Individual investors deserve better quality financial information--top executives from the International Federation of Accountants (IFAC) told reporters at a briefing session this morning at the National Press Club--and having common global standards is one way to get it.
"Why should individual investors care about global standards?" asks Robert Bunting, IFAC President, asserting that standards level the playing field--so that the kind of information individuals receive about an investment in one part of the world is as reliable as what they receive in another. He explains that his organization's 157 member bodies in 123 countries continue to work toward implementing international standards in auditing, public and private sector accounting and ethics.
Ian Ball, IFAC's Chief Executive Officer, adds that common international public sector accounting standards (as set by IFAC's independent International Public Sector Accounting Standards Board [IPSASB]) are also critical to enhancing the quality of government financial reporting. This was why IFAC recommended to the G-20's summit in Pittsburgh in September that the Leaders should back global adoption of public sector standards, says Ball. "It's not just making decisions to invest in government securities where this makes a difference. To the ‘man-on-the-street,' public sector standards deliver information about a government's use of taxpayer funds," he adds.
Another issue Mr. Bunting addressed in the briefing is the importance of small and medium enterprises (SMEs) as the engine of the global economy--the primary source of new jobs, innovation and growth. Financial regulation should not place unreasonable obstacles in the path of SMEs--such regulation can stifle their growth.
The briefing session at the National Press Club was part of the activities surrounding IFAC's annual Council Meeting, an event attended by presidents and chief executives of professional accounting institutes from around the world.
About IFAC
IFAC (www.ifac.org) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.
