The results of new study, G20 Public Trust in Tax, which surveyed citizens across the G20 on issues of trust and international taxation, was released this week at a roundtable discussion that included the UK’s top tax administrator, HMRC Permanent Secretary Edward Troup, tax leaders from global firms, members of the accountancy profession, and the press.

The study, prepared by the Association of Chartered Certified Accountants, Chartered Accountants Australia and New Zealand, and IFAC, draws on the views of more than 7,600 people across G20 countries.

Some of the key findings include:

• people want governments to put tax cooperation ahead of tax competition—73% of people in G20 countries think it is important or very important for governments to cooperate with each other on tax policy to create a more coherent international tax system;
• 57% of people in G20 countries trust or highly trust professional tax accountants as a source of information about the tax system; and
• in contrast, people in G20 countries have become deeply distrustful of politicians when it comes to information about the tax system, with 67% either distrusting or highly distrusting politicians.

James R. Dalkin, CPA, CGFM, became Chair of the International Auditing and Assurance Board (IAASB) Consultative Advisory Group in March 2017.

Mr. Dalkin is a Director in the Financial Management and Assurance Team with the US Government Accountability Office (GAO). He has responsibility for directing GAO’s work to develop and maintain government auditing standards (the Yellow Book); internal control standards for the federal government (the Green Book); and GAO’s work with the accounting and auditing profession. He is also responsible for the audits of the US Securities Exchange Commission and the Federal Deposit Insurance Corporation.

In addition to his service with the IAASB, Mr. Dalkin previously served as a board member of the American Institute of CPA (AICPA)’s Auditing Standards Board and is an observer to the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Advisory Board.

Mr. Dalkin is a frequent speaker at national auditing conferences for the AICPA and other professional organizations. He has also authored articles for publications, including the Journal of Accountancy. Mr. Dalkin also is an Adjunct Professor at Georgetown University (US).

Nearly three-quarters of OECD countries have adopted accrual accounting for their year-end financial reports and more than a quarter now prepare their annual budgets on an accrual basis, according to the landmark study Accrual Practices and Reform Experiences in OECD Countries by the International Federation of Accountants (IFAC) and the Organisation for Economic Co-operation and Development (OECD).

The study, which examined accounting and budgeting practices at the national government level in OECD countries, discusses the challenges and benefits of accruals reforms and considers what steps countries are taking to make better use of accrual information in the future.

“High-quality financial reporting is essential to ensure that governments make fiscal decisions based on up-to-date information and an accurate understanding of their financial position,” said Fayez Choudhury, IFAC CEO. “They provide a mechanism through which legislatures, auditors, and the public at large can hold governments accountable for their financial performance.”

The study showed that most OECD countries have reformed and modernized their financial reporting practices over the last few decades:

• approximately three-quarters of OECD countries have adopted accrual accounting for their year-end financial reports as a key priority;
• more than a quarter of OECD countries prepare their annual budgets on an accrual basis; and
• audit techniques and accounting standard-setting mechanisms have also evolved significantly in the wake of accounting reforms.

The study also points out that while the direct adoption of international accounting standards, such as International Public Sector Accounting Standards (IPSAS) or International Financial Reporting Standards (IFRS), by national governments remains very low, many standard setters use IPSAS or IFRS as primary or explicit references for developing their national standards.

“While governments still seek to improve the usefulness and comprehensibility of their financial reports, a majority of OECD countries expressed satisfaction that accounting reforms have already resulted in greater transparency and accountability of their financial operations,” said Jón R. Blöndal, Head of the OECD Budgeting and Public Expenditures Division.

A digital version of the report can be found at on the IFAC and OECD websites.

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.

About OECD
Working with over 100 countries, the OECD is a global policy forum that promotes policies to improve the economic and social well-being of people around the world.

Highlights from the IESBA's March 13-15, 2017, meeting in New York, New York.

0:10 Introduction

0:40 Overview from IESBA Chairman Dr. Stavros Thomadakis

5:29 Professional Skepticism

8:00 Part C of the IESBA Code

10:00 Fees Working Group Update

11:41 Proposed Staff-Prepared Q&As on Long Association

12:25 Closing Remarks

The 2016 IFAC Global SMP Survey asked practitioners operating in small- and medium-sized practices (SMPs) a number of questions about the challenges they face, the market factors most likely to affect them in the future, the consulting services they provide, and their performance, both in 2016 and projected for the year ahead. In addition, respondents were asked about their small- and medium-sized entity (SME) clients, including questions around the challenges they face and the extent of their engagement in international activities.

Highlights from the IPSASB's March 7-10, 2017, meeting in Washington, DC.

00:10 Introduction

1:00 Overview of March 6 Seminar, Harnessing the Power of Accrual in Managing Public Finances, from IPSASB Chair Ian Carruthers 

3:00 Overview of IPSASB Meeting from Chair Ian Carruthers 

5:10 Heritage

6:40 Revenue and Non-exchange Expenses

8:00 Social Benefits

9:20 Strategy and Work Plan

12:10 Closing Remarks

Opportunities, lessons learned, and ongoing challenges in the adoption and implementation of international standards and best practices across the Middle East and North Africa (MENA) region were recently explored during an IFAC Statements of Membership Obligations (SMOs) workshop in Sweimeh, Jordan, on January 21, 2017.