Jason Piper

Job Title

Head of Tax and Business Law, ACCA

Jason is Head of Tax and Business Law in the Professional Insights team at ACCA, the global body for professional accountants, leading policy work on the two closely related fields. His research covers all aspects of business form and their regulation, how they interact with tax systems and the wider economic and social environment, including the influence of technological change on the regulatory and economic environments for business, their advisers and stakeholders. Jason represents ACCA on tax, business law and economic crime issues at UK, regional and international level.

Key Messages to the UN's COP 25 from the Accountancy Profession

English

As the UN Climate Change Conference (COP) meets this week, IFAC urges decisive action to put the world on a path to a sustainable future. To clearly articulate the role of the global accounting profession in addressing the climate emergency, IFAC published its Point of View on climate action.

In the Point of View, IFAC sets forth recommendations for various stakeholders:

  • Governments can take advantage of The UN Climate Change Conference of the Parties (COP) to provide clear direction on reducing long-term emissions, to deliver greater certainty for business, and to encourage investment in low-emissions technology and innovation.
  • Businesses can accelerate plans for climate change mitigation and adaptation. They can deliver transparency and confidence through reliable and decision-useful climate related information.
  • Professional accountancy organizations (PAOs) have an influential role in influencing climate change mitigation and adaptation as advocates for the profession and providers of accounting training and support. PAOs can commit to keeping accountants informed of how they can support their organizations’ and clients’ efforts to respond to climate risk.
  • Accountants can encourage and enable meaningful action on climate change as influential advisors in governments and organizations. They can achieve this by providing relevant insights, analysis, reporting, and assurance to help organizations create and protect value over the long-term.

At the global level, IFAC is committed to working with the global profession to build the knowledge and capacity of accountants to meet the Sustainable Development Goals (SDGs) and to speaking out on climate action on behalf of the accounting profession, working through the B20, G20, and OECD.

“Ignoring the impact of climate change is not an option – nor is business as usual,” said IFAC CEO, Kevin Dancey. “As instrumental members or advisers of every government, business, and not-for-profit organization, professional accountants must influence and enable the transition to a low-carbon society.”

The conversations at COP 25 this week will be particularly important to provide clarity in reducing long-term emissions to meet the Paris Agreement. All actors in the global economy must usefully contribute, and professional accountancy remains a committed part of the solution.

About IFAC
IFAC 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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

 

Climate Action

Climate change is an urgent, global, and systemic issue that can threaten the sustainability of organizations, markets, and economies. It presents both physical risks (e.g., increasingly severe weather events) and transition risks (e.g., those associated with moving towards a low-carbon economy that may affect asset values or lead to higher costs of doing business).[1] A low-carbon transition will change how economies operate creating both uncertainty and significant opportunities.[2]

A transition to a low-carbon society cannot be achieved by business as usual. Climate action will require relevant policy initiatives and incentives, consistent and well-considered regulation, robust climate risk assessment, responsive business practices, and high-quality disclosures that advance climate action and adaptation. As instrumental members or advisers of every government, business, and not-for-profit organization, professional accountants can influence and enable the transition to low-carbon economies.

IFAC commits to work with the global accountancy profession to:

  1. Build the knowledge and capacity of accountants to advance the Sustainable Development Goals (SDGs), which provide an interconnected roadmap to a prosperous, equitable and sustainable future. The SDGs include SDG 13, which is a commitment by all 193 United Nations member states to take urgent action to combat climate change and its impacts. Climate risk affects the overall sustainable development agenda through the environmental and social challenges arising from climate inaction; and
  2. Be the global voice on climate action on behalf of the profession working through the B20, G20 and OECD.

We call on our member organizations, individual accountants, and accountancy groupings[3] to embrace climate action and be part of the solution. 

1. Role of Government, Business, and Others

Government, business, and civil society will need to act together to bring about decisive climate action. International agreements and commitments are important, as are national policies to reduce greenhouse gas emissions. Businesses and the economies in which they operate need the right incentives for both production and consumption to transition to a low-carbon economy.

  • IFAC supports the Paris Agreement[4] as the means to transition to a low-carbon future. Although the Paris Agreement and SDG 13 strengthen the global response to climate change through international dialogue, greenhouse gas emissions continue to increase. Current national emissions reduction pledges and efforts are insufficient to achieve the goals of the Paris Agreement.
  • IFAC urges governments to take decisive action to put the world on a path to a sustainable future. Governments should take advantage of opportunities like The UN Climate Change Conference (COP) meetings in December 2019 and November 2020 to provide greater certainty for business and to encourage investment in low-emissions technology and innovation.
  • IFAC believes that a transition to a low-carbon economy will require relevant market-based policy and regulatory initiatives and incentives across jurisdictions, as well as enhanced climate risk assessment and reporting. Long-term emissions strategies, targets, and budgets provide the necessary certainty for organizations to undertake significant investments in decarbonizing and in innovative low-carbon technologies to reduce emissions.
  • By treating climate risk like any other significant risk, boards of directors should be able to evaluate the impact of climate change on the organization’s long-term business strategy and assets. Boards can then ensure that capital allocation and investment decisions respond to climate risk and provide the basis for seizing opportunities that can lead to competitive advantage. 

1. Climate change and extreme weather risk are in the top 5 of the World Economic Forum’s 2019 Global Risks Perception Survey of business leaders. The 2019 KPMG Global CEO survey (1,300 CEOs, 11 countries) puts environmental/climate change risk as the number one risk with “over three-quarters of CEOs (76 percent) saying that their organization’s growth will depend on their ability to navigate the shift to a low-carbon, clean-technology economy.”

3. The Prince of Wales’s Accounting for Sustainability Accounting Bodies Network is also responding to this challenge and will be announcing their commitment to climate action in 2020.

4. The Paris Agreement is the global climate agreement at the 21st Session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC) in Paris in December 2015. It delivers a clear framework for international action and shaped a policy environment to facilitate investment and innovation in climate mitigation and adaption.

2. Role of Professional Accountancy Organizations (PAOs)

PAOs have an influential role in achieving both climate change transition and adaptation at individual business, industry sector, and economy-wide levels. PAOs will need to work with others in pursuit of solutions.

  • IFAC believes the voice and perspective of PAOs matter in the debate about climate change. PAOs can advocate for consistent and well-considered policies and regulation, as well as useful management information and disclosure about climate risk. PAOs need to cultivate partnerships and work in concert with a wide range of stakeholders including governments, regulators, stock exchanges, business organizations and coalitions, and the academic community to address this challenge.
  • IFAC supports PAOs in their role to keep accountants informed of how they can support their organizations’ and clients’ efforts to manage and report on climate risk. PAOs have an important role in providing their members with the training, support, and infrastructure needed to apply their skills to climate change adaptation and reporting.
  • IFAC believes there is an urgent need for more relevant, reliable and comparable information (see Enhancing Corporate Reporting) which includes climate risk disclosures.[5] While more companies are acting to understand and deal with their climate risk, many companies are failing to fully examine or disclose their climate risk and emissions. The profession needs to help deliver high-quality climate-related disclosures that enable investors and others to make better informed decisions about capital allocation, and that engage businesses on the resilience of their strategies and business models.

5. The Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) delivered widely-accepted recommendations for consistent, comparable, and reliable disclosures of climate-related information. Used in conjunction with integrated reporting, the recommendations should provide the foundation for incorporating climate risk into an organization’s thinking and communications on long-term value creation.

3. Role of Professional Accountants

Accountants are influential in governments, not-for-profits, and businesses large and small. With their responsibility to act in the public interest, accountants are uniquely positioned to enhance meaningful action on climate change by providing relevant insights and analysis, reporting, and assurance to help organizations create and protect long-term value.

Professional Accountants in their various roles at governance, strategic, and operational levels have a significant contribution to make in helping governments, capital markets, and businesses develop and implement plans for climate change mitigation and adaptation. IFAC will continue working with its member organizations and others to support and facilitate the involvement of professional accountants in climate action in the following areas:

  • Providing objective data and insights to help organizations set and achieve appropriate emissions targets
  • Contributing to efforts to integrate climate change risk into governance, strategy, finance, and operations, and enabling reliable and decision-useful climate related information.
  • Delivering insights on the financial impacts of climate risk and how it relates to revenues, expenditures, assets, liabilities, and financial capital.
  • Providing assurance on climate information serving to enhance confidence in public disclosures[6] and to facilitate capital flows to sustainable organizations.
  • Advising on potential changes in tax law dealing with emissions regulations and helping fulfill evolving tax requirements impacted by climate change.

6. The assurance of GHG emissions disclosures at a national or entity level is supported by the International Standard on Assurance Engagements™ 3410 covering GHG statements

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Tax Planning and Related Services

Consistent with the SWP strategic theme “Elevating Ethics in a Dynamic and Uncertain World,” the objectives of the Task Force (TF) are to:

(a)         Gather an understanding of regulatory, practice and other developments in corporate and individual tax planning by PAIBs and PAPPs.

(b)         Identify and analyze the ethical implications of those developments and determine whether there is a need for enhancements to the Code or further actions.

Candidates Sought to Serve on the International Auditing and Assurance Standards Board

English

A global search has begun for highly qualified volunteers to fill seven volunteer openings on the International Auditing and Assurance Standards Board (IAASB) as Board Member for an initial term of up to 3 years, commencing January 1, 2021.

As a result of the IAASB’s normal rotation cycle, the current search, being conducted by a nominating committee, is for one public member, one non-practitioner member and five practitioner members. All stakeholders, including the general public, are invited to apply or nominate candidates. 

For public member and non-practitioner vacancies, the nominating committee is interested in candidates from a wide range of relevant backgrounds, including: users of audited financial statements or assurance reports (e.g. institutional investors and analysts, audit committee members, and individuals from the corporate governance community); regulatory and audit inspection or oversight bodies; preparers of financial reports; academics; and individuals in the government sector.

For practitioner vacancies, nominations of candidates from small- and medium-sized practices (SMPs) are strongly encouraged.

Candidates should have experience with auditing and/or assurance issues and sufficient knowledge of the subject matters considered by the IAASB to be important to contribute effectively to the board’s work. English proficiency is essential and gender balance remains an area of focus for the board. Additionally, nominations from currently underrepresented regions (Latin America, Africa and the Middle East), are strongly encouraged.

The IAASB is an independent standard-setting body that serves the public interest by setting, under its own authority, high-quality international standards. The nominations process, with public interest oversight, aims to select the most suitable candidates for the available positions, while also aiming to achieve gender, regional and professional balance.

For more information and to learn how to submit an application before the January 31, 2020 deadline, please visit the nominating committee’s web page.

IFAC Launches "Exploring the IESBA Code"

English

Professional accountants and other business professionals are often faced with complicated, real world situations that are not black and white and demand pragmatic and ethical solutions. To help address these challenging situations, IFAC is releasing the first installment in a new series titled: Exploring the IESBA Code.

Through twelve monthly installments, Exploring the IESBA Code will take an in-depth look at the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).  Each installment of the series will highlight different aspects of the Code in real-world situations, in a manner that is relatable and practical. A special focus will be placed on recent revisions to the Code.

The first installment of the Exploring the IESBA Code deals with the five Fundamental Principles of ethics, which establish the standard of behavior expected of all professional accountants - a standard which enable accountants to uphold their responsibility to act in the public interest.

To read and download this and future installments, visit the IFAC website.

The Exploring the IESBA Code was published by IFAC and does not form part of the Code. It is non-authoritative and is not a substitute for reading the Code. 

For more information about the Code, please click here.

 

An Informational Series to Promote the Code of Ethics

Professor Sir Andrew Likierman

Job Title

Professor of Management Practice in Accounting, London Business School

Andrew was educated at the University of Vienna and Balliol College Oxford. He is Professor of Management Practice at the London Business School having previously been Professor of Accounting and Financial Control. He has also served in a number of administrative roles, including as Dean from 2009 to 2017. His current research is on the role of judgement in management after he became curious as to why judgement, which is generally highly valued, is not developed or used in management. He has an Honorary Doctorate from the London Business School and from three other universities.

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