IFAC has called upon the G20 leaders to step up initiatives promoting the adoption and implementation of global standards for accounting, auditing, and auditor independence in a letter submitted to the Group in advance of its Pittsburgh, Pennsylvania Summit on the financial crisis in September.

In this submission, IFAC also called for the global adoption and implementation of International Public Sector Accounting Standards, vital for improving the transparency and accountability of governments as they conduct unprecedented takeovers, lending, guarantees, and bailouts of major market institutions, banks, and companies. In addition, IFAC urges that further steps be taken to enhance the governance of the International Accounting Standards Board to ensure its legitimacy and ability to act independently, without inappropriate political interference, in its role as a standard setter.

The IFAC submission, which outlines in total eight recommendations to the G20 to foster financial stability, was developed during the G20 Accountancy Summit, held in London on July 23−24. More than 60 global accountancy leaders, representing professional accounting organizations in 17 of the G20 countries, attended the summit to achieve consensus on the profession’s continued response to the financial crisis. The recommendations developed at this summit build on the previous submission provided by IFAC to the G20 in March 2009.

Other key recommendations outlined in the submission include the following:
• Developing measures to enhance corporate governance in the global marketplace
• Explicitly addressing the needs and realities of small- and medium-sized enterprises in the formulation and implementation of policies and reforms
• Committing to the long-term strengthening of the profession in developing and emerging countries
• Supporting the development of new tools and metrics for achieving global sustainability

The G20 letter, with the full list of recommendations, is available in the section of the IFAC website devoted to the global financial crisis at www.ifac.org/financial-crisis.

IFAC welcomes the opportunity to contribute through this submission and through future cooperation with the G20. The accountancy profession stands ready to assist global leaders by sharing its experience and knowledge in the building of global solutions to the economic downturn.