News from Member Bodies, Affiliates and Regional Accountancy Organisations
1. New Research Website Launched by CMA Canada
Certified Management Accountants of Canada (CMA Canada) has launched a new website dedicated to management accounting research and designed for members of CMA Canada, other professional accountants in management, and accounting students. The website,
www.managementaccounting.org, includes access to publications and resources such as
Management Accounting Practices, Management Accounting Guidelines, papers, case studies, and webinars.
2. OECT and PAFA Hold Governance Conference
The Ordre des Experts Comptables de Tunisie (OECT) and the Pan-African Federation of Accountants (PAFA) recently co-hosted La gouvernance et la transparence dans le secteur public, a governance and transparency in the public sector conference, in Tunis, Tunisia, which included a wide-variety of stakeholders from Africa and other regions. Speaker and presentation topics included integrated reporting, International Standards on Auditing, and the development of the accountancy profession in Africa. Speakers included the presidents of OECT and PAFA, Nabil Abdellatif and Major General Sebastian Owuama, as well as the Tunisian Minister of Finance and IFAC representatives. The conference coincided with the PAFA General Assembly and meetings of the Arab Federation of Accountants and Auditors and the IFAC Professional Accountancy Organization Development Committee.
3. ICAI Proposes Changes to Company Compliance Standards
The Institute of Chartered Accountants of India (ICAI) has approached the Securities Exchange Board of India with a proposal to change company compliance norms. Among the changes the Institute is proposing are: an extended timeline for filing annual audited financial statements (currently 60 days), giving companies more time to release financial statements after a board meeting (currently 15 minutes), and allowing companies to present financial statements using Indian Accounting Standards, a combination of International Financial Reporting Standards (IFRSs) and India’s accounting standards. Companies in India are currently able to use IFRS or Indian GAAP.
4. Liberian Government to Work with LICPA
The government of Liberia recently pledged to work with the Liberian Institute of Certified Public Accountants (LICPA) to enhance the accountancy profession in Liberia. Liberian President Ellen Johnson Sirleaf said she recognizes the efforts of LICPA to build a vibrant organization, which will help develop and strengthen an efficient and transparent public accounting system. The statement from President Sirleaf was delivered during the graduation ceremony of accounting technicians, held during the annual meeting of the Association of Accountancy Bodies in West Africa.
5. ICAEW Council Votes to Create International Constituencies for Council Representation
The Council of the Institute of Chartered Accountants in England and Wales (ICAEW) recently voted to establish international constituencies for the direct election of the Council. These constituencies will be set up in regions and countries where there are at least 2,000 ICAEW members, on the basis of one council member per 2,000 members. Anticipated constituencies will be set up with one council member each in mainland Europe, Hong Kong, North America and the Caribbean, and Oceania, with possible future constituencies in Africa, China, the Middle East, and South East Asia.
6. President of CICPA Emphasizes Communication, Cooperation in Meeting with AICPA
The Deputy Minister of Finance for China and President of the Chinese Institute of Certified Public Accountants (CICPA), Li Yong, recently emphasized the importance of communication and cooperation on accountancy between China and the US during a meeting with representatives from the American Institute of Certified Public Accountants (AICPA). Mr. Li outlined some of the Chinese priorities regarding accountancy, as well as the official view of China’s Ministry of Finance that the development and improvement of the public accounting profession in China supports a sound financial market and healthy economic development. Mr. Li also made suggestions for future cooperation.
7. CIPFA: What Are the Key Challenges to a Top Performing Finance Function?
Emerging Stronger: Shaping the Finance Function to Meet New and Future Challenges, a new discussion document from the Chartered Institute of Public Finance and Accountancy (CIPFA), states that top performing organizations have top performing finance functions, but recognizes that few organizations in the public or private sector are able to achieve this. The document aims to generate discussion among finance leaders on the contribution their finance functions make to delivering the organizations’ objectives efficiently and effectively. It also asks these leaders to identify the key challenges in developing a finance function that is outward-looking and “fit for the future.”
8. FSR-Danske Revisorer Submits Audit Change Proposals
In response to the European Commission’s proposals for audit change, FSR-Danske Revisorer (Danish Auditors) has issued a list of initiatives that will improve audit quality without additional expense. The proposals would require: additional post-qualifying training as a prerequisite for licensing as an auditor at a bank or other financial institution; all auditors are graduates of an appropriate course of study; and the use of international standards of audit, ethics, and quality control throughout the European Union.
9. Joint Initiatives Launched Among Professional Accountancy Organizations
•
The American Institute of Certified Public Accountants and the Institute of Chartered Accountants of Scotland recently conducted an international panel discussion on the future of accounting standards.
Shaping the Future: Lessons from Accounting Standards Leaders, held in New York, discussed strategic matters relating to financial reporting, including political pressure, integrated reporting, reporting overload, and the possible adoption of International Financial Reporting Standards in the US.
• The Canadian Institute of Chartered Accountants and the Institute of Chartered Accountants of Pakistan have signed a reciprocal membership arrangement that recognizes the “substantial equivalency” in the education of Chartered Accountants and consequently reduces the eligibility requirements for members of one body to join the other.
•
The
First Pak-Saudi Accountancy Seminar was recently held in Riyadh, Saudi Arabia, by the Institute of Chartered Accountants of Pakistan with the support of the Saudi Organization for Certified Public Accountants (SOCPA) and the Embassy of Pakistan. Speakers included the Ambassador of Pakistan to Saudi Arabia, the Chief Economist at the National Commercial Bank, and the Secretary General of SOCPA, Dr. Ahmad Almeghames.
Sources:
Institute of Chartered Accountants of Pakistan and
Saudi Organization of Certified Public Accountants
News from Goverment, Regulatory Bodies and Other International Organisations.
1. New Report from IIA Reveals Evolution of Auditing Role
According to
Pulse of the Profession, the semi-annual report from the Institute of Internal Auditors (IIA), many audit executives are investigating options to enhance organizational value, which is opening the door for significant realignment. The report shows respondents’ internal audit plans reflect a “rebalancing of coverage among operational, financial, and compliance to more clearly align with the risks related to these areas.” This is in contrast with recent trends where audit plans more frequently focused on financial risks and control. The report also addressed the top skills organizations are looking for when hiring audit staff: analytical and critical thinking, effective communication, data mining and analytics, general IT knowledge, and business acumen.
2. UK Public Sector Under Scrutiny in New Report from Deloitte
Deloitte and Reform, an independent think tank, have released a new report on the public sector in the UK.
The State of the State 2012 provides a qualitative and quantitative assessment of the UK government’s fiscal positions, assets, and capabilities with the goal of prompting an objective debate on the operation of the public sector.
3. UNCTAD World Investment Forum Addresses Accounting and Development
The United Nations Conference on Trade and Development (UNCTAD) World Investment Forum 2012, High-Level Meeting on Accounting and Development, was recently held in Doha, Qatar. The meeting is designed to facilitate dialogue and action on emerging investment-related challenges; this year’s event focused on changing patterns of foreign investment and addressed developing partnerships and policy options for promoting sustainable investment. Highlights from the meeting and statements and addresses given by participants, including
Warren Allen, IFAC deputy president, are available on the
UNCTAD World Investment Forum website.
4. CAQ: Investors Demanding More Communication
According to a newly released summary of a workshop held by the US Center for Audit Quality (CAQ), investors are making it clear that they believe financial statements are too compliance-focused instead of effectively communicating a company’s financial results.
Summary of Workshop on the Evolving Role of the Auditor also includes comments from workshop participants (investors, buy-side analysts, audit committee members, preparers, and auditors) on the evolving role of the public company auditor, including involvement with information outside of the financial statements.
5. AAOIFI to Conduct a Review of Islamic Finance Guidelines
The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has announced plans for a review of its guidelines, which could include significant changes to how the sector conducts business. According to the financial lobby group
TheCityUK, Islamic financial assets were more than $1.3 trillion in 2011 and are now held in markets throughout the world beyond the Middle East and Malaysia. Among other guidelines, AAOIFI will be looking at the operations of Shariah boards, the groups of Islamic scholars who rule on whether financial institutions’ activities and products are religiously acceptable.
Recent Developments Related to the Financial Crisis and Economic Recovery
1. IMF New Drive for Funds Results in $320 Billion
The International Monetary Fund (IMF) has announced that it has raised $320 billion in its efforts to increase its resources to address the Eurozone debt crisis, including new funds or pledges from Poland, Switzerland, and Japan, the first non-European nation to make a commitment. The IMF is seeking to establish a $400 billion fund.