The International Federation of Accountants^® (IFAC^®) today announced the selection of the Chartered Institute of Public Finance and Accountancy (CIPFA) to partner with the Institute of Chartered Accountants of Zimbabwe (ICAZ) and the Public Accountants and Auditors Board, Zimbabwe (PAAB), to strengthen the capacity of public sector accountancy.

“This partnership will enhance the ability of Zimbabwe’s accountancy profession to fully support the needs of the country’s public sector,” said Alta Prinsloo, IFAC Executive Director, Strategy, and Chief Operating Officer. “Stronger accountancy capacity in the public sector will contribute to transparency and accountability, which are crucial for all nations.”

The partnership will have two main components: establishing a project stakeholder advisory group and developing a comprehensive roadmap to strengthen accountancy capacity in the public sector.

“We are looking forward to working with our colleagues in Zimbabwe to help improve public services for the people who need them,” said Gillian Fawcett, Head of CIPFA’s Governments Faculty. “As the world’s only professional accountancy body dedicated to public finance, we can offer insight into best practice from around the globe. Our work, such as conducting public financial management readiness assessments for the World Bank, including in Zimbabwe in 2011, means we are geared up for this challenge. Working with our partners, ICAZ and PAAB, we have a real opportunity to strengthen public financial management in Zimbabwe.” 

In 2014, IFAC received almost £5 million from the UK Department for International Development (DFID) to fund professional accountancy organization (PAO) capacity building in ten emerging countries over a period of seven years. The selection of CIPFA was made following a global Call for Expressions of Interest and an extensive proposal and review process involving multiple global organizations and the IFAC PAO Capacity Building Program Oversight Committee and Independent Selection Panel. This new partnership will continue to build on the funding agreement and Zimbabwe will join Ghana, Rwanda, and Uganda, where projects making use of the funding are underway.

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. It 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. ‘International Federation of Accountants’ and ‘IFAC’ are registered trademarks of IFAC in the US and other countries.

About CIPFA
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world's only professional accountancy body to specialise in public services, we champion high performance in public services, translating our experience and insight into clear advice and practical services. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services

About DFID
The UK Department for International Development (DFID) leads the UK’s work to end extreme poverty. They are ending the need for aid by creating jobs, unlocking the potential of girls and women and helping to save lives when humanitarian emergencies hit. For more information, visit www.gov.uk/dfid.

The International Public Sector Accounting Standards Board (IPSASB) has published The Applicability of IPSASs and a revised Preface to International Public Sector Accounting Standards (Preface), which change how the IPSASB communicates the type of public sector entities that it considers when developing an IPSAS or Recommended Practice Guideline (RPG).

Until now, IPSASs and RPGs have included a definition of a Government Business Enterprise (GBE) and a statement that GBEs apply International Financial Reporting Standards. The definition of a GBE has proved ambiguous in places and difficult for preparers to interpret.

The main amendments:

• Provide the characteristics of public sector entities for which IPSAS are designed in the revised Preface;
• Replace the term “GBEs” with the term “commercial public sector entities;”
• Delete the definition of a GBE in IPSAS 1, Presentation of Financial Statements; and
• Amend the scope section of each IPSAS and RPG by removing the paragraph that states that these pronouncements do not apply to GBEs.

These amendments address constituents’ concerns about the application of IPSASs to public sector entities and different interpretations of the GBE definition. 

“This principles-based approach communicates more transparently the types of public sector entities that the IPSASB considers when developing IPSASs and RPGs,” said IPSASB Chair Ian Carruthers. “As this approach is drawn from The Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities it enhances the consistency and understandability of the IPSASB’s literature.”

“These changes also acknowledge the role that regulators have in determining which accounting standards should be applied by different entities in their jurisdictions,” Mr. Carruthers added.

To support constituents’ understanding of these amendments, a marked-up and a clean version of the Preface have been made available on the IPSASB website. The IPSASB encourages IFAC member organizations, associates, and regional accountancy organizations to promote the availability of these documents to their members and employees.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. It receives support (both direct financial and in-kind) from the Government Accounting Standards Board, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, the New Zealand External Reporting Board, and the governments of Canada, New Zealand, and Switzerland.

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.

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. It 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.

The ‘International Public Sector Accounting Standards Board,’ ‘International Public Sector Accounting Standards,’ ‘Recommended Practice Guidelines,’ ‘International Federation of Accountants,’ ‘IPSASB,’ ‘IPSAS,’ ‘RPG,’ ‘IFAC,’ the IPSASB logo, and IFAC logo are trademarks of IFAC, or registered trademarks and service marks of IFAC in the US and other countries. 

The International Auditing and Assurance Standards Board (IAASB) today released its 2014/2015 Biennial Report, Championing Change in the Public Interest. The report highlights key outputs from the board in the past two years, including the Framework for Audit Quality and the new and revised Auditor Reporting standards.

Commentary from IAASB Chairman Prof. Arnold Schilder, IAASB Technical Director Kathleen Healy, and IAASB Consultative Advisory Group Chair Matthew M. Waldron explains how the IAASB is responding to the ever-evolving environment in which audits and other assurance services are conducted.

“As the independent global auditing and assurance standard setter, we have accomplished much in the last two years, delivering against stakeholders’ expectations while adhering to a rigorous due process,” highlighted Prof. Schilder. “Our efforts outlined in our Strategy for 2015 – 2019 are well underway. We continue to forge ahead—intensely focused on outreach and collaboration to understand in particular where our international standards can and should be revisited in order to enhance audit quality.”  

“This report represents our initial attempt to demonstrate integrated thinking in how the board conducts itself and uses its limited resources to best serve the public interest, in light of our focus on innovation in reporting,” noted Ms. Healy. “At the same time, we hope this report will better acquaint investors and audit committees with our mission and efforts, stimulating further interest in our current agenda and opportunities for increased interactions with our stakeholders.” 

The report also outlines the status of the board’s key priorities and provides links to where further information is available on the IAASB’s website.

One of the current priorities is the IAASB’s Invitation to Comment, Enhancing Audit Quality in the Public Interest, which addresses the topics of professional skepticism, quality control, and group audits. The deadline for comments is May 16, 2016.

Additionally, the IAASB is investing substantial efforts in a project to revise the International Standard on Auditing addressing accounting estimates, including fair values.

About the International Auditing and Assurance Standards Board (IAASB) 
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC).

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. It 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.

The Applicability of IPSASs and a revised Preface to International Public Sector Accounting Standards (Preface), change how the International Public Sector Accounting Standards Board communicates the type of public sector entities that it considers when developing an IPSAS or Recommended Practice Guideline (RPG).