The Indian Minister of State for Corporate Affairs recently called for “public friendly accounting," speaking at the Institute of Cost Accountants of India’s National Cost Convention 2012, Sustainability Framework, Integrated Reporting, Imperatives for Cost Management Accountants. Minister Shri R.P.N. Singh appealed to members of the accountancy profession to help make the business reporting process easily understandable for “the common man.” Minister Singh also urged the profession to continue striving for the “utmost integrity” and a high level of transparency. More than 1,000 national and international experts on issues relevant to the accountancy profession attended and participated in sessions on topics such as corporate governance, sustainability, responsible investment, and integrated reporting. Chair of the IFAC Professional Accountants in Business Committee, Roger Tabor, gave a presentation at the convention and committee members attended the convention. 

Source: Institute of Cost Accountants of India

2. SAIPA to Host National Accounting Conference and Anniversary Celebration
 

The South African Institute of Professional Accountants (SAIPA) is holding its National Conference, Accounting as a Catalyst for Change, in conjunction with its 30th Anniversary Celebration, July 11-13, 2012. SAIPA has extended an invitation to all IFAC members and stakeholders to attend the conference and anniversary. Featured sessions at the conference include integrated reporting and small- and medium-sized entities; cross-border business opportunities; the role of small- and medium-sized practices in the economy; and how accountants can assist their organizations in compliance, governance, and the prevention of corruption. The conference will feature experts from professional accountancy, global finance, and accountancy education organizations. For more information on registration, visit the SAIPA website.

Source: South African Institute of Professional Accountants
 

3. CIMA Releases New Ethics Tool
 

The Chartered Institute of Management Accountants (CIMA) has released an animated ethics tool designed to help educate members and students on their obligations to follow CIMA’s Code of Ethics, which is based on the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants. The animation highlights the importance of acting quickly and appropriate actions to take when facing a dilemma.

Source: Chartered Institute of Management Accountants 

 

 

According to a new survey from the Canadian Institute of Chartered Accountants (CICA) and the Royal Bank of Canada (RBC) for the CICA/RBC Business Monitor covering the first quarter of 2012, Canadian firms are becoming more confident about the economy and the outlook for profits and hiring. Approximately 32% of respondents expressed confidence that the economy would improve over the next 12 months, which is up from only 20% three months ago. Additionally, 65% of respondents believe their companies’ profits will increase and 44% believe their companies will be hiring. However, those expressing neutrality for economic improvement—uncertainty regarding the economy doing better or worse—remained the same at 58%.

Sources: Canadian Institute of Chartered Accountants and Winnipeg Free Press
 

 

In an effort to enhance core technical activities at the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka), the World Bank’s Institutional Development Fund has extended a grant of $500,000 to the Institute. The grant will fund the implementation of an audit quality assurance program; an initiative to assist and educate small- and medium-sized practices; a program to increase awareness and adoption of International Financial Reporting Standards; and efforts to increase adoption of Sri Lanka Public Sector Accounting Standards.

Source: Institute of Chartered Accountants of Sri Lanka
 

 

The Institute of Chartered Accountants of Nigeria (ICAN) has called for educational institutions in Nigeria to include International Standards on Auditing (ISAs), International Public Sector Accounting Standards (IPSAS), and International Financial Reporting Standards (IFRS) in their curriculum. Speaking at the presentation of accreditation certificates to new graduates, Professor Francis Ojaide, president of ICAN, said, “The adoption of IFRS and IPSAS is now a global trend and as part of globalization…Nigeria has joined the bandwagon.” He went on to say educational institutions have a “vital role to play in disseminating the knowledge to their students,” and that to lower standards would have a negative impact on the accountancy profession in Nigeria and globally. Nigeria adopted IFRS for publically listed companies as of January 1, 2012.

Source: Vanguard

 

As a follow-up to the four roundtable discussions on topics of importance for small- and medium-sized entities (SMEs) held over the last year, the Fédération des Experts Comptables Européens (FEE) has published Access to Finance for SMEs—In Search of Innovative Solutions. The discussions included regulators, accountants, financial experts, and SMEs and covered a variety of topics, including challenges and solutions to growth for SMEs and how to finance growth.

Source: Fédération des Experts Comptables Européens
 

8. Joint Initiatives Launched Among Professional Accountancy Organizations
 

• The Arab Society of Certified Accountants and the Jordan Association of Certified Public Accountants have started discussions on future cooperation and initiatives between the two organizations. The organizations have worked together in the past but are exploring new channels of cooperation.

Sources: Arab Society of Certified Accountants and Jordan Association of Certified Public Accountants

• The Boards of the Institute of Chartered Accountants in Australia and the New Zealand Institute of Chartered Accountants met recently to discuss consolidating existing collaborations and initiatives, including shared products and services; moving common activities to a shared services model; and the merits of merging the two organizations. The Boards agreed to further explore the possibility of merging. Next steps include: developing options for governance arrangements; legal and tax considerations; analysis of cost and synergies; developing the member value proposition; and other member considerations.

Sources: Institute of Chartered Accountants of Australia and New Zealand Institute of Chartered Accountants

 

 

 

 

The World Economic Forum has released its annual Global Competitiveness Report 2010-2011, once again ranking South Africa as the top economy in terms of the strength of its auditing and reporting standards for company financial performance. The report credits South Africa’s decision to adopt International Standards on Auditing as early as 2005 in helping South Africa to consistently move up in ranking over the last few years, culminating in the top position for the past two years. The report examines factors that enable national economies to achieve sustained economic growth and long-term prosperity.

Source: Sowetan 

 

The US Financial Accounting Foundation (FAF) has indicated it will vote on private company financial reporting in the US as soon as its meeting on May 22-23, 2012. The issue has been under discussion since the recommendations of the Blue Ribbon Panel on Standard Setting for Private Companies were released, urging creation of an independent, authoritative standard-setting board to modify, where necessary, US GAAP (see March 2011 Global Digest for more information). FAF has proposed creating a Private Company Standards Improvement Council to recommend deviations from US GAAP—a proposal that received more than 7,000 comment letters. 

Source:Journal of Accountancy

 

The Workshop on Climate Change was recently held in Geneva, Switzerland, a collaboration between the United Nations Conference on Trade and Development (UNCTAD), the Organisation for Economic Co-operation and Development, the Climate Disclosures Standards Board, and the Global Reporting Initiative. The workshop focused on identifying the problems with current climate change disclosure systems; understanding what leads to the demand for and supply of climate change-related information; and the benefits of consistency in disclosure and how to best achieve it. Michael Nugent, IFAC technical manager and technical director for the International Integrated Reporting Council, gave a presentation detailing the proposed International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements, and some of the findings from Investor Demand for Environmental, Social, and Governance Disclosures: Implications for Professional Accountants in Business. Additional presentations and workshop materials are available on the documents tab of the UNCTAD website.

Source: United Nations Conference on Trade and Development
 

 

The Public Interest Oversight Board (PIOB) and the Monitoring Group (MG) have launched the process of public consultation for the PIOB strategy and work plan and MG governance review; responses are requested by June 28, 2012 and should be emailed to PIOB-MonitoringGroup@ipiob.org. Submitted responses to the public consultation will be monitored by both the PIOB and the International Organization of Securities Commissions secretariats. IFAC will be responding to the MG paper in the coming weeks and encourages all stakeholders to do the same. The PIOB oversees the public interest activities of IFAC; the MG, consisting of seven regulatory and international financial public interest institutions, creates a link between standard-setting boards and those regulatory authorities responsible for adoption and/or supervision of the standards.

Source: Public Interest Oversight Board

 

 

 

 

The Organisation for Economic Co-operation and Development (OECD) has issued a warning that the public debt crisis in the Eurozone is not over and that “ambitious” economic reforms are needed. While financial markets in the Eurozone have been calmer in 2012, the OECD says that banks remain weak, debt levels are still rising, and fiscal targets are not assured. These remarks by Angel Gurría, OECD Secretary-General, were made at the launch of the OECD Economic Surveys of the Euro Area and the European Union, and are parallel to the outcomes of the IFAC Sovereign Debt Seminar.

Source: Organisation for Economic Co-operation and Development
 

Deloitte has released Global Economic Outlook 1st Quarter 2012: Navigating Uncertainty, which looks at global trends and events that are affecting finances and the marketplace. The report takes a special look at public sector debt and outlines options available to policymakers. This edition of the report also reviews the economic outlook for the Eurozone, the US, China, Japan, the UK, India, Russia, Brazil, and Canada.

Source: Deloitte