018 via the Nominations Database. 

About the IAASB
The IAASB is an independent standard-setting board that 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).

About the IAESB
The IAESB is an independent standard-setting board that develops education standards, guidance, and information papers for use by IFAC member organizations under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAESB, and the IAESB 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 IAESB are facilitated by IFAC.

About the IESBA
The IESBA is an independent standard-setting board that develops ethical standards and other pronouncements for professional accountants worldwide under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IESBA, and the IESBA Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA are facilitated by IFAC.

About the IPSASB
The IPSASB is an independent standard-setting board that works to strengthen public financial management globally through the development of accrual-based International Public Sector Accounting Standards (IPSAS) and other guidance for use by governments and other public sector entities. It receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC).

About the Nominating Committee
The Nominating Committee follows an open and transparent process with public interest oversight to select the most suitable candidates for the available positions, while also aiming to achieve gender, regional, and professional balance. For more information about the Nominating Committee, its due process, or guidance in selecting candidates, please visit the Nominating Committee web page.

About the PIOB
The Public Interest Oversight Board (PIOB) is the global independent oversight body that seeks to improve the quality and public interest focus of the international standards formulated by the IAASB, IAESB and IESBA in the areas of audit and assurance, education, and ethics. Through its oversight activities, the PIOB works to bring greater transparency and integrity to the audit profession, thereby contributing to the enhanced quality of international financial reporting.

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) has published its initial views to the Monitoring Group Consultation Paper on changes to the international audit and ethics standard-setting process.

While IFAC agrees with some aspects of the Monitoring Group Consultation Paper, including the introduction of a multi-stakeholder model, broad geographical representation, sufficient checks and balances, and a review of the nominations process, it has concerns about far reaching proposals that would fundamentally dismantle the current model.

IFAC is also concerned that the consultation paper offers no evidence for such a drastic change and that fundamental key issues are omitted from the consultation or deferred, including: funding, oversight and governance, transition process, and an impact and risk assessment. Additionally, aspects of the Consultation Paper do not accurately reflect the current standard-setting arrangements, and offer proposals that are contrary to the Monitoring Group’s stated aims.

As an alternative to the proposals in the Monitoring Group Consultation Paper, IFAC proposes changes, which further enhance the independence of international standard setting while retaining separate audit and ethics boards and allowing ethics standards to remain applicable to all professional accountants, including auditors. They reinforce a multi-stakeholder approach across all aspects of standard setting, including the Public Interest Oversight Board (PIOB) and Nominating Committee; clarify the role of the PIOB and enhance transparent, independent public interest oversight; and advocate for a funding model with contributions from all stakeholders.

IFAC welcomes regular reviews of the standard-setting process that are in the public interest and ensure that the structures for international standard setting remain relevant in a changing world.

The Monitoring Group is considering all feedback from stakeholders. Comments should be submitted by February 9, 2018 to: MG2017consultation@iosco.org.

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 and Assurance Standards Board (IAASB) has agreed to collaborate with the World Business Council for Sustainable Development (WBCSD) to strengthen international assurance standards on sustainability reporting.

The collaboration supports WBCSD’s Redefining Value program and its objective to incorporate sustainability reporting within mainstream reporting, while ensuring external reporting follows the applicable IAASB international assurance standards (or their national equivalents). This consistency will champion the road to create greater alignment across reporting frameworks and build trust and confidence in sustainability reporting.

The WBCSD engaged IAASB as a key collaborator for this new project because it is the global standard setter for auditing and assurance standards.

Assurance of sustainability information continues to be an issue for preparers and assurance providers. Investors have consistently stated that assurance is important for building confidence in sustainability information in order for the information to be relevant and decision-useful. External assurance provides a critical role in building trust and confidence around sustainability information.

With support and funding from WBCSD, the IAASB approved a major new project to develop voluntary guidance on applying its existing assurance standards to emerging forms of external reporting (EER). EER goes beyond traditional financial reporting to include sustainability (or ESG) information and integrated reporting.

Recent publications by WBCSD and IAASB highlight the need to develop guidance on how EER assurance engagements are performing. This is because companies are at different stages of maturity in applying assurance and may face various barriers or challenges that they need help to overcome. WBCSD considers the independence of IAASB’s decision making to be a fundamental strength in supporting better EER assurance

Rodney Irwin, Managing Director of Redefining Value at WBCSD, said, “The scale of the challenges we face in moving towards a system that considers financial and non-financial information requires unprecedented collaboration. We have chosen to work with the IAASB because of their internationally renowned methods of setting the highest standards and encouraging companies/countries to adhere to them. We look forward to a working together towards an economy that values the true cost, true profit, true value of business.”

Work will begin in December 2017 and draft guidance on key challenges is expected to be published in Q4 2018.

Notes to Editors
This project is part of the Conservation and Financial Markets Initiative, a five-year effort of the Gordon and Betty Moore Foundation that aims to leverage the power of mainstream financial markets in order to help drive the food sector away from practices that degrade natural ecosystems.

About the World Business Council for Sustainable Development (WBCSD)
WBCSD is a global, CEO-led organization of over 200 leading businesses working together to accelerate the transition to a sustainable world. We help make our member companies more successful and sustainable by focusing on the maximum positive impact for shareholders, the environment and societies.

Our member companies come from all business sectors and all major economies, representing a combined revenue of more than $8.5 trillion and 19 million employees. Our global network of almost 70 national business councils gives our members unparalleled reach across the globe. WBCSD is uniquely positioned to work with member companies along and across value chains to deliver impactful business solutions to the most challenging sustainability issues.

Together, we are the leading voice of business for sustainability: united by our vision of a world where more than 9 billion people are all living well and within the boundaries of our planet, by 2050.

www.wbcsd.org
Follow us on Twitter and LinkedIn

About 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.

About the Gordon and Betty Moore Foundation:
The Gordon and Betty Moore Foundation fosters path-breaking scientific discovery, environmental conservation, patient care improvements and preservation of the special character of the Bay Area. Visit www.moore.org or follow @MooreFound.