The International Ethics Standards Board for Accountants (IESBA) is conducting a strategic review to develop a new strategy and work plan for the period 2014-2016. It is seeking the views of interested parties on key issues to address in the plan and their relative priorities. To contribute your views, take the survey at IESBA 2014-2016 Strategic Review Survey by March 15, 2013. Individual responses to the survey will not be made public.

IPSASB Publishes Chapters 1-4 of the Conceptual Framework

In January, the International Public Sector Accounting Standards Board (IPSASB) published the first four chapters of the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities (the Conceptual Framework), which underpins the development of International Public Sector Accounting Standards (IPSASs) and Recommended Practice Guidelines (RPGs). These chapters outline the role of the Conceptual Framework in the IPSAS and RPG development process, identify the primary users of general purpose financial reports (GPFRs) of public sector entities as service recipients and resource providers, and clarify that the objectives of financial reporting by public sector entities are to provide information useful to users for accountability and decision making purposes. They also identify the qualitative characteristics of, and constraints on, information included in GPFRs and the key characteristics of a public sector reporting entity.
 

The IPSASB is currently developing additional chapters of the Conceptual Framework, which will address the definition, recognition, and measurement of the “elements” or building blocks of financial statements, and presentation in GPFRs. They will be added to the Conceptual Framework when completed.

 

Business Reporting Processes Guidance Released by PAIB Committee
 

Principles for Effective Business Reporting Processes, new International Good Practice Guidance, has been released by the Professional Accountants in Business (PAIB) Committee. The guidance helps professional accountants in business work with their organizations to enhance business reporting processes, and discusses the key issues of developing effective processes. At the heart of the new guidance are 11 key principles for evaluating and improving business reporting processes, which are complemented by practical guidance outlining the critical arrangements that need to be in place for effective business reporting. The guidance can also be used to prepare for enhanced forms of business reporting, such as integrated reporting, and is designed for organizations of all sizes, structures, and sectors, as all organizations need to produce high-quality reports. Additionally, an article discussing the topic is available for IFAC member and regional organizations. Email permissions@ifac.org for access to, and permission to use, the article.

The Small and Medium Practices (SMP) Committee recently released the results of its most recent SMP Quick Poll conducted November-December 2012. The poll was conducted in 17 languages and received 3,767 responses from all regions of the world. The poll included questions related to the challenges and issues facing SMPs and their small- and medium-sized entity (SME) clients, drivers and areas of practice growth, business outlook, and public perceptions. The results indicated that burden of regulation and economic pressures continue to challenge SMPs and their clients. The poll also showed that SMPs are concerned about the reputation of the profession, however, respondents generally ranked public perception of the profession in their country/jurisdiction as average to above average and expect this perception to improve by 2025. The poll report includes notable variations by region and size of practice, in addition to trend data based on previous polls where available. See the full report in the SMP Committee area of the IFAC site: www.ifac.org/SMP.

 

An Engagement Quality Control Review (EQCR) is an important component of an audit firm’s overall audit quality process. The staff of the Transnational Auditors Committee (the executive arm of the Forum of Firms) recently released an Information Paper that illustrates the more judgmental elements relating to an EQCR to help practitioners evaluate and enhance their own processes for conducting such reviews. See the paper, Engagement Quality Control Review: Practical Considerations on the Forum’s website: www.forumoffirms.org.