Exposure Drafts and Consultation Paper Issued by IESBA, IPSASB, and PAIB

 

Please see the Open Consultations and Exposure Drafts section for more details.

 

IFAC Calls for Financial Management Reform by Governments 

 

IFAC recently called on the governments of the world to reform substandard financial management practices. Although IFAC applauds the European focus on resolving the current financial crises, it also issued a warning regarding the underlying causes and the need to address these causes. IFAC also recommends that work be conducted or commissioned by the Financial Stability Board to consider the nature of institutional changes that are needed in public sector financial management to facilitate greater transparency and accountability, as well as protect the public and investors in government bonds. For more information, see the press release.

 

SMP Committee Issues Updated Audit Implementation Guide

 

IFAC’s Small and Medium Practices (SMP) Committee recently released the third edition of its Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (ISA Guide). Intended to help practitioners understand and efficiently apply the clarified International Standards on Auditing (ISAs) to audits of small- and medium-sized entities (SMEs), the updated guide features a number of refinements to the technical content and presentation. The comprehensive implementation guide offers a practical “how-to” approach for conducting risk-based audits of SMEs. Volume 1 covers the basic concepts of a risk-based audit in conformance with the ISAs. Volume 2 contains practical guidance on performing SME audits, including two illustrative case studies—one of an SME audit and one of a micro-entity audit. 

 

Predictive Business Analytics Guidance Released by PAIB Committee

 

The Professional Accountants in Business (PAIB) Committee has released the latest International Good Practice Guidance, Predictive Business Analytics: Improving Business Performance with Forward-Looking Measures, which will help PAIBs guide their organizations to select appropriate actions and make decisions to improve performance and achieve sustainable success. The guidance is designed to help PAIBs use predictive analytics to identify new opportunities for growth and improvement in their organizations, and highlight areas that need corrective actions or adaptions to strategy. 

 

News From the IFAC Council Meeting

 

The 34th Ordinary IFAC Council Meeting was recently held in Berlin, Germany, and the following key actions were taken by the Council:

? The Institute of Financial Accountants (UK) was admitted to IFAC as a full member, and four organizations were admitted as associates: Chamber of Professional Accountants of the Republic of Kazakhstan (Kazakhstan), Institute of Certified Accountants of Montenegro (Montenegro), Instituto Salvadoreño de Contadores Públicos (El Salvador), and Ordre des Experts-Comptables et Comptables Agréés du Bénin (Benin). For more information, see the press release.

? The Council appointed five new members to the IFAC Board: Ms. Rachel Grimes, Mr. Ahmadi Hadibroto, Mr. Ganapathy Ramaswamy, Mr. Makoto Shinohara, and Mr. Masum Turker. Mr. Steven Vieweg was also re-elected for a second term of service.

? The annual Gold Service Awards were also presented to Sir David Tweedie and Professor Stephen Zeff for their outstanding contributions to the accountancy profession.

? Notice of the Call for Nominations to IFAC Boards and Committees for 2013 was issued. For the first time, all vacancies on the public interest activity standard-setting boards are open for nominations by the public.

? IFAC also hosted a seminar for members of Council, Accounting for Crisis: Public and Private Sector Perspectives. 

 

IFAC and IASB Sign Cooperation MOU

 

IFAC and the International Accounting Standards Board (IASB) recently signed a Memorandum of Understanding (MOU) designed to strengthen cooperation in developing private and public sector accounting standards. The MOU reflects the IASB’s and IFAC’s shared conviction that the transparency provided by high-quality financial reporting standards contributes significantly to the effective functioning of capital markets and sound economic growth. The agreement represents a further commitment to strengthen the cooperation between the two boards, with a view to ensuring greater consistency in their respective standard-setting activities. For more information, see the press release.

 

SMP Quick Poll Now Open; Available in Seven Languages

 

The fourth and final IFAC SMP Quick Poll of 2011 is now open. The poll, which only takes a few minutes to complete, is conducted by IFAC to take a snapshot of the key issues confronting small- and medium-sized practices (SMPs) and their small- and medium-sized (SME) clients. This edition includes some forward-looking questions for 2012, as well as some questions from earlier polls to gather trending data, which we will analyze in a year-end composite report to be released in 2012. Thank you to the member bodies who helped translate the poll into six languages: Chinese, French, Italian, Portuguese, Romanian, and Spanish. Polling will close on December 19, 2011. The results from previous editions of the poll can be found on the IFAC website under SMP Publications & Resources. 

 

MOU Signed by IFAC and International Donor Community

 

IFAC recently signed MOSIAC: Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration with the international development and donor community. The Memorandum of Understanding (MOU) will create a basis to improve collaboration and cooperation between IFAC, development organizations, and donors. It is designed to lead to an increase in the capacity of professional accountancy organizations (PAOs) and improve the quality of financial management systems in emerging and developing economies. This new agreement will significantly contribute to the recently established New Global Partnership for Effective Development Cooperation. For more information, please see the press release.

 

IFAC, IAASB, IASB Meet on Standards with CIS and Baltic States 

 

IFAC, the International Auditing and Assurance Standards Board (IAASB), and the International Accounting Standards Board (IASB) recently met with over 60 representatives from 12 Commonwealth of Independent States (CIS) and Baltic countries to discuss adoption and implementation of International Standards on Auditing and International Financial Reporting Standards. For more information, please see the press release.

 
 

  

 

 

Japheth Katto, IFAC Board member, represented IFAC at the first African Congress of Accountants, Accountancy and Infrastructure in Africa, in Nairobi, Kenya, hosted by the Institute of Certified Public Accountants of Kenya. He spoke on the implications of globalization on the accountancy profession in Africa. Professor Arnold Schilder, chairman of the International Auditing and Assurance Standards Board (IAASB), also spoke; he gave an overview of delivery options for assurance services in developing nations. In addition, a number of representatives of the IFAC committees and the independent standard-setting boards attended the Congress, which aims to encourage debate and discussion on the role of the accountancy profession and professional accountants in sustainable development, of which infrastructure is a key component.

 

 

The next IFAC Small and Medium Practices (SMP) Forum will be held on March 19, 2012 in Singapore. At this annual event for SMPs, delegates from around the world will listen, learn, debate, and collaborate on the unique opportunities and challenges facing SMPs and their small- and medium-sized entity (SME) clients. Hosted by IFAC and the Institute of Certified Public Accountants of Singapore, the day-long event will feature a keynote address by IFAC Deputy President Warren Allen and plenary sessions on shaping regulations/standards and embracing the opportunities and challenges of tomorrow. During break-out sessions in the afternoon, delegates will be invited to provide input to the SMP Committee’s Work Plan, while sharing best practices and ideas on selected topics. Letters of invitation will be sent to all member bodies in December. For more information, please see details on last year’s event at www.ifac.org/2011SMPForum.

 

 

IFAC will be holding a global seminar in March 2012 regarding the ongoing sovereign debt crisis, designed for key decision makers, politicians, public finance management leaders, and journalists who work in finance, accounting, auditing, and budgeting. The Sovereign Debt Crisis, a Matter of Urgency—from Lessons to Reform will feature experts from across the globe addressing top¬ics including standard setting, government reporting reform, long-term sustainability of governments, and the role of the finance professional as leader and catalyst for change. More information is available on the IFAC website.

 

 

 

 

 

The International Ethics Standards Board for Accountants (IESBA) has released Proposed Changes to the Code of Ethics for Professional Accountants Related to the Provisions Addressing a Breach of a Requirement of the Code, which provides guidance for professional accountants on actions to be taken for any breach of the Code of Ethics for Professional Accountants. The Exposure Draft also includes a robust framework for addressing a breach of a requirement, which will increase transparency. Comment Deadline: January 23, 2012

 

 

The International Public Sector Accounting Standards Board (IPSASB) has issued the following Exposure Draft and Consultation Paper:

? Exposure Draft 46, Recommended Practice Guidelines, Reporting on the Long-term Sustainability of a Public Sector Entity’s Finances builds on a consultation paper issued in late 2009 and provides good practice guidelines on reporting on the long-term fiscal sustainability of a public sector entity. It also emphasizes that entities may be able to draw on projections that are already being made by other bodies, which will ensure a cost-effective approach. It also provides users with information on the impact of decisions made by the reporting date under current policy. IPSASB has also released an At a Glance summary of the material in the Exposure Draft. Comment Deadline: February 29, 2012

? Reporting Service Performance Information discusses the IPSASB view that service performance information is necessary to meet the objectives of financial reporting, which is to provide information that is useful to users of General Purpose Financial Reports for accountability and decision making. The project also aims to present a principles-based approach to developing a consistent framework for public sector entities. IPSASB also released an At a Glance summary for this Consultation Paper. Comment Deadline: April 15, 2012

 

 

The Professional Accountants in Business (PAIB) Committee has released Evaluating and Improving Internal Control in Organizations for public comment, the latest proposed International Good Practice Guidance. This proposed publication seeks to establish a benchmark for good practice in maintaining effective internal control in response to risk, as well as help PAIBs and their organizations create a cycle of continuous improvement for their internal control systems. Comment Deadline: February 29, 2012