Changes in the technology used in the business world have an impact on the information and communications technology skills professional accountants need—both current accountants as well as aspiring accountants. Assessing necessary skills and meeting the need are a challenge for the accounting profession, especially when combined with the growing importance of behavioral skills.

Highlights from the IAASB's December 11 - 15, 2017 meeting in New York, NY. 

00:15 – Introduction: Matt Waldron, IAASB Technical Director
00:36 – Highlights & Key Developments: Matt Waldron, IAASB Technical Director
03:19 – ISA 540 (Revised): Rich Sharko, Task Force Chair and IAASB Member 
05:38 – ISA 315 (Revised): Fiona Campbell, IAASB Member 
10:05 – ISA 220 and ISQC 1: Megan Zietsman, IAASB Deputy Chair
19:49 – Closing Remarks: Matt Waldron, IAASB Technical Director

Dr. Jens Engelhardt became Technical Advisor to Prof. Dr. Jens Poll in January 2018. Dr. Engelhardt is Senior Manager in the Audit & Accounting Division at the German Chamber of Public Accountants (Wirtschaftsprüferkammer – WPK). He is a member of Accountancy Europe (AE)’s Professional Ethics and Competencies Working Group.

Dr. Engelhardt is a lawyer and holds a PhD in comparative law.

(New York, January 31, 2018) – The International Public Sector Accounting Standards Board^® (IPSASB^®) today released for comment Exposure Draft (ED) 64, Leases.

ED 64 proposes a single right-of-use model for lease accounting that will replace the risks and rewards incidental to ownership model in IPSAS 13, Leases. ED 64 also proposes new public sector specific accounting requirements for leases at below market terms (also known as “concessionary leases”) for both lessors and lessees.

For lessees, ED 64 proposes accounting requirements that are converged with the International Accounting Standards Board’s IFRS 16, Leases, by requiring the recognition of a right-of-use asset and a lease liability for all leases, except for short-term leases and leases of low-value assets.

For lessors, ED 64 proposes a right-of-use model specifically designed for public sector financial reporting that differs from the risks and rewards incidental to ownership model for lessors in IFRS 16 by:

(a)             Continuing to recognize and measure the leased asset according to the applicable IPSAS; and

(b)             Recognizing a lease receivable and a liability (unearned revenue) as a result of the lease contract, except for short-term leases.

The proposals in ED 64 address common public sector lease contracts where a lessor and a lessee are part of the same economic entity.

“Leases, including concessionary leases, are very important financing mechanisms in the public sector and in international organizations,” said IPSASB Chair Ian Carruthers. “The proposals in ED 64 will provide better information on the financial impacts of leases and therefore enhance both the accountability of an entity for its management of resources and improve the quality of information for decision-making.”  

Comment Deadline: June 30, 2018

How to Comment
To access the Exposure Draft and its summary At-a-Glance document, or to submit a comment, visit the IPSASB website at www.ipsasb.org. Comments on the Exposure Draft are requested by June 30, 2018. The IPSASB encourages IFAC member organizations and regional accountancy organizations to promote the availability of this Exposure Draft to their members and employees.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through the development of accrual-based International Public Sector Accounting Standards® (IPSAS®) and other guidance for use by governments and other public sector entities. It receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

Globally there are 60 countries that do not have professional accountancy organizations (PAOs), and, there are an additional 93 PAOs that do not have sufficient capacity to function effectively at all levels. IFAC (The International Federation of Accountants) continues its work in providing effective guidance to PAOs for enhanced governance. Strong governance enriches PAOs’ mission and vision, resulting in improved quality of financial management systems in emerging economies.

IFAC has released a new publication, ‘Focusing on Performance’, to build awareness within the PAO community to provide guidance and encourage best governance practices and principles within their current governance arrangements. The publication also features a self-assessment tool for PAOs to utilize when reviewing their governance framework. 

IFAC continues to identify and share PAO’s governance experiences and success stories via the Global Knowledge Gateway. Visit the site now for resources and thought leadership.

Mike Mbaya first served as a technical advisor to the IFAC SMP Advisory Group (SMPAG) from January of 2015. After serving a 3 year term, he was appointed as a full member of the same committee commencing January 2018. He was nominated by the Institute of Certified Public Accountants of Kenya (ICPAK).

Mr. Mbaya is the lead partner of  Mbaya & Associates which is a highly reputed mid-sized accounting practice in Kenya. He has been an accounting practitioner for close to 20 years serving the African region and he has an enviable exposure and understanding of governance and accounting matters in developing nations.

Mr. Mbaya joined the Institute of Certified Public Accountants in 2004 and has served on their Practitioners Development Committee for 7 years. He has also served as a Treasurer of the East African Wildlife Society which is a leading conservation body in Africa. He has also served as the Treasurer of the Kenya Harlequins Rugby Football Club, these two positions demonstrate his love for Nature and Rugby Football Union.

Mr. Mbaya is a Certified Public Accountant in Kenya and has a Masters Degree in Development Finance from the University Of Stellenbosch, to go with his Bachelor of International Business Administration Degree from the United States International University.

Johnson Kong was appointed as a Member of the Small and Medium Practices Advisory Group in November 2017. He was nominated by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). He is the Deputy Chair of the SMPAG and chairs the SMP Business Support Task Force.

Mr. Kong, a Past President of HKICPA and an appointed Accounting Advisor to the PRC Ministry of Finance, has over 35 years of professional accounting experience and specializes in restructuring, insolvency, forensic and litigation support works. He is the Managing Director of BDO Hong Kong, a Firm which he has been with for over 30 years, and responsible for all its non-Assurance services.

Andrew Brathwaite was appointed to the IFAC SMP Advisory Group (SMPAG) in January 2018. He was nominated by the Institute of Chartered Accountants of Barbados.

Mr. Brathwaite is currently the principal of a small accounting and auditing practice in Barbados. Prior to this he was an Audit Partner with KPMG in Barbados and the Eastern Caribbean. He has almost 25 years of experience in the profession, providing audit, tax, and business advisory service to a wide range of SMEs in various industries.

Mr. Brathwaite was the President of the Institute of Chartered Accountants of Barbados between May 2017 and May 2019, having previously served in that capacity from May 2010 to May 2012. He has served on the Council's Institute since 2002, chairing a number of committees and also served for six years as a director and alternate director of the Institute of Chartered Accountants of the Caribbean. Mr. Brathwaite served as a member of the SME Implementation Group of the IFRS Foundation from 2010 to 2016. He is a fellow of the Institute of Chartered Accountants of Barbados and a member of the Chartered Professional Accountants of Nova Scotia.