At the World Congress of Accountants (WCOA) 2014 in Rome, the session “Translating International Standards and Guidance: Best Practices and Tools to Achieve Quality Translation” offered an opportunity to share best practices, technical tools, and IFAC^® policies on translation. Interest in this session ran high and WCOA 2014 officials had to relocate it to accommodate a larger audience.

Chaired by Kelly Anerud, IFAC Deputy Director, Intellectual Property, it provided a comprehensive overview of resources and competencies required to achieve high-quality and widely accepted translations of international standards and related guidance.

In addition to the Chair’s presentation, “Translating International Standards and Guidance,” the session included presentations by Hilde Blomme, Deputy CEO of the Federation of European Accountants (FEE), who focused on the challenges of representing one region with many languages, by Javier Quintana, Secretary of the Ibero-American Cooperation Framework (IberAm Project) and CEO of the Instituto de Censores Jurados de Cuentas de España, who discussed the experiences of the IberAm Project in working with several regions and numerous countries represented by one language; and by Mariarita Cafulli, Head of the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabli Translation Department, who shared useful tools and resources, such as computer software, for translating international standards.

IFAC's Intellectual Property, Translations, & Permissions Department recently introduced the “IFAC Translator Forum,” a subgroup of IFAC’s LinkedIn group. The “IFAC Translator Forum,” which has nearly 100 members, is targeted to IFAC-designated translating body contacts and related stakeholders as a way to share best practices, collaborate, submit questions and offer responses on topics related to the translation of standards, handbooks, guides, and tools. To request membership, click “Join” and the request will be reviewed by the group manager. Membership in the IFAC LinkedIn group, which is open to all, is required to join the IFAC Translator Forum. 

Following a meeting at WCOA 2014 between 10 organizations representing 30 Francophone nations, the French translating bodies are progressing in their efforts to produce a more formal structure for collaboration on high-quality French translations of international standards and other IFAC publications. Representatives from a subgroup of the French translating bodies will meet with IFAC in March to work on a draft cooperation framework and to prepare a preliminary Memorandum of Understanding. 

In December, the IberAm Project published the authorized Spanish translation of IFAC’s Statements of Membership Obligations (SMOs). IFAC officials called this a “milestone development” for the IberAm Project, as it represents the first document to have undergone the complete IberAm process, which includes translation, transfer to translation memory software, review, approval, formatting, and publication. The IberAm Project Memorandum of Understanding was signed on October 2, 2012, at IFAC’s New York offices with the goal of developing single, high-quality Spanish language translations of international standards and other IFAC publications.

The IberAm Project Executive Committee recently approved the final translation of the International Auditing and Assurance Standards Board^® (IAASB^®) 2013 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, Volume I, and other documents, including publications from the IAASB, the International Ethics Standards Board for Accountants^® (IESBA^®), the Professional Accountants in Business (PAIB) and Professional Accountancy Organization (PAO) Development committees, and a summary of IFAC Policy Position Papers 1-8. These translations will now proceed to be published in various formats over the coming months. Other documents, such as IAASB Exposure Drafts, IAASB video modules, Small and Medium Practices (SMP) guidance, toolkits from the PAO Development Committee, and publications from the PAIB Committee are in various stages of the IberAm process and will be published over the coming months.

IFAC’s Intellectual Property, Translations & Permissions department encourages stakeholders to utilize the recently launched Online Permission Request and Inquiry (OPRI) Management system, which is designed to streamline the process of submitting requests for reproduction, translation, and information. OPRI allows registered users to submit new requests by type (reproduction, translation of international standards, translation of other publications, or inquiry) as well as manage all their requests in one place, duplicate existing requests to save time when placing new ones, and view the status of pending requests.

IFAC is now using social media to update stakeholders on recently translated publications and resources, via IFAC’s @IFAC_Update handle on Twitter. Here are the latest translated publications:

• In Danish (FSR): International Standard on Assurance Engagements (ISAE) 3000, (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information;
• In Kazakh (MoF): Handbook of International Public Sector Accounting Pronouncements, 2014 Edition
• In Romanian (CFAR): IFAC SMP Quick Poll: 2013 Year-End Round-Up;
• In Slovak (SKAU): Guide to Quality Control for Small- and Medium-Sized Practices, Third Edition;
• In Ukrainian (AAU): Guide to Quality Control for Small- and Medium-Sized Practices, Third Edition;
• In Ukrainian (AchU): Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements; 2013 Edition;
• In Bulgarian (ICPAB): Handbook of International Education Pronouncements, 2014 Edition; and
• In Arabic (IASCA): Handbook of International Public Sector Accounting Pronouncements, 2014 Edition

IFAC has recently revised and updated the Frequently Asked Questions (FAQs) section of the Intellectual Property, Translations & Permissions web page. This section includes 50 responses related to areas of interest such as IFAC’s relevant policies and processes, performing quality translations, the process for obtaining an agreement with IFAC to perform or reproduce translations, terminology used in translations, and use of IFAC logos, trademarks, and graphics. The FAQs are a useful resource for a range of stakeholders, including IFAC member bodies, national standard-setting bodies, adopting authorities, training providers, and commercial publishers. 

IFAC’s Translations Database is adding new enhancements, including an improved search/sort function, publication title in the language of translation, and links from the translated publications to the original English-language documents. The publicly available Translations Database lists authorized translations of IFAC publications, including the international standards, and the ongoing enhancements are aimed at improving user-friendliness and expanding its search functionality. These new features are expected to be available during the second quarter of 2015.

The Ethics Board approved the Consultation Paper, Improving the Structure of the IESBA Code of Ethics for Professional Accountants (the Code). The paper consults on approaches that could be taken to improve the clarity and usability of the Code through revising its structure, thereby facilitating its adoption, effective implementation, and consistent application. Among other matters, the consultation is seeking stakeholders’ input on:

• restructuring the Code by more clearly distinguishing requirements from guidance;
• reorganizing the content of the Code, including rebranding it, or parts of it, as international standards;
• using simpler language and shorter sentences; and
• identifying a firm’s or an individual’s responsibility for compliance with the Code in particular circumstances to facilitate compliance and enforcement.

The paper also includes illustrative examples to show how the restructured Code might be presented. The Consultation Paper will be released in the coming week and open for public comment through early-February 2015. In connection with this project, a web-based version of the Code—to enhance accessibility and navigability—is currently in development and is expected to go live in the coming weeks.

The Ethics Board approved for exposure the following proposed changes to Part C of the Code, which addresses professional accountants in business (PAIBs):

• Section 320—revisions dealing, in particular, with misuse of discretion when preparing or presenting financial information. The revisions include enhanced guidance on how discretion can be misused in a manner intended to mislead, and the PAIB’s actions when faced with misleading information.
• Section 370—a new section to guide PAIBs on responding to pressure from superiors or others to breach the fundamental principles, and on not placing pressure on others that would result in a breach of the fundamental principles.

Conforming changes have been proposed to other sections of Part C of the Code.

The Exposure Draft is expected to be issued by mid-November 2014. Comments will be requested by mid-February 2015. As part of Phase 2 of this project, the Ethics Board will consider preliminary issues pertaining to a review of Section 350, addressing inducements, at its January 2015 meeting.

In September, following approval by the Public Interest Oversight Board that due process had been followed, the Ethics Board released its Strategy and Work Plan, 2014-2018.

The IESBA Strategy & Work Plan, 2014-2018 highlights the board’s priorities and planned actions toward achieving its objective of setting high-quality ethics standards for professional accountants that are widely adopted around the world. The Strategy and Work Plan lays out four inter-connected strategic themes that articulate the board’s vision over the medium to longer term:

• maintaining a high-quality Code for application by professional accountants globally;
• promoting and facilitating the adoption and effective implementation of the Code;
• evolving the Code for continued relevance in a changing global environment; and
• increasing engagement and cooperation with key stakeholders.

A separate Basis for Conclusions has been prepared by staff to accompany the Strategy and Work Plan. 

The Ethics Board considered the feedback received from its three global roundtables, held in Hong Kong, Brussels, and Washington DC earlier this year, on its project addressing professional accountants’ responsibilities to respond to suspected non-compliance with laws and regulations (NOCLAR). It also considered Task Force proposals regarding a revised framework for how auditors, professional accountants in public practice providing non-assurance services, senior-level PAIBs, and other PAIBs could respond to suspected NOCLAR.

The Ethics Board will discuss a revised draft of the proposed new sections (225 and 360), and related changes to other sections of the Code, at its January 2015 meeting in preparation for re-exposure by mid-2015. 

The Ethics Board considered significant comments received on its Exposure Draft, Proposed Changes to Certain Provisions of the Code Addressing Non-Assurance Services for Audit Clients, and related Task Force proposals, aimed at enhancing the independence provisions in Section 290 (Independence—Audit and Review Engagements). The discussion focused on the three areas covered by the Exposure Draft:

• the proposed withdrawal of the emergency exception provisions pertaining to bookkeeping and taxation services provided to audit clients that are public interest entities (PIEs);
• additional guidance on safeguards on and clarification regarding what constitutes management responsibility; and
• enhanced guidance and clarification on the concept of “routine or mechanical” services relating to the preparation of accounting records and financial statements for non-PIE audit clients.

The Ethics Board will seek input from its Consultative Advisory Group in November 2014 regarding the significant comments received on the Exposure Draft and the board’s indicative direction forward on the key issues. The Ethics Board will consider a revised draft of the proposed changes to the Code with a view to approval at its January 2015 meeting.

The 2014 editions of the handbooks from the following boards supported by the International Federation of Accountants^® (IFAC^®) are now available:

• 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^®).

To access electronic copies of the handbooks for personal use, purchase print copies, or find information on recent developments and outstanding Exposure Drafts and Consultation Papers from each of the boards, visit their respective web pages: www.iaasb.org, www.iaesb.org, www.ethicsboard.org, and www.ipsasb.org.

The 2014 Handbook of the Code of Ethics for Professional Accountants incorporates several revised pronouncements that are now effective—addressing a breach of a requirement of the Code, conflicts of interest, and the definition of “those charged with governance.” It also contains the revised definition of “engagement team” (effective for audits of financial statements for periods ending on or after December 15, 2014). In connection with the Structure of the Code project (see above), a web-based version of the Code—with enhanced accessibility and navigability—is currently in development and expected to go live in the coming weeks. 

Earlier this year, the International Federation of Accountants (IFAC) launched the Global Knowledge Gateway™, a new digital hub for the global accountancy profession: www.ifac.org/global-knowledge-gateway. The Gateway serves professional and aspiring accountants in all sectors by providing streamlined access to relevant resources, news, discussions, and thought leadership in nine different areas, including ethics. Resources in this area, designed to serve both accountants in business and in practice, include surveys and reports on business ethics issues, as well as practical guidance on implementing the IESBA Code and other codes of conduct.

We invite you to explore and contribute your views to the discussions, recommend content that you find the most useful, suggest new resources, and subscribe to receive customized updates on new content added to the Gateway. Register to take full advantage of all of these features. 

Several months ago, the Ethics Board launched a Twitter handle to increase engagement with the public and with professional accountants worldwide, enhance its profile and brand, and increase the transparency and timeliness of its communications. Stay current on the Ethics Board’s projects, publications, and meeting decisions, as well as the latest accounting and business ethics news, trends, and resources from around the world. We hope you’ll stay connected and join us: @Ethics_Board.

Meetings of the Ethics Board and the Ethics Board’s Consultative Advisory Group (CAG) are open to the public. The next meeting of the board will be held in London, United Kingdom, on January 12–14, 2015. The next CAG teleconference will be held on November 18, 2014, and the next physical CAG meeting will be held in New York, New York, USA, on March 10–11, 2015.

For more information and to register to attend an Ethics Board or Ethics Board CAG meeting as an observer, visit Ethics Board Meetings and Ethics Board CAG Meetings respectively.

The 2014 World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy, November 10-13. Themed 2020 Vision: Learning from the Past, Building the Future, the WCOA 2014 will be held at the Auditorium Parco della Musica. Almost 4,000 professionals from around the world will convene at this quadrennial IFAC event. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will shape its future. Days 2 and 3 feature sessions on ethics: “Fighting Corruption and Fraud: The Role of Professional Accountants” and “Code of Ethics: Shaping Behavior.” View the full agenda and register here.

Online registration closes October 31, 2014. If you are unable to register on the website, please contact the WCOA Secretariat: wcoa2014@adriapoint.it.

To streamline the process for submitting requests for reproduction, translation, and information, IFAC has launched its new Online Permission Request and Inquiry Management (OPRI) system. The new online function allows registered users to submit new requests by type (reproduction, translation of international standards, translations of other publications, and inquiry) as well as manage all their requests in one place, duplicate existing requests to save time when placing new ones, and view the status of pending requests.

Typical users of the system include:

• Relevant staff of IFAC’s designated translating bodies (or organizations wishing to become a designated translating body) seeking permission to translate IFAC’s copyrighted publications, including the international standards;
• Relevant staff of IFAC’s member bodies and associates, or other relevant organizations seeking permission to modify, adapt, reproduce, or adopt all or part of IFAC’s copyrighted publications, including the international standards;
• Those seeking permission to reproduce illustrations or extracts from IFAC’s content (for example in textbooks or other publications);
• Commercial publishers;
• Training providers; and
• Other organizations or individuals seeking information or wishing to use IFAC’s intellectual property.

To better reflect the breadth of activities under its purview, IFAC’s Translations & Permissions department has changed its name to “Intellectual Property.” The activities provided by the department, across IFAC and the independent standard-setting boards, include not only matters related to translations of IFAC publications and reproduction permissions for use of copyrighted content, but also to the administration of IFAC’s numerous trademarks.  

The World Congress of Accountants (WCOA) 2014 will explore the evolution of the accountancy profession and showcase the innovations that will shape its future. WCOA 2014 features a workshop session entitled “Translating International Standards and Guidance: Best Practices and Tools to Achieve Quality Translations” on Wednesday, November 12, from 11:15 a.m. to 12:45 p.m.  The workshop will be informative as well as interactive, with opportunities for discussion, questions and answers. Thanks to all who completed the survey, the responses to which will be shared during the workshop. View the WCOA 2014 event program.

IFAC is now using social media to update stakeholders on recently translated publications and resources. Via IFAC’s @IFAC_Update on Twitter, it has recently shared news about the following translations:

• Russian (CPARK): Tools and Resources to Support the Development of the Accounting Profession
• Bulgarian (ICPAB): Guide to Review Engagements
• Persian (IACPA): Handbook of the Code of Ethics for Professional Accountants

IFAC will use social media to provide updates about other translations as they become available.

IFAC is currently working on enhancing its Translations Database, which lists authorized translations of IFAC publications, including the international standards, with the aim of improving user-friendliness and expanding its search functionality. The Translations Database is a publicly available resource that helps IFAC serve the public interest and promote adoption and implementation of international standards.

• Bosnian-Croatian-Serbian (CEF):  Policy Paper, Process for Considering GFS Reporting Guidelines during Development of IPSASs
• Estonian (MoF): ISRE 2400 (Revised): Engagements to Review Historical Financial Statements
• Polish (AAP): Review Engagements-A Value-Adding Client Service
• Russian (CEF):  Policy Paper, Process for Considering GFS Reporting Guidelines during Development of IPSASs
• Russian (AAS): Development and Management of Written Examinations. Information Paper (Revised)
• Spanish (INCP):
  • Monthly Update, May 2014
  • IESBA press release, May 20
  • Global Digest, June 2014
  • IAESB press release, July 23
  • IESBA eNews, August 2014
  • IPSASB eNews, August 2014
  • IAESB press release, Aug 13
  • IAESB eNews, August 2014
  • IAESB press release, August 25
  • IPSASB press release, August 27
• Turkish (POAASA): International Standard on Review Engagements (ISRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity; International Standards on Related Services (ISRS) 4400, Engagements to Perform Agreed-Upon Procedures Regarding Financial Information

In mid-July, the IESBA^® launched a Twitter handle to increase engagement with the public and with professional accountants worldwide, enhance its profile and brand, and increase the transparency and timeliness of its communications. Stay current on the IESBA’s projects, publications, and meeting decisions, as well as the latest accounting and business ethics news, trends, and resources from around the world. We hope you’ll stay connected and join us at @Ethics_Board.

The 2014 Handbook of the Code of Ethics for Professional Accountants™ is now available. The 2014 edition incorporates several revised pronouncements that were published previously and are now effective—addressing a breach of a requirement of the Code, conflicts of interest, and the definition of “those charged with governance.” It also contains the revised definition of “engagement team” (effective for audits of financial statements for periods ending on or after December 15, 2014).

To access the handbook for personal use or to purchase print copies (US $65.00, plus shipping & handling), see Handbook of the Code of Ethics for Professional Accountants.  In connection with the Structure of the Code project (see below), a web-based version of the Code—with enhanced accessibility and navigability—is currently in development and expected to go live in Q4. 

The Ethics Board approved, subject to confirmation by the Public Interest Oversight Board (PIOB) that due process has been followed, its Strategy and Work Plan, 2014-2018, expected for publication by early October 2014. As part of its due process to seek stakeholder input in the plan’s development, the board previously issued a draft of the strategy and work plan for public consultation. View the Consultation Paper and 38 comment letters.

The Ethics Board approved for public comment changes to the provisions in Section 290 of the Code of Ethics for Professional Accountants (the Code) dealing with long association of senior personnel with an audit client. The Exposure Draft (ED) responds to several issues raised by stakeholders, including issues of independence in appearance. The ED broadly covers the following areas:

• Strengthening the general provisions that apply to all audit engagements;
• Increasing the mandatory cooling-off period for the engagement partner on the audit of a client that is a public interest entity;
• Strengthening the restrictions on the type of activities that can be undertaken by any former key audit partner during the cooling-off period; and
• Ensuring the concurrence of those charged with governance with respect to the application of certain exception paragraphs.

The ED also includes corresponding changes to Section 291 of the Code dealing with long association of senior personnel with an assurance client. The ED is expected for release in mid-August with a 90-day comment period.

The Ethics Board considered the Task Force’s preliminary draft Consultation Paper, setting out proposals for improving the clarity and usability of the Code. Among other matters, the board discussed:  

• The approach to coordinating a review of safeguards in the Code (see non-assurance services below) with the work on restructuring the Code;
• The approach to clarifying responsibility for compliance with the Code in particular circumstances;
• Alignment of the timing of deliverables on other projects in progress with the restructuring work; and
• General structure and reorganization matters.

In connection with this project, a web-based version of the current 2014 Code is currently being developed to improve its accessibility and navigability. The IESBA will consider a revised draft of the Consultation Paper with a view to approval at its October 2014 meeting.

The Ethics Board considered and provided input on proposed changes to the following sections of Part C—Professional Accountants in Business of the Code:

• Section 320—an existing section addressing the preparation and reporting of information; and
• Section 370—a proposed new section addressing the topic of pressure by superiors and others to breach the fundamental principles.

Among other matters, the board also discussed Task Force proposals addressing the misuse of discretion under the applicable reporting framework in order to mislead. At its October 2014 meeting, the board will consider revised drafts of the proposed changes to Part C with a view to approval for public exposure.

In May, the Ethics Board released an Exposure Draft (ED), Proposed Changes to Certain Provisions of the Code Addressing Non-Assurance Services for Audit Clients, aimed at enhancing the independence provisions in Section 290 (Independence—Audit and Review Engagements) by:

• Giving auditors providing non-assurance services to an audit client additional guidance and clarification on what constitutes management responsibility, including enhanced guidance on how auditors can better satisfy themselves that client management will make all the judgments and decisions that are its responsibility;
• With respect to the preparation of accounting records and financial statements for non-public interest entity (non-PIE) audit clients, offering better guidance and clarification regarding the concept of “routine or mechanical” services; and
• Removing the provision that permits an audit firm to provide certain bookkeeping and taxation services to PIE audit clients in emergency situations.

The ED also includes proposed enhancements to corresponding non-assurance services provisions in Section 291 of the Code with respect to assurance clients. Comments are requested by August 18.

Please note: An editorial correction has been made to the ED. The mark-up section now shows the proposed deletion of paragraphs, 290.164, 290.174, and 291.145, which had inadvertently been omitted in the original file.

In advance of the final pronouncement addressing non-assurance services, the Ethics Board had considered developing a position paper on the topic, but agreed at its July meeting that a work stream on safeguards should be completed before determining the nature, scope, and timing of such a paper. The board asked the Task Force to present a project proposal on safeguards for board consideration as soon as possible. The board will consider the significant comments received on the ED at its October 2014 meeting.

In May and June, the Ethics Board held its first two global roundtables, in Hong Kong and Brussels, and met with its national standard setter liaison group to gain feedback from stakeholders on the project addressing professional accountants’ responsibilities regarding suspected non-compliance with laws and regulations. The roundtables were very successful, with active participation and engagement from over 50 invited senior-level delegates at each event.

At its July meeting, the board received an update on these discussions and it will receive an update on the third and final global roundtable (Washington, DC on July 10) at its next meeting in October. Based on the input received and other considerations, the board will decide whether to produce and issue a revised Exposure Draft on responding to suspected non-compliance with laws and regulations in 2015.

Earlier this year, the International Federation of Accountants (IFAC) launched the Global Knowledge Gateway, a new digital hub for the global accountancy profession: www.ifac.org/gateway. The Gateway serves professional and aspiring accountants in all sectors by providing streamlined access to relevant resources, news, discussions, and thought leadership in nine different areas, including ethics. Resources in this area, designed to serve both accountants in business and in practice, include surveys and reports on business ethics issues, as well as practical guidance on implementing the IESBA Code and other codes of conduct.

We invite you to explore and contribute your views to the discussions, recommend content that you find the most useful, suggest new resources, and subscribe to receive customized updates on new content added to the Gateway. Register to take full advantage of all of these features. 

Meetings of the Ethics Board and the Ethics Board’s Consultative Advisory Group (CAG) are open to the public. The next meeting of the board will be held in New York, New York, USA, on October 13-15, 2014. The next CAG meeting will be held in New York, New York, USA, on September 9-10, 2014.

For more information and to register to attend an Ethics Board or Ethics Board CAG meeting as an observer, visit Ethics Board Meetings  and Ethics Board CAG Meetings respectively.

The 2014 World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy, later this year. Themed 2020 Vision: Learning from the Past, Building the Future, the WCOA 2014 will be held November 10-13 at the Auditorium Parco della Musica. More than 4,000 professionals from around the world will convene at this quadrennial IFAC event. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will shape its future. Day 3 features a session on ethics: “Code of Ethics: Shaping Behavior.”  View the full agenda and register here.

The WCOA also provides a global platform for organizations and firms to share their projects and visions via various sponsorship opportunities. For more information, please contact info@wcoa2014rome.com or Dimarco@wcoa2014rome.com.

The IPSASB is now tweeting. Follow us at @IPSASB_News. 

The 2014 Handbook of International Public Sector Accounting Pronouncements is available for purchase. It contains the complete set of the International Public Sector Accounting Standards Board® (IPSASB®)'s pronouncements on International Public Sector Accounting Standards™ (IPSASs™). The 2014 edition also includes Recommended Practice Guidelines (RPGs), with the introduction of RPG 1—Reporting on the Long-Term Sustainability of an Entity’s Finances and RPG 2—Financial Statement Discussion and Analysis, which were both approved in June 2013 and issued in July 2013.

The IPSASB has published Exposure Draft (ED) 55, Improvements to IPSASs 2014, which proposes changes based on amendments from the International Accounting Standards Board's annual improvements and minor scope amendments projects. ED 55 proposes improvements to four standards (IPSAS 1, IPSAS 17, IPSAS 28, and IPSAS 31). The improvements project allows for minor unrelated amendments to be exposed together and approved in a single standard. The deadline for comment is September 30, 2014. 

In a recent issue of Public Finance International, current CIPFA International Chair and former IFAC CEO Ian Ball discusses the consequences of the Greek government’s failure to adopt international accounting standards. “The Greek government’s failure to adopt international accounting standards means the fiscal opacity that existed before the financial crisis remains substantially unchanged. The costs to Greece and Europe are high but avoidable,” he writes. 

At its June 2014 meeting, the IPSASB approved a revised Consultation Paper, The Applicability of IPSASs to Government Business Enterprises and Other Public Sector Entities. It seeks comments on the description of the characteristics of public sector entities for which the IPSASB is developing standards and its approach to government business entities. The CP is scheduled for publication in August. 

Also during its June meeting, the IPSASB approved in principle two new chapters—Measurement and Presentation in General Purpose Financial Reports—for its Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities (the Conceptual Framework). The Conceptual Framework underpins the development of International Public Sector Accounting Standards and Recommended Practice Guidelines. Its first four chapters were published in January 2013. The remaining chapters on Elements—Definition and Recognition, are planned for approval in September, along with the preface to the Conceptual Framework. This will bring the IPSASB’s highest-priority project to completion.

Thomas Müller-Marqués Berger was recently interviewed by The Accountant (subscription required) on the topic of Germany’s public sector accounting landscape and the nation’s reluctance to move to accrual accounting. “The biggest weakness of the German public sector from an accounting perspective is that there is no requirement for the federal government, the state governments or the local governments to use these standards,” he told the magazine. “As a consequence, while the federal government is using cash accounting, some of the states have developed their own accrual accounting rules.”

IPSASB member Guy Piolé was recently appointed Chair of one of the Chambers at the French Court of Auditors, succeeding Gilles-Pierre Lévy. An IPSASB member since 2013, Mr. Piolé is also a member of the CNOCP (Council of Public Sector Accounting Standards).

The next IPSASB meeting will be held in Brussels, Belgium, Sept. 15-18, 2014. Full details are available on the IPSASB Meetings page. Members of the public may register as observers with registration closing one week prior to the first day of the meeting. 

For the first time, the World Congress of Accountants (WCOA)  will include “Translating International Standards and Guidance: Best Practices and Tools to Achieve Quality Translations”—a workshop to review relevant IFAC^® procedures to help achieve high-quality and widely accepted translations, share best practices, including information on electronic translation tools. It will be particularly useful for IFAC member bodies and adopting authorities in developing their strategies and approach to translating international standards and pronouncements, and may serve as a catalyst to establishing a more permanent type of user forum for translating bodies.

The workshop will be held Wednesday, November 12; indicate your interest in attending when registering at the WCOA website: www.wcoa2014rome.com. In preparation for the session, we invite you to complete a short 3-minute survey consisting of 8 multiple-choice questions.

To make it easier and more efficient to manage your translations and permissions requests, IFAC will launch a new permissions request management system in the coming months. If you haven’t already registered on the IFAC website, you can create an account here.

Registered users will be able to use the new platform to manage all their requests in one place, clone existing requests to save time when placing new ones, and view the status of pending requests. Look for the new system on the Translations & Permissions home page in the third quarter. 

The availability of high-quality, faithful, and sustainable translations is vital to the adoption and effective and consistent implementation of international standards, and IFAC appreciates the resources and assistance that its designated translating bodies provide to help achieve that goal.

The IFAC Board decided in 2013 to introduce an annual license/waiver fee for using IFAC-copyrighted materials, which generally applies to third parties wishing to reproduce materials translated by IFAC’s designated translating bodies.Such third parties might include non-IFAC member body adopting authorities, national standard setters, public sector entities, or IFAC member bodies other than the designated translating body. The intention of this fee is to help ensure sustainable translation processes. The amount of the annual license/waiver fee depends on a number of factors, such as the content requested, the rights granted by IFAC, and the size of the economy where the translated material will be used.

Before using or undertaking any translation, please check with IFAC to ensure you have appropriate permission. IFAC staff will advise of the process and next steps, as well as the relevant fee, if any. Inquiries may be addressed to permissions@ifac.org. 

In October 2012, IFAC and its member bodies in Argentina, Mexico, and Spain agreed to establish an Ibero-American Cooperation Framework (the IberAm Project) to collaborate on a sustainable process for producing a single, high-quality, faithful Spanish translation of international standards and IFAC publications, press releases, and newsletters.

During meetings in March and June 2014, the IberAm Executive Committee discussed the status of the 2013 work plan and approved the work plan for 2014. The two plans together include approximately 2,500 pages of translated material. The IberAm Review Committee, consisting of institutional representatives from nine Spanish-speaking countries, has held virtual meetings on a regular basis to review and approve the translated materials and to ensure a seamless and efficient collaboration. Look for these Spanish translations as they are finalized and become available later in 2014.

The Spanish translation of the 2013 Handbook of International Public Sector Accounting Pronouncements, issued by the International Public Sector Accounting Standards Board^® (IPSASB^®), is available for purchase from the IFAC website. Facilitated by IFAC, with funding assistance from the World Bank, the translation was performed by the Department of Accounting and Finance at the University of Zaragoza, Spain. It was reviewed by an international committee consisting of public sector experts from Argentina, Chile, Mexico, Spain, and Uruguay.

IFAC member bodies are encouraged to contact the relevant public sector entities in their countries, especially governmental entities such as ministries of finance, public sector accounting standard setters, and supreme audit institutions, to make them aware of the availability of this important publication. Purchase now on the IFAC website: 2013 Manual de Pronunciamientos Internacionales de Contabilidad del Sector Público.

Earlier this year, the National Organization for Financial Accounting and Reporting Standards (NOFA) Foundation became a designated translating body for the Russian version of the International Auditing and Assurance Standards Board^® (IAASB^®)’s pronouncements. The NOFA Foundation is also the official translating body for the Russian version of International Financial Reporting Standards.

The Review Committee established by the NOFA Foundation represents the Russian Federation and other countries where Russian is an official language—Belorussia, Kazakhstan, and Kyrgyzstan. The Review Committee has finalized the translation of key terms from the pronouncements and made significant headway on the 2013 IAASB Handbook, which is expected to be completed in 2015. To date, the committee has translated and reviewed International Standard on Quality Control^™ (ISQC^™) 1, and many International Standards on Auditing^™ (ISAs^™) are in the process of translation and review.

In the meantime, the Russian translation of the 2012 edition of the IAASB Handbook, translated by the Russian Collegium of Auditors, a designated translating body, is available for purchase in print and electronic format. See the IFAC Translations Database. 

With the addition of Thai and Uzbek, IFAC publications have now been translated into 48 languages. To view translated publications, please see the Translations Database.

• Arabic—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2013); Handbook of the Code of Ethics for Professional Accountants (2013)
• Bulgarian—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2013)
• Dutch—Guide to Practice Management for Small- and Medium-sized Practices, Third Edition (2012); International Standard on Assurance Engagements^™ (ISAE^™) 3420, Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus (2011); Proposed International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to Review Historical Financial Statements (2011)
• French—IFAC SMP Quick Poll: 2013 Year-End Round-Up (2013); Discussion Paper, The Role and Expectations of a CFO: A Global Debate on Preparing Accountants for Finance Leadership (2013)
• Finnish—Guide to Quality Control for Small- and Medium-Sized Practices, Third Edition (2011)
• Georgian—The Standard for Limited Assurance Review Engagements: Addressing the Needs of Small- and Medium-sized Entities (2012)
• Hungarian—ISRE 2400 (Revised), Engagements to Review Historical Financial Statements (2013); International Standard on Auditing (ISA) 610 (Revised), Using the Work of Internal Auditors (2013)
• Latvian—ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment (2012); ISA 610 (Revised), Using the Work of Internal Auditors (2012)
• Portuguese—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012)
• Russian—Handbook of International Public Sector Accounting Pronouncements (2013)
• Romanian—International Education Standards^™ (IES^™) 1–7
• Slovenian—ISA 610 (Revised), Using the Work of Internal Auditors (2013); ISRE 2400 (Revised), Engagements to Review Historical Financial Statements (2013)
• Spanish—IFAC Monthly Updates; Global Digests; various press releases and newsletters from IFAC and standard-setting boards; “Developing and Reporting Supplementary Financial Measures” (2014); “Review Engagements—A Value-Adding Client Service” (2014) 
• Thai—ISAE 3420, Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus (2013); ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment (2013); ISA 610 (Revised 2013), Using the Work of Internal Auditors and Related Conforming Amendments (2013); Evaluating and Improving Internal Control in Organizations (2012); Evaluating and Improving Governance in Organizations (2009)
• Turkish—ISAs 530, 540, 550, 560, 570, 580, 600, 610, 700, 705, 706, 710, and 720 (2012)
• Uzbek—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012); Handbook of the Code of Ethics for Professional Accountants (2012)

We’d like to thank IFAC member bodies and others that have been active in their efforts to translate the resources and international standards published on IFAC’s website. As a reminder, when finalizing translations, member bodies should follow the appropriate copyright protocol and guidelines for the use of the IFAC logo. Please refer to individual translation agreements and the graphics guidelines provided on our website.

In addition, IFAC reminds all translating bodies to follow the proper steps to ensure the inclusion of relevant copyright statements and other formalities in the reproduction and/or translation of any IFAC materials. In addition, IFAC requests that member bodies remind adopting authorities to ensure that they have the necessary translation or reproduction agreements in place with IFAC, and to attribute content appropriately. Please use the Translations & Permissions Frequently Asked Questions (FAQs) as a resource and contact permissions@ifac.org with any additional questions.

IFAC hosts and distributes hundreds of publications on its website. Register now to create a free account to continue to access the international standards set by the independent boards supported by IFAC, as well as to the valuable guidance, thought leadership, and policy positions developed by IFAC and its committees. As of June 25, 2014, registration is required to continue to access IFAC’s Publications & Resources.

Only registered users can customize their subscriptions to press releases, issues of eNews, and The Latest from the Global Knowledge Gateway™; submit comments on exposure drafts and consultation papers; nominate a board or committee member; and comment, recommend, and suggest content for the Global Knowledge Gateway. Registered users will able be able to submit translation and permission requests (see above) when the new platform is launched in the third quarter. 

The English versions of the 2014 Handbook of International Education Pronouncements and Handbook of International Public Sector Accounting Pronouncements are now available on the IFAC website. Print copies are available for purchase, and electronic versions may be downloaded from the website for personal use. The Handbook of the Code of Ethics for Professional Accountants will be published in July, and the Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements will be available in the third quarter of this year. 

The Ethics Board approved for exposure proposed changes to the Code of Ethics for Professional Accountants (the Code) aimed at enhancing the independence provisions in Section 290 (Independence—Audit and Review Engagements) by:

• giving auditors providing NAS to an audit client additional guidance and clarification on what constitutes management responsibility, including enhanced guidance on  how auditors can better satisfy themselves that client management will make all the judgments and decisions that are its responsibility;
• with respect to the preparation of accounting records and financial statements for non-public interest entity (non-PIE) audit clients, offering better guidance and clarification  regarding the concept of “routine or mechanical” services; and
• removing the provision that permits an audit firm to provide certain bookkeeping and taxation services to PIE audit clients in emergency situations.

The IESBA also approved for exposure proposed enhancements to corresponding NAS provisions in Section 291 of the Code with respect to assurance clients.

The Exposure Draft was released last week, with comments requested by August 18. The board will consider a draft paper setting out its views and positions on NAS and related matters at its July 2014 meeting.

The Ethics Board received a brief update on recent discussions with certain stakeholders, including its Consultative Advisory Group. It also received an update on the preparations for its series of global roundtables in Asia-Pacific on May 20 (Hong Kong), Europe on June 13 (Brussels), and the Americas on July 10 (Washington DC).

The Asia-Pacific roundtable on May 20 was a successful event, with close to 55 senior-level individuals participating. They represented a wide cross-section of stakeholder groups, including regulators and public authorities, preparers/professional accountants in business, standard setters, IFAC member bodies, and firms (both large and small). Ten jurisdictions were represented: Australia, China (mainland), Hong Kong SAR, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, and Taiwan.

The discussions were robust and lively, with a high level of participation from the delegates. The roundtable was observed by the Chair of the IESBA Consultative Advisory Group.

Preparations for the next roundtable to be held June 13 in Brussels are in the final stages, and the board is expecting about 55 senior-level attendees, including observers from the Public Interest Oversight Board (PIOB). As space is limited, attendance is by invitation only. Expressions of interest for the upcoming roundtables, including name, job title, organization, and preferred location, should be emailed to KaushalGandhi@ethicsboard.org.

The board will consider the input received from the roundtables and a possible re-Exposure Draft at its October 2014 meeting.

The Ethics Board made significant headway in developing proposed enhancements to the long association provisions in Section 290 of the Code. Among other matters, the board discussed what the  appropriate duration of the cooling-off period for key audit partners (KAPs) should be for audits of public interest entities (PIEs) with the objective of bringing “fresh eyes” to the audit; whether, if the Lead Audit Engagement Partner (LAEP) were to be subject to a longer cooling-off period, the requirement should apply to LAEPs involved in the audits of all PIEs or only LAEPs working on the audits of listed entities; and what activities the rotated KAP would be permitted to undertake for an audit client during the cooling-off period.

The Ethics Board further discussed the issue of permissible activities during the cooling-off period and provided directional input to the Task Force in a teleconference held at the end of April. The board will consider a revised draft of the proposed enhancements to the Code with a view to approving an Exposure Draft at its July 2014 meeting.

Based on the final report and recommendations of its Working Group, the Ethics Board approved a project on restructuring the Code to improve its usability. The project will explore a number of improvements, including increasing the visibility of the requirements; clarifying responsibility for compliance with the Code’s requirements; clarifying the language in the Code; reorganizing parts of the Code; and developing a web-based Code.

The board will consider a draft Consultation Paper setting out the proposed approach to the restructuring work at its July 2014 meeting. See also “Decoding the Code” in A Plus magazine to learn more about this project.

As part of the first phase of the project to review Part C—Professional Accountants in Business, the Ethics Board considered the following issues and proposed changes to the Code:

• possible enhancements to Section 320 addressing the preparation and reporting of information, including guidance to assist professional accountants in business (PAIBs) in better understanding their responsibilities for  issues such as misuse or abuse of discretion under the applicable reporting framework, as well as transaction-based misrepresentation; and
• a new section including guidance to assist PAIBs in dealing with pressure from superiors and others to breach the fundamental principles.

The board will further consider issues and revised drafts of these sections and proposed changes to other related sections of Part C at its July 2014 meeting.

The Ethics Board considered three international developments as potentially warranting its attention as emerging issues: the MG Rover case in the UK; aggressive tax avoidance; and the regulatory developments concerning audit reform in the European Union. The board will further consider matters arising from its emerging issues initiative at its October 2014 meeting.

The Ethics Board considered significant comments received on its Consultation Paper, Proposed Strategy and Work Plan, 2014-2018, and its Planning Committee’s preliminary proposals in response to these comments. The board will consider a revised draft of its strategy and work plan for 2014-2018 with a view to approving it at its July 2014 meeting.

Earlier this year, the International Federation of Accountants (IFAC) launched the Global Knowledge Gateway, a new digital hub for the global accountancy profession: www.ifac.org/gateway. The Gateway serves professional and aspiring accountants in all sectors by providing streamlined access to relevant resources, news, discussions, and thought leadership in nine different areas, including ethics. Resources in this area, designed to serve both accountants in business and in practice, include surveys and reports on business ethics issues, as well as practical guidance on implementing the IESBA Code and other codes of conduct.

We invite you to explore and contribute your views to the discussions, recommend content that you find the most useful, suggest new resources, and subscribe to receive customized updates on new content added to the Gateway. Register to take full advantage of all of these features.

The 2013 Handbook of the Code of Ethics for Professional Accountants is available to download or purchase. The 2013 edition contains the final revised pronouncements addressing a breach of a requirement of the Code and conflicts of interest, and the revised definition of “engagement team.” To access the handbook for personal use or purchase print copies, see Handbook of the Code of Ethics for Professional Accountants.  

The 2014 edition of the Handbook is expected to be published in the coming weeks.

Meetings of the Ethics Board and the Ethics Board’s Consultative Advisory Group (CAG) are open to the public. The next meeting of the board will be held in New York, USA, on July 7-9, 2014. The next CAG meeting will be held via teleconference on June 30, 2014.

For more information and to register to attend an Ethics Board or Ethics Board CAG meeting as an observer, visit Ethics Board Meetings  and Ethics Board CAG Meetings respectively.

The IESBA is searching for a senior technical manager to join its staff team based in New York. Qualified candidates will currently be, or have had experience, at the senior manager level or higher in professional practice, a professional accountancy organization, a relevant standard setter, or the office of a public sector auditor. For a complete job description and required skills and experience, see Working at IFAC. Qualified candidates should send a resume to jobs@ifac.org.

The IFAC Nominating Committee has issued a Call for Applications for Ethics Board Chair. The successful candidate should have effective leadership, communication, and strategic skills; demonstrated technical and professional competency; and a commitment to the IESBA and its mission to serve the public interest. The preferred candidate is an individual who is not a professional accountant. Candidates who are professional accountants will need to demonstrate their independence from the accountancy profession. Additional information is available on the IFAC website. Applications are due by June 6, 2014.

The next World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy later this year. Themed 2020 Vision: Learning from the Past, Building the Future, the 2014 WCOA will be held November 10-13 at the Auditorium Parco della Musica. More than 4,000 professionals from around the world will convene at this quadrennial IFAC event. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will shape its future. Register Now.

The WCOA also provides a global platform for organizations and firms to share their projects and visions via various sponsorship opportunities. For more information, please contact info@wcoa2014rome.com or Dimarco@wcoa2014rome.com.

IFAC, in cooperation with the World Bank and the Department of Accounting and Finance at the University of Zaragoza, Spain, recently finalized the Spanish translation of the 2013 Handbook of International Public Sector Accounting Pronouncements, issued by the International Public Sector Accounting Standards Board (IPSASB). The translation was reviewed by an international committee consisting of public sector experts from Argentina, Chile, Mexico, Spain, and Uruguay. IFAC is grateful for the valuable contributions and kind assistance of all those involved. The publication is an important resource for those in the public sector; IFAC member bodies are encouraged to visit the IFAC website and contact the relevant public sector entities in their countries to make them aware of the availability of this important publication of translated pronouncements. The print version of the translated handbook is available for sale from the IFAC website.

In October 2012, IFAC and its member bodies in Argentina, Mexico, and Spain agreed to establish an Ibero-American Cooperation Framework (the “IberAm project”) to collaborate on a sustainable process for producing a single Spanish translation for international standards and IFAC publications. Due to the large number of countries where Spanish is an official language, the availability of high-quality Spanish translations of international standards is essential to facilitate effective global adoption and implementation. The IberAm project includes a broad representation of Spanish-speaking countries and seeks to collaborate and coordinate the translating resources of relevant member bodies more efficiently for the benefit of the global accountancy profession.

The IberAm Review Committee is actively working on the review of more than 1,500 pages of material translated in 2013. The review is expected to be finalized in March 2014. Additionally, the Executive Committee of the IberAm project is scheduled to meet in early March to discuss ongoing translation and review efforts, as well as priorities for 2014.

The Instituto Nacional de Contadores Públicos (INCP), the Colombian Ministry of Commerce, Industry and Tourism, and IFAC recently signed agreements enabling official adoption of the pronouncements of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) in Colombia. The availability of a single, high-quality Spanish translation of these pronouncements is an essential element in facilitating such adoption. These translations were produced as a result of the Ibero-American Cooperation Framework (the “IberAm project,” see item 2 above). This development highlights the increasing adoption of pronouncements from these boards in non-English speaking countries, with the Latin American region being of particular economic importance. IFAC would like to extend its gratitude to INCP for the valuable and ongoing assistance it is providing to facilitate adoption of the international standards in Colombia.

Following a recent agreement, the National Organization for Financial Accounting and Reporting Standards (NOFA) Foundation has become a designated translating body for the Russian version of the International Auditing and Assurance Standards Board (IAASB)’s pronouncements. This agreement is an important step in enabling adoption of the pronouncements of the IAASB in the Russian Federation. The NOFA Foundation is currently translating the 2013 IAASB Handbook, which is expected to be completed in 2015.

The NOFA Foundation, a non-commercial organization, promotes the rules and standards for financial accounting and reporting in the Russian Federation and encourages implementation by Russian enterprises. The NOFA Foundation is also the official translating body for the Russian version of the International Financial Reporting Standards.

The most recent translation of the IAASB Handbook (the 2012 edition) was performed by the Russian Collegium of Auditors (RCA), and is available for purchase on the RCA website. For more information on RCA and its translation efforts, please see the article, “RCA: Leveraging Translation Expertise,” in the August edition of IFAC News. IFAC thanks both RCA and the NOFA Foundation for their instrumental efforts in producing Russian translations of the international standards.

The translation activities of the International Arab Society of Certified Accountants (IASCA) and the Saudi Organization for Certified Public Accountants (SOCPA), two of the designated bodies for Arabic translation of materials from IFAC and the independent standard-setting boards, were detailed in the latest issue of IFAC News. Both organizations seek to advance accountancy, auditing, and related fields through the distribution of professional knowledge in Arabic. These translations serve professional accountants in 22 Arabic-speaking nations. IFAC would like to extend its gratitude to IASCA and SOCPA for their efforts in producing high-quality translations for the Arabic speaking world. Links to resources translated into Arabic can be found in the Translations Database.

Materials designed to help professional accountancy organizations (PAOs) strengthen and grow have recently been translated into French. Establishing and Developing a Professional Accountancy Body, originally published by the IFAC PAO Development Committee, covers the roles and responsibilities of a professional accountancy organization, education and examinations, and capacity development. A French translation of the PAO Development Committee’s Tools and Resources to Support the Development of the Accounting Profession, which includes case studies, practical illustrations, and supplementary guidance to support organizations in expanding and strengthening their role and responsibilities, is in progress and is expected to be available soon. The two documents make up the PAO Development Committee’s toolkit for PAOs. IFAC would like to thank the Ordre des Experts Comptables de Tunisie for their efforts in the translation of these resources. 

To view translated publications, please see the Translations Database.

• Arabic—Handbook of International Public Sector Accounting Pronouncements (2013)
• Czech—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2013)
• Finnish—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Service Pronouncements (2013), Handbook of the Code of Ethics for Professional Accountants (2013)
• Farsi—Professional Accountancy Organization Development Committee Perspectives (2012) 
• French—Reporting on Audited Financial Statements: Proposed New and Revised International Standards on Auditing (ISAs) (2013), Handbook of International Public Sector Accounting Pronouncements (2012)
• Georgian—Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (2010)
• Hungarian—Statement of Membership Obligations (SMOs) 1-7 (Revised) (2012), International Education Standards (IES) 1,5,6,7 (Various Years)
• Kazakh—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012), Handbook of International Public Sector Accounting Pronouncements (2013)
• Latvian—International Standard on Review Engagements 2400 (Revised 2012): Engagements to Review Historical Financial Statements (2012)
• Polish—Guide to Quality Control for Small- and Medium-Sized Practices (2011), Guide to Practice Management for Small- and Medium-Sized Practices (2012)
• Romanian—Proposals for Enhancing the Auditor’s Report: Potential Impact on Audits of Unlisted Entities (2013)
• Russian—Handbook of International Quality Control, Auditing, Review, Other Assurance and Related Services Pronouncements - Part I (2013)
• Spanish—Global Digest (September and October 2013), IFAC Update (September and November 2013), Translations & Permissions November eNews (2013)
• Thai—International Education Standard (IES) 6, Initial Professional Development – Assessment of Professional Competence (Revised) (2013), Handbook of the Code of Ethics for Professional Accountants (2012), International Auditing Practice Note 100 – Special Consideration in Auditing Financial Instrument (2013)
• Turkish—International Standards on Auditing (ISAs), 300-520 (2012)
• Ukrainian—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012)

IFAC’s Translations and Permissions Department would like to take the opportunity to thank IFAC member bodies that have been active in the effort to translate resources. IFAC recognizes that the time and labor costs of translating materials can be rather high; the dedication of the translating member bodies is greatly appreciated.

IFAC asks that, in the finalization of translations, member bodies follow the appropriate copyright protocol regarding use of the IFAC logo. Please refer to individual translation agreements and the graphics guidelines provided on our website. Please use the Translations and Permissions Frequently Asked Questions as a resource and contact Translations and Permissions (permissions@ifac.org) with any additional questions. 

IFAC is encouraged by the numerous translation efforts and activities by member bodies, regulatory authorities, and others internationally and views these efforts as progress toward global adoption and implementation of the international standards. However, there have been multiple instances of neglect regarding adherence to copyright protocol. IFAC asks that the proper steps be taken to ensure inclusion of relevant copyright statements and other formalities in the publication of any IFAC materials, including translations. Furthermore, IFAC requests that member bodies remind adopting authorities to ensure that they have the necessary translation or reproduction permission from IFAC, and to attribute content appropriately. Please contact Translations and Permissions (permissions@ifac.org) with any questions.

The IFAC Professional Accountants in Business (PAIB) Committee has issued a Discussion Paper, The Role of a CFO: A Global Debate on Preparing Accountants for Finance Leadership, to stimulate discussion on preparing accountants for finance leadership roles, including chief financial officer (CFO). Five principles highlight the changing expectation, scope, and mandate of the CFO and finance leadership roles. The paper recommends what actions professional accountancy organizations and employers can take to prepare professional accountants for career progression to finance leadership. These principles and recommended actions raise awareness of the implications for the education, training, and development of professional accountants.

Those interested in participating in this global debate on finance leadership can submit their comments electronically through the IFAC website, using the “Summit a Comment” button on the Discussion Paper page. Comments are requested by March 17, 2014.

An At a Glance summary and a collection of related resources were released along with the Discussion Paper and are available online.

IFAC is thrilled to introduce an exciting new development for the IFAC website: IFAC’s Global Knowledge Gateway, a portal for accountancy news, views, resources, and thought leadership from IFAC, its member organizations, and other notable groups and individuals. The Gateway answers the call for IFAC to better leverage its position as the global accountancy organization. Launching in the first quarter of 2014, the Gateway will be a place for professional accountants to access high-quality resources; learn about emerging areas of the profession like sustainability and integrated reporting; stay connected to the most pressing accountancy issues and news of the day; and interact by exchanging views, making recommendations, and sharing what they find with their own social networks.

The Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA) launched a dedicated website for financial leadership and performance (www.roleofcfo.com), which includes resources on starting a career in finance, mid-career options, and becoming and being a CFO. Recent reports include:

• Future Pathways to Financial Leadership looks at how the future role of the CFO is expected to evolve and the career experiences likely to be most beneficial to the next generation of CFOs.
• Digital Darwinism presents the top 10 technology trends that will have the potential to significantly reshape the business and accountancy landscape.

In response to what it sees as a competency crisis, the Institute of Management Accountants (IMA) has launched a new website “designed to encourage discourse focused on the issue of the talent gap in the accounting profession; spur action dedicated to finding solutions; and create a community among professionals, students, employers, and academics where they can share their views on the crisis.” This new campaign includes a presence on Twitter, Facebook, Google+, YouTube, and LinkedIn, as well as the website, www.CompetencyCrisis.org.

A recent In the Black article discusses the development of a high-performing finance team, including the view of some that CFOs aren’t focusing sufficiently on building teams that drive success and the “surprising” role individual talent plays in team success. The article says “scientific studies and company analysis have consistently shown that effective communication is pivotal in team performance, directly impacting a company’s bottom line.” In the Black is published by CPA Australia.

The Chartered Institute of Management Accountants (CIMA) and the Institute for Government have produced a blueprint for change that will lead to better decision making and increased efficiency in the public sector. Finance Leadership for Government strives to provide a “structure to open debate about the role of financial leadership at the centre of large, devolved organisations, and to support the UK government’s work in building a much stronger corporate leadership model.”

How has the role a finance director changed over the last 50 years? In a Finance & Management article, the Institute of Chartered Accountants in England and Wales (ICAEW) looks at the role a finance professional plays in a successful, sustainable business and how this role has changed over time. “Finance Director—Then and Now” accesses what has changed and what has stayed the same, and discusses a few of the “must-have” skills for a finance director and others in finance leadership positions.

A new report from CGMA, Managing Innovation: Harnessing the Power of Finance, identifies five areas “where finance leaders can have a critical impact on the way companies commercialize innovative ideas.” CGMA is a joint initiative of the American Institute of CPAs and the Chartered Institute of Management Accountants. The full report is available to CGMA members only.

In a new report, the Association of Chartered Certified Accountants (ACCA) discusses how finance managers in UK public services are coping with the demands placed on them and how they can demonstrate improved value by providing more effective strategic financial leadership. The Importance of Strategic Financial Leadership in the UK Public Sector in a Time of Financial Austerity finds that “public sector bodies—including local councils, health authorities and hospitals, police, fire, and ambulance services—need to be more proactive in making clear to decision makers the financial costs and benefits of particular courses of action.”

The Institute of Chartered Accountants in England and Wales (ICAEW) report, A CFO at the Cabinet Table? Strengthening UK Government Finances for the Future, recommends the UK government appoint a cabinet-level civil servant with financial skills to help improve management of public finances. This appointment would be comparable to a group CFO in the private sector.

Technology and the CFO: Focus Group Discussions on Data Security and Business Analysis, published by the Singapore CFO Institute and PwC, investigates the new challenges CFOs face in using new streams of data to accurately provide business forecasts while also mitigating the risk of data exposure.

The Economist will be hosting the 2014 CFO Summit on March 6, 2014, in London. The conference is a leading annual event that brings together more than 120 senior finance executives to discuss the evolution of the CFO function. Additionally, IFAC CEO Fayez Choudhury will be speaking during the event this year. Conference organizers are offering IFAC members, colleagues, and friends a 20% discount on admission (use the code IFAC20 when registering). For more information please visit: www.cfosummit.co.uk or email emeaevents@economist.com.

The Association of Chartered Certified Accountants (ACCA) has undertaken a major international research project investigating corporate culture and what influences individuals’ conduct in organizations. Specifically, the project looks at how behavior can be influenced for the long-term benefit of the company, its owners, and other stakeholders. Early last week, IFAC hosted three ACCA roundtable sessions in New York, allowing experts to exchange views on how corporate culture could be assessed and influenced. A previous roundtable series was held in London; additional roundtables are planned for Brussels, India, and the Middle East. For additional information, contact Paul Moxey, ACCA’s head of corporate governance and risk management, who is leading the research. 

The IESBA approved for issuance its Consultation Paper, Proposed IESBA Strategy and Work Plan, 2014–2018. The IESBA invites comment from all stakeholders by February 28, 2014.

Pursuant to its Exposure Draft, Responding to a Suspected Illegal Act, the Ethics Board considered revised proposals regarding a professional accountant’s responsibilities relating to responding to non-compliance with laws and regulations. Among other matters, the board discussed:

• The approach to disclosure of non-compliance with laws and regulations to an appropriate authority;
• The application of a materiality filter when responding to such a matter;
• Communication between a proposed accountant and an existing accountant when there is a change in professional appointment; and
• Documentation.

The Ethics Board agreed on a draft of the proposed changes to the Code as a basis for further consultation with stakeholders through three roundtables to be held in Asia-Pacific, Europe, and North America (see dates/locations below). The board will consider the input received from the roundtables and a possible re-Exposure Draft at its October 2014 meeting.

The Ethics Board considered the preliminary report and recommendations of its Structure of the Code Working Group regarding ways to improve the usability of the Code. Among other matters, the board discussed the Working Group’s recommendations with respect to enhancing the visibility of the Code’s requirements; clarifying responsibility for compliance with the Code’s requirements; simplifying the wording in the Code; repackaging parts of the Code; and developing a web-based Code. The board also considered examples of a possible approach to restructuring the Code. The Ethics Board will receive the Working Group’s final report and recommendations at its April 2014 meeting.

The Ethics Board considered issues and Task Force proposals with respect to possible enhancements to the long association provisions in Section 290, Independence – Audit and Review Engagements, to ensure that those provisions continue to provide robust and appropriate safeguards against the familiarity and self-interest threats arising from long association with an audit client. Among other matters, the board considered:

• Proposed improvements to the overall framework of principles addressing long association;
• Communication with those charged with governance;
• With respect to the rotation decision, time served prior to becoming a key audit partner on the audit engagement; and
• The duration of the cooling-off period and permissible activities during that period.

The Ethics Board will continue its deliberation of the issues and Task Force proposals at its April 2014 meeting.

The Ethics Board considered issues and Task Force proposals regarding a revised Section 320 of the Code addressing the preparation and reporting of information. Among other matters, the board discussed a proposal to strengthen the requirement to prepare or present information fairly, honestly, and in accordance with relevant professional standards; whether to deal separately with management information and external information in Section 320; and whether to prohibit professional accountants in business from preparing or presenting misleading financial information that complies with the applicable reporting framework.

The Ethics Board will further discuss issues and Task Force proposals with respect to Section 320, as well as with respect to proposed Section 370 addressing pressure from superiors and others to engage in unethical or illegal acts, at its April 2014 meeting.

The Ethics Board considered issues and Task Force proposals with respect to:

• The emergency exception provisions for bookkeeping and taxation services in Section 290 of the Code;
• Clarification of the “Management Responsibilities” subsection of Section 290; and
• Clarification of the provisions in the “Preparing Accounting Records and Financial Statements” subsection of Section 290 dealing with services of a “routine or mechanical” nature.

The board will consider a further draft of proposed changes to the relevant subsections of the Code, and a draft paper setting out its views and positions on non-assurance services and related matters, at its April 2014 meeting.

The Ethics Board approved the working process for its Emerging Issues and Outreach initiative and the Terms of Reference for its Emerging Issues and Outreach Committee to oversee the initiative going forward. The board will receive the first report from the Committee at its April 2014 meeting.

Meetings of the Ethics Board and the Ethics Board’s Consultative Advisory Group (CAG) are open to the public. The next meeting of the board will be held in Toronto, Canada, on April 7-9, 2014. The next meeting of the CAG will be held on March 10, 2014, in New York, USA.

For more information and to register to attend an Ethics Board or Ethics Board CAG meeting as an observer, visit Ethics Board Meetings  and Ethics Board CAG Meetings respectively.

The board will also hold three roundtables in 2014 to obtain additional stakeholder input regarding its project on responding to non-compliance with laws and regulations. The roundtables are scheduled as follows:

• Hong Kong – May 20, 2014
• Brussels, Belgium – June 3, 2014
• Washington DC, USA – July 10, 2014

The 2013 Handbook of the Code of Ethics for Professional Accountants is available to download or purchase. The 2013 edition contains the final revised pronouncements addressing a breach of a requirement of the Code and conflicts of interest, and the revised definition of “engagement team.” These changes will be effective in 2014; see the individual pronouncements for details. To download an electronic copy of the handbook for personal use or to purchase print copies, see Handbook of the Code of Ethics for Professional Accountants.