Nominations for the IFAC International Gold Service (IGS) award are now open. This prestigious award recognizes outstanding leaders for their contributions to the accountancy profession on the global level. These contributions should be unique, innovative, and recognized worldwide—beyond national professional accountancy organizations and IFAC.

Past recipients include Ian Ball in 2014, recognized for his many contributions to the global accountancy profession and his groundbreaking work in public sector accounting and transparency, as well as Professor Mervyn King in 2012, and Sir David Tweedie and Professor Stephen Zeff in 2011.

Please email a CV and letter of support, stating why the individual’s contributions to the global profession are worthy of recognition, to Anna Lee (AnnaLee@ifac.org) by March 15, 2016. The letter of support should be signed by the president and/or chief executive (or equivalents) of the nominating organization. IFAC members, associates, and affiliates may nominate candidates.

If awarded, the IGS Award will be presented at the annual Council meeting in Brazil in November 2016.

A report on global regulation issued today by the International Federation of Accountants^® (IFAC^®) calls for political leaders and governments around the world to follow ten principles for consistent, high-quality global regulation, to aid global economic growth.

The ten principles were identified by 30 senior executives and experts from regulatory agencies, financial markets, government, academia, listed companies, investment funds, and the accounting profession at a roundtable in Hong Kong convened by IFAC in partnership with the Hong Kong Institute of Certified Public Accountants (HKICPA).  The principles are intended to help guide regulators toward better decisions and protect the global economy from the dangers posed by a patchwork approach to regulation.

While business and finance are increasingly global, roundtable participants warned that important regulation is not. Instead, it is frequently focused on national interests, which can create barriers and impediments to inclusive growth and jeopardize global financial stability.

“This clear signal from a broad, non-partisan group in one of the world’s most important trading centers highlights the urgent need for a more globally consistent approach to regulation,” said Fayez Choudhury, IFAC Chief Executive Officer. “We need a clear change in the will—and resources available—for international regulatory cooperation.

“The current fragmentation is creating a regulatory environment that encourages more risky trading and financing activities in often unregulated domains, and allows for the exploitation of gaps in regulation globally,” Choudhury said.

Several actions were discussed to foster a more integrated global regulatory framework that can create a better environment for economic growth:

Stronger systems and incentives for cross-border regulatory collaboration and cooperation.

• Beyond consultation within the regulatory community, lack of resources and different national financial ecosystems make true collaboration with a broader set of stakeholders a challenge.
• Greater incentives are required before regulators can look beyond national interest, and consider long-term, global implications of regulation.

Systematic review of regulations to determine whether implementation and impact match expectations.

• Current regulatory systems often focus on writing regulation rather than evaluating effectiveness. Not all existing regulations are implemented in practice.
• Rapid change in business and financial markets requires continued flexibility. Much regulation is outdated by the time it is implemented, often years after originally proposed.
• Independent oversight of regulation would allow collaborative discussion and better analysis of costs and benefits.

10 clear principles for high quality financial regulation rather than a reactive response.

• To serve the public interest, regulation needs to be evidence-based, proportionate, appropriately resourced, collaboratively developed/implemented, consistent, subject to active oversight, systematically reviewed, have clear objectives, and be properly targeted and enforced to address intended issues.
• They must be developed in consultation with the public, and affected constituencies.

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 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

While business and finance are increasingly global, regulation is frequently not. Often focused on ‘national interest’ – which can create barriers to inclusive growth and jeopardize the global economy – this report identifies ten key principles for consistent, high-quality, global regulation.

The principles are derived from a round table held in Hong Kong in December 2015, which brought together 30 key senior executives and experts from regulatory agencies, financial markets, government, academia, listed companies, investment funds and the accounting profession. 

The International Public Sector Accounting Standards Board^® (IPSASB^®) today released for comment Exposure Draft (ED) 61, Amendments to Financial Reporting under the Cash Basis of Accounting (the Cash Basis IPSAS™).

The Cash Basis IPSAS has two parts. Part 1 identifies requirements that a reporting entity needs to adopt to claim that its financial statements comply with the IPSAS. It presently includes requirements for preparation of consolidated financial statements and for disclosure of information about external assistance and payments made by third parties. ED 61 proposes that these requirements be revised, recast as encouragements, and moved into Part 2 of the IPSAS. Part 2 identifies encouraged disclosures that an entity may choose to provide, but which are not required to claim compliance with the IPSAS.

The ED also proposes amendments to ensure that the existing requirements and encouragements of the Cash Basis IPSAS are better aligned with the equivalent accrual IPSAS, unless there is a reason to deviate as a result of adopting the cash basis of accounting. This will better support entities’ expected use of the Cash Basis IPSAS as a platform from which to transition to accrual IPSAS.

“The amendments proposed in ED 61 aim to remove practical obstacles to implementation of the Cash Basis IPSAS,” said IPSASB Chair Ian Carruthers. “These proposals respond to views expressed by our constituents that wider adoption of the Cash Basis IPSAS will enhance financial reporting by governments in developing economies that adopt a cash basis of accounting. They should also strengthen the Cash Basis IPSAS in its role as an important transition path to adoption of accrual IPSAS. We look forward to receiving constituents’ views on these proposals.”

First issued in 2003, the Cash Basis IPSAS is the only IPSASB pronouncement that deals with the cash basis of accounting. Respondents to the IPSASB’s 2014 strategy consultation supported retaining the Cash Basis IPSAS.

“The primary role that the Cash Basis IPSAS plays in the IPSASB’s overall standard-setting strategy is as a stepping stone to adoption of accrual IPSAS,” explained Mr. Carruthers. “While robust reporting on the cash basis contributes significantly to broader improvements in public sector financial management in many jurisdictions, it provides only part of the information that the users of financial statements need for accountability and decision-making purposes. Such information is best provided by adoption of accrual IPSAS.”

How to Comment

The IPSASB seeks comment on those paragraphs or sections of the Cash Basis IPSAS that are proposed for amendment. To enhance understanding of the proposals, a marked-up version of the Cash Basis IPSAS reflecting the changes proposed in ED 61 is available on the IPSASB website.

To access the ED, the marked-up proposed IPSAS, and the At-a-Glance document, which provides a summary of the ED, or to submit a comment, please visit the IPSASB website at www.ipsasb.org. Comments on the ED are requested by July 31, 2016. The IPSASB encourages IFAC members, associates, and regional accountancy organizations to promote the availability of this ED 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 World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland.

Working at IPSASB
The IPSASB is currently seeking self-motivated individuals with strong project management skills and an interest in technical accounting issues. Candidates should possess good interpersonal skills, and a background in standard-setting or experience in technical accounting analysis. Visit Working at IFAC or email a resume (CV) and cover letter to jobs@ifac.org.

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.