The International Federation of Accountants^® (IFAC^®) today published in the Spanish language the Handbook of International Public Sector Accounting Pronouncements – 2014 Edition, and the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities (Conceptual Framework).             

These Spanish translations were undertaken by faculty members from the Department of Accounting and Finance, Faculty of Economics and Business Administration, at the University of Zaragoza, Spain. They have been reviewed by an international committee consisting of public sector experts from Argentina, Chile, Mexico, Spain, and Uruguay.

“This Handbook provides a comprehensive set of accounting requirements and guidance developed specifically for preparers of public sector financial statements. Due to the increasing pace of adoption in Spain and Latin America of these standards, this Spanish language translation is especially welcome,” said Andreas Bergmann, Chairman of the International Public Sector Accounting Standards Board^®(IPSASB^®).

The Conceptual Framework provides the IPSASB with the concepts that will underpin the development of International Public Sector Accounting Standards™ (IPSASs™) and Recommended Practice Guidelines (RPGs) in the coming years. It enables the IPSASB to improve the consistency of its standard-setting by strengthening the linkage between IPSASs. Additionally, the transparency of the concepts underpinning the development of IPSASs and RPGs enhances the IPSASB’s accountability.

The Conceptual Framework also responds to key public sector characteristics in its approach to elements (the building blocks of financial statements), the measurement of assets and liabilities, and the presentation of financial reports, while focusing on service recipients’ and resource providers’ needs for high-quality financial reporting information for both accountability and decision-making purposes.

The publication of these Spanish translations is timely, in advance of the 2015 CReCER conference, “Preserving Economic Gains and Investing in the Future: Promoting Growth through Improved Financial Accountability,” May 5-8 in Quito, Ecuador.

CReCER, which represents the Spanish acronym for Contabilidad y Responsibilidad para el Crecimiento Economico (Accounting and Accountability for Regional Economic Growth), is a regional event focusing on accounting and auditing. It promotes improved financial and fiscal reporting policies and practices in the public and private sectors in Latin America and the Caribbean, in support of the region’s economic growth and development agenda. The conference is co-sponsored by IFAC, the World Bank, Inter-American Development Bank, and the Global Public Policy Committee.

Additional Spanish translations of IFAC publications will be forthcoming.

For an overview of translations of IFAC’s publications, please visit the IFAC Translations Database.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC. The IPSASB receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland.

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 over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

The IAASB has continued its extensive outreach program contemplated in its five-year Strategy for 2015–2019: Fulfilling Our Public Interest Mandate in an Evolving World. It has compiled a detailed listing of its outreach activities for the period January 1, 2015 – April 29, 2015. 

Convened by the International Federation of Accountants^® (IFAC^®), the Accountability. Now. coalition, comprising civil society organizations, major international bodies, and the accountancy profession, met for the first time to develop strategies to encourage high-quality public sector financial reporting, greater government transparency and accountability, and empowered citizen engagement.

IFAC Chief Executive Officer Fayez Choudhury commented, “Poor public sector financial management can lead to economic stagnation and contraction; severe social problems that impact future generations; and a widened gulf between government and its citizens.

“IFAC initiated Accountability. Now. to help drive awareness of the critical need for high-quality, transparent, comparable public sector financial reporting, and the importance of engaging citizens in the process of holding governments to account.

“Some of the world’s poorest countries have the most to gain from having high-quality government reporting to better manage scarce public sector resources, attract investment, and promote accountability. IFAC will be focusing much of its efforts on helping these countries implement strategies to embrace high-quality reporting, based on International Public Sector Accounting Standards™, and encourage citizens to be part of the fiscal process.

“Understanding the true costs of government services, including all assets and liabilities, is central to good government and global growth. This is an issue that should be of concern to everyone, not just accountants and that’s the exciting part of Accountability. Now.

“The coalition represents a range of different organizations with the skills and experience to help push for a better social contract between governments and their citizens, at a time when there is enormous pressure on governments to work with tighter budgets and deliver better social outcomes,” Choudhury said.

In addition to the accountancy profession, represented by IFAC and the Big 6 accountancy firms, the coalition includes the Organisation for Economic Co-operation and Development and the Global Initiative for Fiscal Transparency, whose members include International Budget Partnership, International Monetary Fund, World Bank Group, and the Brazilian and Philippines Governments. 

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. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

To assist developing professional accountancy organizations (PAOs) around the world communicate their value and establish or advance public policy efforts, the International Federation of Accountants^® (IFAC^®) today released new guidance for PAOs, Finding Your Voice: PAOs, Advocacy, and Public Policy. The guidance offers practical advice to help PAOs create an environment in which professional accountants are listened to, can speak out on topical societal issues, and are seen as an integral, respected, and contributing part of society.

“The success of any PAO relies in large part on its ability to effectively communicate and demonstrate its relevance to society,” said IFAC CEO Fayez Choudhury. “As part of IFAC’s support for developing PAOs, we want to help them find and use their voices effectively in support of the public interest and in a way that builds trust and confidence—in them and in the profession.”

As the global body for the accountancy profession that regularly engages with PAOs around the world, IFAC is in the unique position of being able to collate and communicate good practices based on real experiences shared by existing and prospective IFAC member bodies.

The guidance outlines the essential elements of an effective approach to engaging stakeholders and includes practical tips as well as short case studies of PAOs who have experienced success.

“We know that the accountancy profession is most successful and sustainable when PAOs have the support of their national and regional stakeholders, including government and regulators,” said Alta Prinsloo, Executive Director, Strategy, and Chief Operating Officer, IFAC. “Obtaining that support requires sustained, targeted outreach to decision makers and stakeholders, focused on demonstrating a PAO’s value. This guidance will help PAOs on that journey.”

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. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants^® (IFAC^®) today published in Spanish the following documents developed for Professional Accountants in Business (PAIBs):

• International Framework: Good Governance in the Public Sector (full document)
• International Framework: Good Governance in the Public Sector (executive summary)
• Competent and Versatile: How Professional Accountants in Business Drive Sustainable Success (full document)
• Competent and Versatile: How Professional Accountants in Business Drive Sustainable Success (employer brochure)

The publication International Framework: Good Governance in the Public Sector was jointly developed by IFAC and the Chartered Institute of Public Finance and Accountancy (CIPFA) to help improve and encourage effective public sector governance. The Framework encourages better governed and managed public sector organizations by improving decision making and the efficient use of resources. Enhanced stakeholder engagement, robust scrutiny, and oversight of those charged with primary responsibility for determining an entity’s strategic direction, operations, and accountability leads to more effective interventions and better outcomes for the public at large.

Competent and Versatile supports the global accountancy profession in responding to changing expectations of society, financial markets, and organizations, and promotes the value of professional accountants in business to their organizations. Since organizational needs are evolving faster than ever, professional accountants need to adapt to these changes to best serve their employers, and maintain relevance and public trust. With this publication, the Professional Accountants in Business Committee is striving to support the global accountancy profession and help its members guide their organizations to create sustainable value.

These Spanish language translations are a result of the Ibero-American cooperation framework, known as the IberAm project. Established in 2012, the IberAm project—which includes IFAC and its member bodies Instituto de Censores Jurados de Cuentas de España, Federación Argentina de Consejos Profesionales de Ciencias Económicas, and Instituto Mexicano de Contadores Públicos—is an IFAC-authorized translation and review process that strives to achieve longer-term, sustainable processes for single, high-quality Spanish translations of international standards and other IFAC publications. The Interamerican Accounting Association, IFAC’s regional organization for Latin America and the Caribbean, is an observer to the project. In addition, the project involves a Review Committee of technical experts representing IFAC member bodies in nine Spanish-speaking countries.

Additional Spanish translations of IFAC publications will be forthcoming.

For an overview of translations of IFAC’s publications, please visit the IFAC Translations Database.

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 over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

About the PAIB Committee
The PAIB Committee serves IFAC member bodies and professional accountants worldwide who work in commerce, industry, financial services, education, and the public and the not-for-profit sectors. Its aim is to promote and contribute to the value of professional accountants in business by increasing awareness of the important roles professional accountants play, supporting member bodies in enhancing the competence of their members, and facilitating the communication and sharing of good practices and ideas.

El Consejo de Normas Internacionales de Contabilidad para el Sector Público^® (IPSASB^®) ha publicado su Directriz de Práctica Recomendada 3 (RPG 3), Reporte de la información sobre el funcionamiento de los servicios.

La RPG 3 brinda buenas directrices de práctica acerca del reporte de la información sobre el funcionamiento de los servicios. El desarrollo de esta RPG refleja el compromiso del IPSASB frente a los asuntos de información específicos al sector público, incluyendo aquellos relacionados con información adicional a los estados financieros.

"La prestación de servicios es la función principal de la gran mayoría de las entidades del sector público", afirmó Andreas Bergmann, presidente del IPSASB. "La información sobre el funcionamiento de los servicios es esencial para que los usuarios evalúen tanto los servicios suministrados como el uso efectivo y eficiente de los recursos por parte de las entidades del sector público cuando brindan tales servicios. La RPG 3 proporciona una orientación para apoyar la calidad de la información sobre el funcionamiento de los servicios —reportada por las entidades—, y ofrece un marco útil para aquellas entidades que aún no reportan esta información.

Esta directriz ofrece principios aplicables a la presentación de la información sobre el funcionamiento de los servicios, así como definiciones que establecen una terminología estandarizada para dicha información. Está dirigida a la entidad que reporta y abarca el periodo de información correspondiente a la información sobre el funcionamiento de los servicios. La RPG 3 también proporciona orientación sobre la selección de indicadores de funcionamiento que reflejen los logros de una entidad frente a sus objetivos de funcionamiento de los servicios, revelaciones sobre la base de la información reportada, y la discusión o el análisis relacionados con el funcionamiento de los servicios.

Según la RPG 3, la información sobre el funcionamiento de los servicios puede ser presentada, ya sea en el mismo informe con los estados financieros o en un informe individual; la directriz identifica igualmente los factores a considerar en la toma de decisión.

Acerca del IPSASB
El IPSASB desarrolla normas contables y guías para uso de las entidades del sector público. Las estructuras y los procesos que soportan las operaciones del IPSASB son facilitados por la IFAC. El IPSASB recibe el apoyo (tanto financiero como en especie) del Banco Mundial, el Banco Asiático de Desarrollo, los Contadores Profesionales Certificados de Canadá, el Consejo Sudafricano de Normas Contables, y los gobiernos de Canadá, Nueva Zelanda y Suiza.

Acerca de la IFAC^®
La IFAC es la organización global para la profesión contable, dedicada a servir el interés público a través del fortalecimiento de la profesión y contribuir en el desarrollo de economías internacionales sólidas. La IFAC se compone de 175 miembros y asociados en 130 países y territorios, representando aproximadamente a 2,5 millones de contadores en la práctica pública, la educación, el gobierno, la industria y el comercio.

The International Auditing and Assurance Standards Board^® (IAASB^®) today released International Standard on Auditing^TM (ISA^TM) 720 (Revised), The Auditor’s Responsibilities Relating to Other Information. The revisions aim to clarify and increase the auditor’s involvement with “other information”—defined in the standard as financial and non-financial information, other than the audited financial statements, that is included in entities’ annual reports.

“The annual report is a critical document for investors. It is in the public interest that an auditor undertakes an ‘intelligent read’ of an annual report, in the context of the  knowledge obtained in the audit, and perform certain procedures to ensure the annual report is not materially inconsistent with the audited financial statements,” explained Prof. Arnold Schilder, IAASB Chairman.

The standard also includes new requirements related to auditor reporting on other information that complement the changes arising from the IAASB’s new and revised Auditor Reporting standards, issued earlier this year. Concurrent with those standards, ISA 720 (Revised) will be effective for audits of financial statements for periods ending on or after December 15, 2016.  

“Which documents have been read and considered by the auditor and the results of the auditor’s work on those documents will now be transparent to auditor report users,” explained Kathleen Healy, IAASB Technical Director. “Specifically articulating the auditor’s responsibilities for other information, including the fact that the auditor’s opinion does not cover this information, will also give users the appropriate context in which to consider an entity’s annual report.” The standard also seeks to address the practical challenges that may arise when some or all of the other information is not available as of the date of the auditor’s report, and prescribes additional communications in auditor’s reports for listed entities in these circumstances.

The staff-prepared Basis for Conclusions, which explains the IAASB’s rationale for its decisions, and an At a Glance document, which explains the main changes from the extant ISA, are also now available.

About the International Auditing and Assurance Standards Board
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^®).

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 over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

The International Ethics Standards Board for Accountants^® (IESBA^®, the Ethics Board) today released Changes to the Code Addressing Certain Non-Assurance Services Provisions for Audit and Assurance Clients. The changes enhance the independence provisions in the Code of Ethics for Professional Accountants™ (the Code) by, in particular, no longer permitting auditors to provide certain prohibited non-assurance services to public interest entity (PIE) audit clients in emergency situations, and ensuring that they do not assume management responsibility when providing non-assurance services to audit clients.

“Auditor independence is foundational to public trust in the external audit,” said IESBA Chairman Dr. Stavros Thomadakis. “These enhancements will not only further reinforce independence but also promote greater consistency of application of the Code’s provisions in the 100-plus jurisdictions around the world where the Code is currently in use.”

The revisions include the removal of provisions that permitted an audit firm to provide certain bookkeeping and taxation services to PIE audit clients in emergency situations, as these were susceptible to being interpreted too generally. In addition, the revised provisions include:

• New and clarified guidance regarding what constitutes management responsibility; and
• Clarified guidance regarding the concept of “routine or mechanical” services relating to the preparation of accounting records and financial statements for audit clients that are not PIEs.

The revisions also include corresponding changes to the Code’s non-assurance services provisions with respect to other assurance clients.

“These changes focus on a few select, but important, areas of the Code. Nonetheless, the board continues to explore other areas where there may be a need for further enhancement,” noted IESBA Technical Director Ken Siong. “In this regard, the board has recently launched a new project that will review the clarity, appropriateness, and effectiveness of the safeguards against threats to auditor independence in the Code, particularly as these relate to the provision of non-assurance services to audit clients.”

To access the revised pronouncement, visit the IESBA website: www.ethicsboard.org. The changes will be effective April 15, 2016, with early adoption permitted. See the final pronouncement for details.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. 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. Please visit www.ethicsboard.org for more information.

About IFAC
The International Federation of Accountants^® (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 more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board^® (IPSASB^®) has published Recommended Practice Guideline 3 (RPG 3), Reporting Service Performance Information.

RPG 3 provides good practice guidelines on reporting service performance information. Development of this RPG reflects the IPSASB’s commitment to addressing public sector-specific reporting issues, including those that relate to information additional to the financial statements.

“Service provision is the primary function of the vast majority of public sector entities,” said IPSASB Chair Andreas Bergmann. “Service performance information is essential for users to evaluate the services provided and public sector entities’ efficient and effective use of resources to deliver those services. RPG 3 provides guidance to support the quality of service performance information already reported by entities and offers a useful framework for entities that have not yet started to report service performance information.”

RPG 3 provides principles applicable to the presentation of service performance information and definitions that establish a standardized service performance information terminology. It addresses the reporting entity and reporting period for service performance information. RPG 3 also provides guidance on the choice of performance indicators that show an entity’s achievements with respect to its service performance objectives, disclosures about the basis of the reported information, and service performance-related narrative discussion and analysis.

RPG 3 states that service performance information may be presented, either in the same report as the financial statements or in a separate report, and identifies factors to consider when making that decision.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC. The IPSASB receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland.

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. It is comprised of over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

Small- and medium-sized accountancy practices (SMPs) around the world are generally optimistic about the year ahead, according to the results of the 2014 IFAC Global SMP Survey. Out of four areas—audit and assurance; accounting, compilation, and other non-assurance/related services; tax; and advisory/consulting services—tax and business advisory were nearly tied in terms of pace of expected growth, with about half of respondents expecting at least moderate growth in each area.

While SMPs have long engaged in compliance-driven tax engagements for their clients, business advisory is emerging as an area of increasing importance to SMPs’ growth. In 2013, advisory ranked third out of the four service areas in terms of pace of projected growth, while in 2014, advisory (13%) edged out tax (11%) as the area most likely to drive substantial revenue increases in the coming year.

The results also indicate that advisory is now commonly offered by SMPs, as 93% of respondents provided some form of advisory in 2014. Tax planning is the most common type of advisory service by a wide margin, suggesting that tax services—whether in the realm of compliance or advisory—are driving revenues overall.

“The findings from the 2014 Survey are critical to increasing, and acting on, our understanding of this critical sector,” said IFAC SMP Committee Chair Giancarlo Attolini. “Over 60 IFAC member organizations and regional bodies participated in the survey, allowing us to collect an even broader sample of responses than in previous years, while contributing to our mission of collaborating with our member organizations in building and supporting a global community of SMPs.”

Additional findings from the survey included:

• The regulatory environment and competition topped the list of environmental factors most likely to impact SMPs over the next five years;
• Business intelligence/data analysis software and customer relationship management/document management are the two types of technology most likely to impact SMPs in the next five years; and
• While only 27% of SMPs are currently part of a network, association, or alliance, another quarter are considering joining one.

The survey also included a number of questions about SMPs’ clients—typically small- and medium-sized entities (SMEs). Key findings included:

• While the majority of respondents (87%) reported that at least some of their SME clients seeking financing experienced difficulty in 2014, for most respondents, a relatively small portion (less than 25% of total clients) experienced difficulty;
• Over half (54%) of respondents reported that at least one of their SME clients experienced some type of financial crime, but volume of crimes overall was low, with most respondents indicating that less than 5% of their total clients experienced a crime; and
• Many SMPs are part of the globalization trend; 44% of total respondents have at least 5% of clients that operate internationally, while 69% of the largest SMPs (those with 21+ partners and staff) have at least 5% international clients.

The 2014 IFAC Global SMP Survey was conducted in 21 languages between November 3 and December 29, 2014 and received 5,083 responses from 135 countries. The survey was undertaken in collaboration with lead researchers from the University of Dayton (US), and the report was authored by professors Timothy and Marsha Keune. IFAC wishes to thank the many member and regional organizations that helped with translation and distribution of the survey. See the full results and subscribe to SMP updates on the IFAC website: www.ifac.org/SMP.

Some regions, countries, and larger SMPs were not well represented in the survey results; caution should be exercised when attempting to generalize survey results to specific countries, specific regions, or SMPs of all sizes.

About the SMP Committee
The SMP Committee of the International Federation of Accountants^® (IFAC^®) represents the interests of professional accountants operating in small- and medium-sized practices (SMPs). The committee develops guidance and tools and works to ensure the needs of the SMPs are considered by standard setters, regulators, and policy makers. The committee also speaks out on behalf of SMPs to raise awareness of their role and value, especially in supporting SMEs, and the importance of the small business sector overall.

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. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.