The International Auditing and Assurance Standards Board (IAASB) has published new guidance to help users understand the impact on the International Standards on Auditing (ISAs) due to narrow-scope amendments made to International Accounting Standard (IAS) 1, Presentation of Financial Statements by the International Accounting Standards Board (IASB).
While the IAASB remains framework neutral when developing the ISAs, it considers financial reporting framework developments that may affect the ISAs, such as changes to the International Financial Reporting Standards (IFRS). Amendments to IAS 1 and the Impact on the ISAs: Disclosure of Material Accounting Policy Information, among other matters, provides users with guidance on how to address the effect of the amendments on a number of illustrative auditor reports throughout the ISAs that assume, as part of the fact pattern, that the financial statements are prepared by the management of the entity in accordance with IFRSs.
The new guidance does not amend or override the ISAs, the texts of which alone are authoritative. Reading the new guidance is not a substitute for reading the ISAs.
Amendments to IAS 1 and the Impact on the ISAs: Disclosure of Material Accounting Policy Information has been developed by the International Auditing and Assurance Standards Board’s (IAASB’s) International Accounting Standards Board (IASB) Liaison Working Group to address the impact on the International Standards on Auditing (ISAs) of certain narrow-scope amendments made by the IASB to International Accounting Standard (IAS) 1, Presentation of Financial Statements (the “amendments”).
Public financial management (PFM) reforms will only be achieved through finance professionals with the right skills and knowledge.
Governments are implementing PFM reforms in a bid to improve the accountability, transparency, governance and integrity of revenues and spending. But many reforms have addressed structures, systems and processes rather than people and capabilities, according to ACCA (the Association of Chartered Certified Accountants) and the International Federation of Accountants (IFAC).
A new joint ACCA/IFAC report – released at the World Congress of Accountants (WCOA) held in Mumbai India 18-21 November – aims to boost PFM reforms across the globe.
A Global Guide for Professionalisation in Public Sector Finance outlines what professionalisation means in public sector finance, sets out the benefits of professionalisation, and offers a high-level roadmap to support global good practice in professionalisation.
Discussing the global guide ahead of a panel discussion at WCOA, Joseph Owolabi, ACCA President, said: ‘Professionalisation brings credibility, trust and confidence in public finances by supplementing the systems and public finance processes with the right skills for accountability, transparency, good governance and external scrutiny. A professionalised workforce within a finance function supplies more than accounting information. They bring wide value to public sector finances – providing improved revenue collection, effective budgetary controls, and the data required to support policy decision making.’
Kevin Dancey, IFAC CEO, said: ‘We are looking to rebalance the focus so that it is not only on the process but also on the people. The value of the accountancy profession, whether in the public or private sectors, comes from the experience, skills, judgement and ethical behaviour of its people. By increasing the number of professional accountants working in the public sector, we will no doubt add to the credibility and effectiveness ofPFM, and reinforce trust in public services and spending.'
Achieving professionalisation brings multiple benefits to the economy, governments and individuals. A key benefit for economies is greater financial credibility; for governments improved financial management discipline; and for individuals gaining access to diverse career options.
The report acknowledges that achieving professionalisation is not straightforward or easy. It requires political will, structures, adoption and implementation of complex policies plus continuous development and improvement.
The report has case studies of good practice from Tanzania, the UK, Cyprus, the Philippines Pakistan, Malaysia and Wales.
Alex Metcalfe, ACCA’s Head of public sector, said: ‘Political leadership and commitment for professionalisation is the most important factor for sustaining PFM reforms over time. In some countries, there is a lack of recognition that change is needed at all. In other countries, PFM reforms have concentrated on moving from cash-based to accrual-based accounting. But now more effort is urgently required to professionalise public finance staff and provide opportunities for training for professional qualifications.’
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 180 members and associations in 135 jurisdictions, representing more than 3 million accountants, in public practice, education, government service, industry and commerce.
About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants.
We’re a thriving global community of 241,000 members and 542,000 future members based in 178 countries and regions, who work across a wide range of sectors and industries. We uphold the highest professional and ethical values.
We offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential for the creation of sustainable organisations and flourishing societies.
Since 1904, being a force for public good has been embedded in our purpose. In December 2020, we made commitments to the UN Sustainable Development Goals which we are measuring and will report on in our annual integrated report.
We believe that accountancy is a cornerstone profession of society and is vital helping economies, organisations and individuals to grow and prosper. It does this by creating robust trusted financial and business management, combating corruption, ensuring organisations are managed ethically, driving sustainability, and providing rewarding career opportunities.
And through our cutting-edge research, we lead the profession by answering today’s questions and preparing for the future. We’re a not-for-profit organisation. Find out more at accaglobal.com
Professionalisation of the workforce is one of the most important steps in achieving step change in public sector financial management
Volunteers are sought to serve as members on the International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting body that serves the public interest by setting high-quality accounting standards for use by public sector entities around the world in the preparation of general purpose financial reports.
Volunteers’ initial three-year term of service will commence January 1, 2024. Candidates will ideally have a public sector background and/or experience in standard setting to be able to contribute value to the work of the Board. English proficiency (both written and oral) is essential, as this is the language in which the IPSASB operates, although nominations from jurisdictions where English is not the main language, are encouraged.
Nominations of qualified candidates from all regions of the world are encouraged, with a particular emphasis on Francophone Africa, Latin America, and the Caribbean. Nominations from a wide range of relevant backgrounds are sought, including, but not limited to, candidates from:
Users of general purpose financial reports, such as parliamentarians, budget offices, and credit-rating agencies;
Ministries of Finance, Treasury Departments, and other such preparers of accrual-based financial statements, including those reporting directly or indirectly in accordance with IPSAS or in the process of transitioning to IPSAS; and
Public sector external auditors.
“In order to develop high-quality international standards and effectively promote IPSAS adoption, IPSASB volunteers need diverse backgrounds and skillsets,” said Ian Carruthers, IPSASB Chair. “With the continuing global transition to accrual IPSAS, I strongly encourage individuals that are using IPSAS, or actively transitioning to IPSAS, to apply and nominate candidates. In addition to the global impact volunteers can make, Board participation is also a valuable experience that benefits the volunteer and its nominating or employing organization.”
All stakeholders, including the general public, as well as International Federation of Accountants (IFAC) member organizations, the Forum of Firms, governments, and other organizations are invited to nominate candidates.
The deadline for submitting applications is January 31, 2023. Please see the Call for Nominations for more details and information on how to submit an application.
About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board 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 Nominating Committee
The Nominating Committee is responsible for the selection process for IPSASB membership, including leadership roles. The Public Interest Committee oversees the nominations process for IPSASB and provides its advice. The International Federation of Accountants® (IFAC®) Board approves the IPSASB composition. To learn more about the Nominating Committee, please visit IFAC website.
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.
As a global systemic risk, climate change has become a focal point for corporate sustainability disclosure. Getting to Net Zero: A Global Review of Corporate Disclosures analyzes disclosure trends in emissions reduction targets and transition plans of the 40 largest exchange-listed companies in 15 jurisdictions, for a total of 600 companies. The jurisdictions include G7 countries and 8 non-G7 countries for the 2020 reporting year.
