News from Member Bodies, Affiliates and Regional Accountancy Organisations
1. SAICA: Companies Act will Help SMEs
A new law in South Africa that may help lessen the burden on small- and medium-sized entities (SMEs) is being welcomed by the South African Institute of Chartered Accountants (SAICA). The Companies Act will exempt SMEs from some audit requirements using a points system that accounts for the number of employees, level of debt financing, annual turnover, and shareholders. Companies with a mid-range score will need to have an independent review by a registered auditor or Chartered Accountant. Companies with a low score will also need to have an independent review but it can be conducted by anyone qualified as an accounting officer. Large companies will still be required to have an independent audit.
2. ACCA Releases Inaugural Integrated Annual Report
The Association of Chartered Certified Accountants (ACCA) has issued its first
integrated annual report, which follows the initial approach set out by the International
Integrated Reporting Council (IIRC). The ACCA is participating in the IIRC’s Pilot Programme to establish and test an initial Integrated Reporting Framework. The integrated report aims to show how the ACCA has created value for its stakeholders and members within the commercial, social, and environmental contexts in which it operates. “It is important for us as a professional body to explain how we create value for our stakeholders—especially our members—and the place we occupy in society,” said Helen Brand, ACCA’s chief executive.
3. FSR – Danske Revisorer: More Young People Opting for Audit Training
According to new statistics from FSR – danske revisorer, the number of students admitted to audit training programs has increased by a third since 2011. The FSR Chief Executive Officer, Charlotte Jepsen, credits some of the increase with the improving perception of auditors as valued partners in business. Additionally, FSR has changed its education and training program to encourage interest by additional students, including shortening the qualification time and improving the pass rate. While maintaining high standards for students, FSR has put into place a new examination process that addresses these issues.
4. FACPCE Hosts Leadership Conference for Young Professionals
The Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE) recently held the Second National Leadership Conference of Young Professionals, Toward Leadership Excellence. The conference sought to strengthen the capacity of young leaders from around Argentina, develop leadership skills, train young people in management and decision making, and create a space for debate of problems related to performance to find solutions. The conference was attended by delegates from 21 provinces and members of the Youth Commission of FACPCE.
5. Internal Auditors Becoming More Involved in Analyzing Risk
In the latest issue of A+ magazine, the Hong Kong Institute of Certified Public Accountants explores the evolving role of internal auditors as many take on expanded roles analyzing and managing risk. In the article, internal audit experts discuss changing perceptions and what these shifts mean for the accountancy profession.
6. ICAN to Sponsor Whistle Blowers Act
According to a recent interview with Institute of Chartered Accountants of Nigeria (ICAN) President Adedoyin Idowu Owolabi, ICAN will sponsor a new whistle blowers act in the National Assembly in the coming months. The legislation will be designed to help fight corruption, which Mr. Owolabi considers a widespread problem in Nigeria, encourage reporting of corruption, and protect those who do. “These are the people we need to protect and if we protect them, many more Nigerians will come out to speak against it,” said Mr. Owolabi. In the interview, Mr. Owolabi also discusses future plans for ICAN and his concerns regarding insufficient numbers of professional accountants in Nigeria. An additional interview with Mr. Owolabi is available on the
Leadership website.
7. SAIPA Holds Conference and Anniversary: Catalyst for Change
The South African Institute of Professional Accountants (SAIPA) held its national conference,
Accounting as a Catalyst for Change, in conjunction with its 30th anniversary celebration in July 2012. The conference featured sessions on integrated reporting and small- and medium-sized entities (SMEs), as well as 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 included an address from Finance Minister Pravin Gordhan, who emphasized the importance of professional accountants and the role they play in the global economy. “Historically accountants had the role of providing information to shareholders‚ but their role has now extended to informing persons in labor‚ government‚ the banking sector‚ regulators, and general society‚” said Minister Gordhan.
During the conference, IFAC Executive Director, Governance and Operations, Alta Prinsloo, also gave a presentation,
Integrated Reporting for SMEs in Africa, which detailed the current status of integrated reporting globally and in Africa and how the issue is playing out for SMEs.
8. Recent Member Body Appointments and Elections
• Ms. Eithne O'Sulivan, President, Accounting Technicians Ireland
• Mr. Peter Johnson FCA, Vice President, Accounting Technicians Ireland
• Lic. Carmen María Vanegas López, President, Colegio de Contadores Públicos de Nicaragua
• CA. Madhu Bir Pande, President, Institute of Chartered Accountants of Nepal
• Mrs. Angela Peasah, President, The Institute of Chartered Accountants (Ghana)
• Prof. K. B. Omane-Antwi, Vice President, The Institute of Chartered Accountants (Ghana)
• CA. Mahesh Kumar Guragain, Vice President, Institute of Chartered Accountants of Nepal
• Lic. Pedro Matos, President, Instituto de Contadores Públicos Autorizados de la República Dominicana
• Lic. Ramón Perello, Vice President, Instituto de Contadores Públicos Autorizados de la República Dominicana
• CMA Rakesh Singh, President, Institute of Cost Accountants of India
• CMA Suresh Chandra Mohanty, Vice President, Institute of Cost Accountants of India
• Mr. Anthony Doublet, President, The Malta Institute of Accountants
• Ms. Maria Micallef, Vice President, The Malta Institute of Accountants
9. Joint Initiatives Launched Among Professional Accountancy Organizations
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The Chartered Institute of Public Finance and Accountancy and the Chartered Institute of Internal Auditors (IIA) have launched a public consultation on the first unified set of internal audit standards for the UK public sector—the UK Public Sector Internal Audit Standards (PSIAS). When released in their final form, the PSIAS will provide a consistent and coherent framework, coordinated update process, and a public sector voice in IIA’s standard setting. The PSIAS are based on the IIA’s International Professional Practices Framework and will likely take effect on April 1, 2013. The comment deadline is
September 14, 2012; the documents are available by emailing
psias.consultation@cipfa.org.uk.
CGMA also recently released its
Global Economic Forecast for the second quarter of 2012. Key findings indicate pessimism among executives regarding the global economy. CGMA also has a
webcast available online detailing the results of the findings.
• CPA Australia and the Institute of Chartered Accountants in Australia have released a new book on water accounting, Water Accounting: International Approaches to Policy and Decision-Making. The book examines the global issues facing how best to manage water resources, looking at water accounting as a social and economic issue.
News from Government, Regulatory Bodies and Other International Organisations
1. IIRC Releases Integrated Reporting Framework Outline
The International Integrated Reporting Council (IIRC) has released its Draft Outline of the Integrated Reporting Framework, which establishes—for the first time—the basic structure of the Framework, and keeps stakeholders informed on the status of development. The IIRC plans to launch a prototype of the Framework later in 2012, a Draft Framework in early- to mid-2013, and a “version 1.0” in late 2013.
2. Draft Regulation on GHG Reporting Released by UK Government
The UK government has issued a
draft regulation on required reporting of greenhouse gas emissions (GHG) by UK quoted companies, which will take effect in April 2013. This move follows a previous public consultation period in 2011 that saw the majority of respondents in favor of requiring reporting on GHG. The government plans to review the first two years of GHG submissions from quoted companies during 2015 and make a determination regarding possible extension of the requirement to all large companies in 2016. Comments are requested by October 17, 2012 and can be emailed to
ghgreporting@defra.gov.uk.
3. Video Exploring Audit Committee Role Released by CAQ
The US Center for Audit Quality (CAQ) has released an educational video discussing the role of the audit committee as an “important hub for the system of investor protection.” The video explains the specific responsibilities and duties of the committee, including hiring and overseeing the external auditor.
4. Accounting Professionals Sought for Global Volunteer Experiences
Accountants and finance professionals interested in global volunteer experiences are being sought by
Accounting for International Development (AfID). AfID places experienced accounting and financial professionals with non-profit organizations around the world to help develop and enhance local skills and potential. Many small organizations around the world often lack staff and volunteers with appropriate accountancy skills, which can result in poor financial management and organizations being forced to close their doors. AfID volunteers teach organizations how to do more with available resources and prepare local staff to manage the organization independently. In addition to individual volunteers, AfID is also looking for additional partner organizations; the Chartered Institute of Management Accountants and the Institute of Chartered Accountants in England and Wales are currently AfID partners.
5. Private Company Reporting Discussion Paper Released by FASB
6. Opinion: Nonprofits in India Should be Guided by Specific Accounting Considerations
Writing in The Hindu, Parul Soni, executive director and leader—Development Advisory Services, Ernst & Young, addresses conflicting accounting and reporting requirements for nonprofit organizations in India. Mr. Soni argues that nonprofits should be guided by key considerations in order to have transparent finances: adopting an appropriate basis of accounting, strengthening controls over financial accounting software, documenting accounting policies and procedures, adhering to accounting standards, segregating incompatible duties, and monitoring the budget.
7. Professional Accountant, Accounting Student Compete in 2012 Olympics
The accountancy profession was well represented at the 2012 Olympics in London with two Olympians with ties to the profession competing in events—Ed McKeever as a sprint kayaker for the UK and Gwen Jorgensen in the triathlon for the US. Mr. McKeever, a student with the Association of Chartered Certified Accountants, won the gold medal in his race, the 200 meter men’s kayak single. Ms. Jorgensen, a practicing CPA tax accountant with Ernst & Young, came in 38th in the Women’s Triathlon.
Recent Developments Related to the Finaical Crisis and Economic Recovery
1. UNEP-FI: Global Integrated Reporting Standard Recommended to Prevent Financial Crises
A global integrated reporting standard is one of the key recommendations in a new report from the International Institute for Sustainable Development, the United Nations Environment Programme Finance Initiative (UNEP-FI), and the Blended Capital Group.
Financial Stability and Systemic Risk: Lenses and Clocks discusses financial developments during the crisis, ongoing responses, and lessons learned, and makes recommendations to combat future crises, including integrated reporting. The paper aims to “apply sustainable finance and responsible investment principles to inform the financial stability debate.”