Today over 175 delegates from 33 professional accountancy organizations in 30 countries convened in Kampala, Uganda, for the seventh annual IFAC Small and Medium Practices (SMP) Forum. Co-hosted with the Institute of Certified Public Accountants of Uganda (ICPAU) and the Pan African Federation of Accountants (PAFA), this year’s event featured a keynote address by Right Honorable Rebecca Kadaga, Speaker of the Parliament of Uganda.

The SMP Forum brings together representatives from the regulatory community, regional and national professional accountancy bodies, standard setters, and thought leaders and experts in their fields to collaborate on solutions to the challenges and pressures facing SMPs, both regionally and globally. This year’s event focused on trends that may impact the growth of small business and the way SMPs deliver their services. In addition to the co-hosts, the event was made possible by the generous support of our gold sponsor, the Association of Chartered Certified Accountants; and silver sponsors, Corpul Expertilor Contabili si Contabililor Autorizati din Romania (CECCAR), Hong Kong Institute of Certified Public Accountants (Hong Kong Institute of CPAs), and Institute of Chartered Accountants in England and Wales (ICAEW).

IFAC CEO Fayez Choudhury noted, “The IFAC SMP Forum is an important event that allows us to learn how we can best support professional accountancy organizations in the development of their SMP members globally. The focus on innovative solutions to the unique challenges SMPs face is essential for helping SMPs to continue to adapt and create value. With this event, we aim to facilitate capacity development, which has long been a focus for IFAC, through the sharing of ideas and best practices on a global platform.”

Naru Thakkar, president of ICPAU, and Dr. Mussa J. Assad, president of PAFA, said, “We are proud to host this year’s SMP Forum with IFAC, as supporting the development of SMPs is at the core of our mission and values. Africa has sustained continued growth over the last fifteen years despite economic volatility and crisis elsewhere in the world. While parts of Africa have seen explosive growth and other areas are still developing, the accountancy profession is crucial to providing a sound financial infrastructure to support both.”

IFAC SMP Committee Chair Giancarlo Attolini added, “The world is changing and standard setters, practitioners, and regulators are responding. There are vast opportunities for SMPs, including internationalization and expanded business lines. Now is the time to position SMPs for growth so that by the time the economic recovery gains more momentum globally, SMPs and the small businesses they serve can lead the way.”

For more information on the IFAC SMP Forum, including the agenda and speakers, see www.ifac.org/2013SMPForum. Presentations will be made available in the week following the event. A Trainers’ Seminar was also held in conjunction with the Forum for a smaller group of attendees.

About PAFA
The Pan African Federation of Accountants (PAFA) was established to accelerate the development of the accountancy profession in Africa and strengthen the voice of the profession within Africa and worldwide. PAFA believes that good governance, accountability, good financial management, and transparency are principal pillars in the acceleration of economic development and reduction of poverty.

About ICPAU
The Institute of Certified Public Accountants of Uganda (ICPAU) is the national body for professional accountants in Uganda. It currently offers two qualifications: the professional qualification  (CPA Uganda) and the accounting technician certificate (ATC). These qualifications are based on IAESB standards thus providing graduates with an excellent foundation of core accountancy skills that meet international benchmarks. ICPAU’s focus is to produce individuals who exhibit professional excellence and integrity, who are committed to service and good governance, and who are socially responsive to the environment in which they operate. 

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 172 members and associates in 129 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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AccountacyAge has published an in-depth interview with IFAC’s new CEO, Fayezul Choudhury, which discusses some of his goals as he takes the reins at IFAC.

The International Federation of Accountants today announced that the Chartered Global Management Accountant (CGMA) designation—a joint venture of the American Institute of CPAs (AICPA) and Chartered Institute of Management Accountants (CIMA)—has been awarded the top sponsorship for the 2014 World Congress of Accountants by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC).

Held every four years, the World Congress of Accountants (WCOA) is among the most prestigious events in the profession and attracts more than 5,000 global delegates each time it meets. WCOA 2014, hosted by the CNDCEC, will take place November 10-13 in Rome’s Auditorium Parco della Musica. The theme—2020 Vision: Learning from the Past, Building the Future—will explore the pivotal role of accounting amid rapid economic, political, and social change. Delegates will discuss and debate best practices of the future and how accountants can lead the way in driving innovative and successful organizations.

“We are very excited by CGMA’s Imperial Sponsorship of WCOA 2014 and commend CNDCEC for its efforts in securing it,” said IFAC CEO Fayezul Choudhury. “The World Congress provides a unique opportunity for accountants from around the world to network, interact, and share knowledge. We appreciate CIMA’s and AICPA’s support for the Congress’ goals of fostering global unity and collegiality among professional accountants.”

In a joint statement on behalf of CGMA, Barry Melancon, CPA, CGMA, president and CEO of the AICPA, and Charles Tilley, FCMA, CGMA, chief executive of CIMA, said, “We are honored to sponsor the World Congress of Accountants next year and look forward to showcasing the unique perspective that CGMA designation holders bring to business. Professional accountants in business are on the front lines of the future, navigating the challenges of complexity and uncertainty to guide their organizations toward sustainable market opportunity. We believe our growing community of CGMA designation holders have the skill set of the future.”

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 172 members and associates in 129 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

About CNDCEC
CNDCEC represents the accountancy profession in Italy. It is a public entity regulated by law, under the supervision of the Ministry of Justice. CNDCEC is one of the founding members of IFAC, FEE (Fédération des Experts Comptables Européens) as well as of other Regional and sectoral international Organizations. It has oversight powers over 140 local chapters.

The main fields of activity of the Italian accountancy profession are: accounting, taxation, auditing, corporate governance, management consulting, and insolvency.

About CIMA
The Chartered Institute of Management Accountants, founded in 1919, is the world’s leading and largest professional body of Management Accountants, with more than 203,000 members and students operating in 173 countries, working at the heart of business. CIMA members and students work in industry, commerce, the public sector and not-for-profit organizations.

About AICPA
The American Institute of Certified Public Accountants (AICPA) is the world’s largest association representing the accounting profession, with nearly 386,000 members in 128 countries and a 125-year heritage. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting.

About CGMA
The AICPA and CIMA launched the CGMA designation in January 2012 to elevate the profession of management accounting and establish global criteria for quality. The CGMA designation distinguishes accounting professionals who have achieved demanding levels of education and experience and provides organizations the consistency and confidence they need to operate across borders, around the world. There are more than 128,000 CGMA designation holders globally and they are helping shape 95 of the world’s top 100 brands. 

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Jörgen, in an IFAC News interview from last August when you became the first independent chair of the International Ethics Standards Board for Accountants [IESBA], you indicated that the board has a clear role to play in responding to the global financial crisis, specifically in terms of helping to restore the reputation of the profession. Since the crisis, regulators and other policy makers have been actively exploring ways to enhance audit quality, including measures to increase the transparency of the audit process and to further safeguard auditor independence. At the same time, we have continued to witness a number of high profile accounting frauds in some jurisdictions. Some have said that the global financial crisis has led to a crisis of confidence in the accountancy profession. How can the IESBA’s Code of Ethics for Professional Accountants [the Code] help to restore the reputation of the profession?

JH: While the profession has not received as much criticism as the rating agencies and banks in relation to the global financial crisis, the profession is certainly not viewed as favorably as it was five years ago and there is still much work to be done. What many people outside of IFAC’s membership may not know is that professional accountants are committed to abiding by strict ethical requirements—the Code presents an internationally robust and comprehensive set of rules and guidelines for professional accountants. However, some accountants may choose not to follow the rules, and therein lies the problem. A relatively small number of accountants commit fraud, but that’s all you hear about in the news, and they end up hurting not only those directly involved, but the reputation of the entire profession.

What can be done about that?

JH: By increasing awareness of the Code and continuing to develop credible, reasonable solutions, we hope that the general public will come to realize that professional accountants are committed to acting ethically and in the public interest, and that fraudulent accountants constitute a small minority.

In some jurisdictions, the ethical requirements in the Code have been written into laws and regulations. However, there are some other incentives to follow the Code, regardless of legal requirements. It is in the best interests of all professional accountants, as members of a highly regarded and trusted profession, to help maintain the reputation of the profession. There are always going to be pressures—from management or potential financial gain, for instance—to stretch or break the rules. The Code includes guidance for professional accountants on how to deal with those situations. We expect that they will choose to do the right thing. Another motivator for firms and individuals to self-enforce the Code is that abiding by the Code can help them improve the consistency of their services and meet the high expectations of clients and employers.

How can the Code help in this way?

JH: As a global set of standards, the Code establishes a recognized benchmark for consistent ethical behavior by professional accountants worldwide. Clients and employers are rightly entitled to expect that professional accountants will act with integrity and objectivity, exhibit appropriate competence, due care, and professional behavior, and abide by the duty of confidentiality in carrying out their roles and responsibilities. Ethics standards can help professional accountants understand and meet their clients’ and employers’ expectations and therefore better serve them.

Do you agree that some of the recent accounting scandals that made headline news such as Olympus in Japan and ERA Mining Machinery Ltd in China were caused by compromised ethics?

JH: First, I should say that I, of course, do not have all of the information surrounding the cases you mention. Much of the information comes from the media. However, even when the news sources are highly respected, they may get the facts wrong or give incomplete coverage of events. While it looks like poor ethics played a role, I think it would be oversimplifying what happened to say that those scandals were caused mainly by a failure of the professional accountants involved to comply with ethics standards. To fully identify the causes would require a deep understanding of the particular facts and circumstances and the complexities of what occurred. At the same time, there is no doubt that those cases have hurt the standing of the profession in many jurisdictions. But it is important to distinguish between legal and ethical issues. Scandals usually become headlines because of suspected illegal activity—but acting illegally is of course very unethical.

Do you believe that ethics is something that cannot be taught, that it is inherent to each individual?

JH: I think most people have a personal code of conduct that they follow and it’s probably determined by how they were brought up, the morals and beliefs that were instilled in them from a young age, etc. I feel that ethical conduct is part of a person’s moral upbringing, so yes, part of it is inherent.

However, codes and rules in general, help the individual to adhere to ethical principles by supporting their intent to act ethically and guiding them in applying general ethical principles with concrete examples. The IESBA Code sets out the fundamental principles, a conceptual framework, and specific prohibitions. All professional accountants must be aware of the parts of the Code or their member body’s Code that are relevant to their work, which will be of help to them when they are facing issues of an ethical nature.

Can you give us a brief update on what the IESBA has going on right now?

JH: We recently released final revised provisions in the Code that address conflicts of interest, breaches of a requirement of the Code, and the Code’s definition of the term “engagement team.” The changes will be effective in 2014.

These projects were closely followed by a number of stakeholders from the regulatory community, and I was pleased that we were able to effectively engage with them through different forums. I was also pleased that we were able to successfully coordinate with the International Auditing and Assurance Standards Board [IAASB] in finalizing our project on the definition of engagement team, as this project was closely linked to the IAASB’s project to revise its International Standard on Auditing 610, Using the Work of Internal Auditors.

In relation to our current agenda, we had our first deliberation at our last meeting regarding the significant comments to our Exposure Draft on responding to a suspected illegal act, our most important project. Certainly, there are a number of challenging issues that respondents have raised. We will work diligently, systematically, and thoroughly through all the responses as we determine a way forward. We also discussed a number of new projects and initiatives at our March meeting.

See more information on the March 2013 Meeting Page, which includes the meeting highlights and a podcast summary. 

More than 70 representatives from over 10 national organizations from former Soviet republics in Europe and Central Asia gathered today in London at a two-day conference convened jointly by the International Federation of Accountants (IFAC), International Auditing and Assurance Standards Board (IAASB), and International Accounting Standards Board (IASB). Titled Adoption and Implementation of International Standards in the Former Soviet Republics in Europe and Central Asia, the event serves as an excellent example of constructive cooperation in the development, adoption, and implementation of high-quality international standards, and in relation to the regulation of the profession.

The event, hosted by the Association of Chartered Certified Accountants (ACCA), brought together organizations with responsibilities relating to the adoption or implementation of International Standards on Auditing (ISAs), issued by the IAASB, and International Financial Reporting Standards (IFRS), issued by the IASB. IFAC members, who play a critical role in the implementation of international standards and the development of professional accountants, also provided updates on key projects relating to the IFAC Statements of Membership Obligations.

“Standard setters, regulators, users, and the profession have a shared objective of high-quality financial reporting and auditing in the public interest, and therefore each group has a role to play in achieving this objective,” said Dan Montgomery, deputy chair of the IAASB. “The interest and cooperation of the organizations represented demonstrate how important it is for the IAASB, IASB, and IFAC to act on opportunities to support global adoption and effective implementation of international standards.”

“High-quality financial reporting continues to be critical for investment and decision making,” said Ian Mackintosh, vice chair of the IASB. “This event highlights the continued commitment of those responsible for adopting IFRS, including IFRS for Small- and Medium-Sized Entities (SMEs), and provides a forum for international standard setters and national stakeholders to discuss matters of relevance to their jurisdiction and regulatory frameworks.”

The event included meetings with national professional accountancy organizations and the three organizing bodies regarding experiences with the application of IFRS, ISA adoption and implementation, and quality assurance requirements, as well as the status of initiatives to translate IFRS and ISAs on an ongoing basis. Discussions also provided feedback on methods of implementing IFRSs, the IFRS for SMEs, and the changing role of professional accountancy organizations.

Representatives from Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Ukraine, and Uzbekistan attended the event. Delegates included IFAC members and associates, professional accountancy organizations, national standard setters, ministries of finance, regulators and securities market authorities, national banks, and other key stakeholders.

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 172 members and associates in 129 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

About 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 IFAC.

About IASB
The IASB was established in 2001 and is the standard-setting body of the IFRS Foundation, an independent, private sector, not-for-profit organization. The IASB is committed to developing, in the public interest, a single set of high quality global accounting standards that provide high quality transparent and comparable information in general purpose financial statements. In pursuit of this objective the IASB conducts extensive public consultations and seeks the co-operation of international and national bodies around the world. The IASB has 16 full-time members drawn from 11 countries and a variety of professional backgrounds. Board members are appointed by and accountable to the Trustees of the IFRS Foundation, who are required to select the best available combination of technical expertise and diversity of international business and market experience. In their work the Trustees are accountable to a Monitoring Board of public authorities. For more information visit www.ifrs.org.