1. New Consultation Paper Issued by IPSASB

 

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

 

 

The IFAC International Gold Service Award recognizes outstanding individual contributions to the accountancy profession, including protecting the public interest; exemplifying professional conduct and ethics; exceptional quality of work; and/or contributions to a particular project or initiative.  Nominations should be submitted to the chief executive officer of IFAC by March 15, 2012; award(s) will be presented at the annual IFAC Council Meeting in November 2012.  See the press release and nomination form for additional information.

 

 

For the first time, all vacancies on the public interest activity standard-setting boards are open for nominations by the public.  This change is due to IFAC’s determination to ensure a transparent approach to filling available positions, while also achieving gender, regional, and professional balance, and is in response to the Monitoring Group’s 2010 effectiveness review of the IFAC Reforms.  Nominations should be submitted by March 15, 2012 electronically via IFAC’s nominations database.  For more information see the Call for Nominations and Developing a Nominations Strategy.

 

 

The International Auditing and Assurance Standards Board (IAASB) released a Feedback Statement on the responses to its January 2011 Discussion Paper, The Evolving Nature of Financial Reporting: Disclosure and Its Audit Implications. The Discussion Paper solicited views and perspectives of different stakeholder groups across the world on the challenges arising as financial reporting continues to evolve to meet the changing needs of users. The Feedback Statement presents a summary of the range of views on some of the more significant challenges faced by participants across the entire financial reporting supply chain, including the impact of trends in financial reporting; applying materiality to disclosures; evaluating misstatements generated by disclosures; the availability of audit evidence to support disclosures; and work effort. The Feedback Statement provides an overview of the key messages heard and provides thoughts and recommendations on what can be done to address them.

 

 

In light of responses received to the May 2011 Consultation Paper, Enhancing the Value of Auditor Reporting: Exploring Options for Change, the International Auditing and Assurance Standards Board (IAASB) approved at its December meeting a proposal to commence, on a priority basis, a project on auditor reporting. The aims of this project are to: enhance the communicative value and relevance of auditor reporting to users of audited financial statements; and explore ways in which auditor reporting could accommodate evolving national financial reporting regimes and facilitate enhanced approaches in corporate financial reporting, while at the same time ensuring that common and essential content is communicated. The project will include revision of International Standards on Auditing (ISA) 700, Forming an Opinion and Reporting on Financial Statements, and, as appropriate, the revision of, or conforming amendments to, related communication and reporting requirements relevant to audits (for example, ISA 260, Communication with Those Charged with Governance). The IAASB has signaled that this project will be its highest priority, and intends to devote a substantial amount of board time to it in 2012 and beyond. Interested parties can monitor developments throughout this project by visiting the project history.

 

 

IFAC has released the second edition of its Companion Manual on how member bodies and other professional accountancy organizations can make the best use of the Guide to Practice Management for Small- and Medium-Sized Practices, 2e (PM Guide), including adapting, translating, or incorporating the PM Guide into CPD courses and/or training programs. 

 

The PM Guide provides guidance to small- and medium-sized practices (SMPs) on how to better manage their practice and ultimately operate in a safe, profitable, and professional manner. Consisting of eight standalone modules, the Guide features checklists and forms, lists of further readings, and case studies to illustrate the concepts, which range from strategic planning and managing staff to client relationship management and succession planning. The SMP Committee welcomes feedback on the Guide via its Discussion Board. To comment, you must first register and/or log in if you already have an account on the IFAC website.  

 

 

IFAC recently released the results of its fourth quarter SMP Quick Poll conducted November 17 to December 19, 2011. The poll found that burden of regulation and economic uncertainty remain top challenges for practitioners’ small business clients. Similarly, for accountants within small practices, keeping up with new standards and regulations ranked as the top challenge, followed by attracting and retaining clients. As a whole, pessimism increased since the August-September 2011 poll was conducted, which may be due in part to the high European response rate in the fourth quarter and deepening debt crisis across the region. When asked about the main driver of growth for their practice, revenue from new clients (38%) came out on top with nearly twice the number of responses as revenue from existing clients (20%). See these and additional results broken down by size of practice and region in the IFAC SMP Quick Poll: 2011 Round-Up. IFAC wishes to thank those member bodies and regional organizations that translated and/or helped promote the poll to their members.

 

 

Upcoming Events   

 

 
1. IFAC Sovereign Debt Seminar: The Sovereign Debt Crisis, a Matter of Urgency―from Lessons to Reform  

 

Space remains for IFAC’s upcoming conference on the sovereign debt crisis, March 19-20, 2012 in Vienna. Aimed at key decision makers, politicians, public finance management leaders, and journalists who work in finance, accounting, auditing, and budgeting, the Seminar will feature experts from across the globe addressing topics including standard setting, government reporting reform, long-term sustainability of governments, and the role of the finance professional as leader and catalyst for change. Attendees will have the opportunity to network with our venerable speakers and guests. As the impact of the sovereign debt crisis continues to create turmoil in the global economy, our seminar will cover the crisis’s many causes and the reform needed now. 

 

Visit our website for more information and to register today.   

 

 

IFAC and the Institute of Certified Public Accountants of Singapore (ICPAS) will co-host the next annual IFAC Small and Medium Practice (SMP) Forum on March 19, 2012. Leading figures and representatives from government agencies, donor agencies, standard setters, and other organizations will discuss collaborative solutions to unique challenges facing SMPs and their small- and medium-sized entity (SME) clients. The event will feature a keynote address by IFAC Deputy President Warren Allen; speakers from the World Bank and SME organizations, and plenary sessions on shaping regulations/standards and embracing the opportunities and challenges of tomorrow, as well as break-out sessions and networking opportunities IFAC member bodies are invited to send up to 10 delegates as space is limited. Please register delegates soon. The deadline for registration is February 29, 2012. For more information, see the brochure, contact SMPForum@ifac.org, or view the agenda, speeches, and videos from the 2011 Forum.

 

Open Consultations and Exposure Drafts
 

 

   

 

The IFAC Board has released proposed revisions to the Statements of Membership Obligations (SMOs) for comment. The SMOs form the basis of the IFAC Member Body Compliance Program and serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members. The SMOs were redrafted to clarify what is expected of IFAC member bodies when they have varying degrees of responsibility for an SMO area, and to bring the SMOs in line with IFAC’s current strategic focus on adoption and implementation of international standards. Comment Deadline: March 5, 2012

 

 

The International Ethics Standards Board for Accountants (IESBA) has released Proposed Changes to the Code of Ethics for Professional Accountants Addressing Conflicts of Interest, which is intended to provide additional guidance to professional accountants in business and in public practice concerning conflicts of interest. The proposed changes are also intended to make revisions to provide more comprehensive guidance in identifying, evaluating, and managing conflicts of interest. In the IESBA’s view, the approach to be taken by a professional accountant in public practice and a professional accountant in business should be broadly similar. The proposal recognizes, however, that conflicts of interest will typically arise in different circumstances for accountants in public practice, particularly because a conflict of interest may arise from professional services provided by other members of the accountant's firm. Comment Deadline: March 31, 2012

 

 

The International Public Sector Accounting Standards Board (IPSASB) has issued the following:

? 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. In addition, it 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

? Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Presentation in General Purpose Financial Reports explores concepts applicable to the presentation of information in the general purpose financial reports of public sector entities. The Consultation Paper describes what is meant by presentation of information, and explains that it is not limited to the financial statements and that presentation covers both display and disclosure. It reviews an approach to presentation of information that involves: presentation objectives based on user needs; application of the qualitative characteristics to presentation decisions; and three presentation concepts. IPSASB also released an At a Glance summary of the material in the Consultation Paper. Comment Deadline: May 31, 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 professional accountants in business and their organizations create a cycle of continuous improvement for their internal control systems. Comment Deadline: February 29, 2012