Highlights from the IESBA's September 19-22 meeting in New York, NY. 

• 00:13 - Introduction: Ken Siong, IESBA Technical Director
• 00:47 - Highlights & Key Developments: Stavros Thomadakis, IESBA Chairman
• 05:40 - Structure of the IESBA Code, Don Thomson, Task Force Chair and former IESBA Member
• 07:35 - Safeguards: Gary Hannaford, IESBA Member
• 10:15 - Part C of the IESBA Code: Helene Agelii, IESBA Member
• 13:13 - Professional Skepticism – Richard Fleck, IESBA Deputy Chair
• 14:06 - Closing Remarks: Ken Siong, IESBA Technical Director

Highlights from the IESBA's June 19-21, 2017 meeting in New York, NY. 

• 00:12 - Introduction: Ken Siong, IESBA Technical Director
• 00:49 - Highlights & Key Developments: Stavros Thomadakis, IESBA Chairman
• 03:11 - Part C of the IESBA Code: Helene Agelii, IESBA Member
• 06:14 - Safeguards: Gary Hannaford, IESBA Member
• 09:28 - Professional Skepticism – Patricia Mulvaney, IESBA Member
• 13:59 - Structure of the IESBA Code, Don Thomson, Task Force Chair and former IESBA Member
• 16:07 - Fees Working Group – Ian McPhee, IESBA Member
• 17:24 - Closing Remarks: Ken Siong, IESBA Technical Director

IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.

The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. More than 20 representatives from regional and national professional accountancy organizations (PAOs) in Central Asia and Southeast and Eastern Europe attended, as well as practitioners, SMPs, and other stakeholders.

International and regional subject-matter experts shared important insights on professional ethics, efficiently implementing international standards, and practice management, among other topics.

Speakers and moderators included:

• Rachel Grimes, IFAC President
• Edward Olowo-Okere, Director, Governance, The World Bank
• Gunter Schall, Head of Private Sector & Development, Austrian Development Agency
• Monica Foerster, Chair, IFAC SMP Committee
• Mats Olsson, Deputy Chair, IFAC SMP Committee
• Hilde Blomme, Deputy Chief Executive, Accountancy Europe
• Carl Peterson, Vice President, Small Firm Interests – Public Accounting, Association of International Certified Professional Accountants
• John Hodge, Senior Financial Management Specialist, CFRR, The World Bank
• Ken Siong, Technical Director, International Ethics Standards Board for Accountants
• Paul Thompson, Director, European Federation of Accountants and Auditors for SMEs
• Ardiana Bunjaku, Executive Director, Society of Certified Accountants and Auditors of Kosovo
• Robyn Erskine, Member, IFAC SMP Committee
• Kalina Sukarova, Senior Financial Management Specialist, CFRR, The World Bank
• Beverley Bahlmann, Deputy Director, International Auditing and Assurance Standards Board
• Dawn McGeachy, Member, IFAC SMP Committee
• Hysen Cela, President, Institute of Authorized Chartered Auditors of Albania
• Manoj Fadnis, Member, IFAC SMP Committee
• Bonnie Ann Sirois, Senior Financial Management Specialist, CFRR, The World Bank
• Aliaksey Yeudachimovich, Belarus Association of Auditors
• George Williw, Member, IFAC SMP Committee
• Antoni Gomez, Member, IFAC SMP Committee
• Wassim Khrouf, Member, IFAC SMP Committee
• Alfred Borgonovo, Senior Financial Management Specialist, CFRR, The World Bank

The Forum agenda is available online; presentations are available below.

What does it take to establish a national professional accountancy organization (PAO)? How about one that is relevant, sustainable, and ready to adopt and implement international standards and best practices? Is there a set formula for success?

In this podcast, IPSASB Deputy Director Ross Smith and Principal Paul Mason discuss how materiality can be applied when preparing financial statements. The podcast summarizes the accounting requirements for materiality in International Public Sector Accounting Standards.

An accompanying Staff Questions and Answers document is also available.

The Staff of the International Ethics Standards Board for Accountants (IESBA) has released a Q&A publication to support the adoption and implementation of the revised long association provisions Changes to the Code Addressing Long Association of Personnel with an Audit or Assurance Client, which the IESBA approved in December 2016 under the extant structure and drafting conventions of the Code (“close-off document”).

The Q&A publication is designed to highlight, illustrate, or explain aspects of the revised partner rotation regime in the extant Code, and thereby assist in their proper application.

As part of Phase 2 of the Structure of the Code project, the close-off document is currently being restructured in accordance with the new structure and drafting conventions of the Code. The restructuring will not change the substance of the revised provisions. The restructured provisions are expected to be published as part of the restructured Code by the end of Q1 2018. The Q&A publication will be updated to align with the final restructured provisions and will be re-issued around the same time as the restructured Code.

e International Auditing and Assurance Standards Board (IAASB) Data Analytics Working Group is pleased to announce the members of the recently-established Data Analytics Project Advisory Panel.

This Advisory Panel was established to inform the IAASB’s work on data analytics by:

• advising the Working Group (and other IAASB task forces/working groups as necessary) on the developments in data analytics’ use in audit, thereby further informing the IAASB’s thinking and approach to its standard-setting activities;
• serving as a technical resource to the IAASB and Working Group and providing an external perspective on the use of data analytics in a financial statement audit;
• acting as a sounding board for the Working Group in Request for Input feedback considerations and when exploring the potential way forward, including implications and timing; and
• providing input to any guidance or materials the IAASB may develop.

In connection with the establishment of the Working Group and its technology focus, the IAASB released a Request for Input, Exploring the Growing Use of Technology in the Audit, with a Focus on Data Analytics, in September 2016. It provides insights into data analytics’ opportunities and challenges and outlines the Working Group’s insights to date.

Additional information and project updates are available on the IAASB’s project page.

Following on the fundamental reorientation of the IFAC Professional Accountants in Business Committee made to its meetings and communications in 2016, the committee has issued a report that shares the knowledge, ideas, and experience of the committee on developing a future-ready profession.

The report is designed to be accessible, with improved navigation, summaries that enable a fast read; and clearly identified future actions and recommendations.

The main themes in the report, and in the meeting it flows from, are:

• digital disruption and rapid cognitive business development;
• the continued evolution of the profiles of finance leadership and accountants in business;
• effective risk management;
• how integrated reporting can lead to better reporting outcomes; and
• how the new media landscape is changing the way we communicate.

The Committee, made up of an international group of thought leaders from IFAC member organizations, met in New York March 29-30 for its bi-annual meeting, chaired by Charles Tilley, Executive Chairman of the CGMA Research Foundation. Insights from the meeting will help raise awareness of emerging trends, challenges, and opportunities affecting the accountancy profession and accountants in business across the globe, and will help the global profession coordinate activities. 

The 2015-2016 Biennial Review: Sustaining the Momentum summarizes the International Public Sector Accounting Standards Board (IPSASB)’s achievements, challenges, and key developments in 2015 and 2016.

One of the major milestones during this period was the establishment of a new single-layer governance and advisory framework—the Public Interest Committee (PIC)* and Consultative Advisory Group (CAG)**—a landmark achievement for the IPSASB and its global stakeholders.

2015 and 2016 also saw IPSASB members sustain an ambitious stakeholder outreach program in support of one of the strands of the Board’s strategic objective—raising awareness of IPSAS and their benefits. The Public Sector Standard Setters Forum in particular elevated IPSASB’s outreach.

The Forum, jointly held in March 2016 by the IPSASB and the US Governmental Accounting Standards Board (GASB), was the first-ever global event for public sector standard setters and involved more than 70 participants from more than 30 countries and 22 organizations with standard-setting responsibilities, including ministries of finance with standard-setting responsibilities. The event created an environment to build a dialogue, exchange ideas, and discuss critical issues in standard setting.

This period also included substantial progress on the IPSASB’s work plan, including completion of eight new or replacement IPSAS and a number of limited scope projects.

Key continuing projects on which substantial progress was made include:

• Social benefits;
• Revenue and Non-Exchange Expenses;
• Heritage;
• Financial Instruments (both core standards and public sector specific); and
• Leases.

The Biennial Review provides detail on completed and ongoing projects.

In the Review’s introduction, IPSASB Chair Ian Carruthers highlights the importance of the IPSASB’s Strategy and Work Plan and the Conceptual Framework in shaping the IPSASB’s activities. The IPSASB’s Strategy for 2015 Forward: Leading through Change was the first full IPSASB strategy on which there was public consultation. The Conceptual Framework, published in October 2014, guides the IPSASB’s standard-setting approach.

The International Federation of Accountants (IFAC) facilitates the work of the IPSASB and includes IPSASB’s financial results within IFAC’s 2016 Financial Statements.

* The Public Interest Committee provides assurance that the IPSASB’s standard-setting activities are in the public interest.

** The Consultative Advisory Group is an integral part of the IPSASB's formal consultation process and provides advice on all aspects of IPSASB’s standard-setting activities, including IPSASB’s strategy, work plan, and projects, with a particular focus on implementation.

The results of new study, G20 Public Trust in Tax, which surveyed citizens across the G20 on issues of trust and international taxation, was released this week at a roundtable discussion that included the UK’s top tax administrator, HMRC Permanent Secretary Edward Troup, tax leaders from global firms, members of the accountancy profession, and the press.

The study, prepared by the Association of Chartered Certified Accountants, Chartered Accountants Australia and New Zealand, and IFAC, draws on the views of more than 7,600 people across G20 countries.

Some of the key findings include:

• people want governments to put tax cooperation ahead of tax competition—73% of people in G20 countries think it is important or very important for governments to cooperate with each other on tax policy to create a more coherent international tax system;
• 57% of people in G20 countries trust or highly trust professional tax accountants as a source of information about the tax system; and
• in contrast, people in G20 countries have become deeply distrustful of politicians when it comes to information about the tax system, with 67% either distrusting or highly distrusting politicians.