Objective

To revise Sections 220, Conflicts of Interest, and 310, Potential Conflicts, of the Code to establish more specific requirements and provide more comprehensive guidance to support professional accountants in public practice and professional accountants in business, respectively, in identifying, evaluating and managing conflicts of interest.

Objective

To reconsider the provisions in the Code that address an inadvertent violation of the Code.

Regulatory burdens and economic woes continue to top the list of challenges faced by small- and medium-sized accountancy practices (SMPs) and their clients, according to the fourth quarter SMP Quick Poll results released today by IFAC.

Burden of regulation and economic uncertainty were tied for the top challenge faced by practitioners’ SME clients, with nearly 30% of respondents choosing each. Difficulties accessing finance followed closely behind with 25%. Similarly, for accountants within small practices, keeping up with new standards and regulations (41%) ranked as the top challenge, followed by attracting and retaining clients (25%).

Commenting on the results, SMP Committee Chair Giancarlo Attolini said, “Once again, this poll has provided invaluable insights that help us and our member organizations better understand the concerns of SMPs and their small- and medium-sized entity (SME) clients globally, as well as identify significant trends in the SMP sector.”

As a whole, pessimism increased since the August-September 2011 poll was conducted, which may be due in part to the high European response rate in the fourth quarter and deepening debt crisis across the region. Overall, in the fourth quarter poll, only 29% reported that business was better in 2011 than 2010, while nearly 50% of those from North and South America said that business was better. Looking forward, over one-third of respondents expect an improvement in business performance in 2012 over 2011, while 44% expect no change, showing that respondents are slightly more optimistic about the year to come. When asked about the main driver of growth for their practice, revenue from new clients (38%) came out on top with nearly twice the number of responses as revenue from existing clients (20%).

See these and additional results broken down by size of practice and region in the IFAC SMP Quick Poll: 2011 Round-Up, which includes the fourth quarter poll results, as well as trending data from key questions that were asked in each of the four polls throughout 2011.

The fourth quarter poll received 2,441 responses and was conducted in seven languages from November 17 to December 19, 2011. IFAC wishes to thank those member bodies and regional organizations that translated and/or helped promote the poll to their members.

About the SMP Committee
The SMP Committee of the International Federation of Accountants represents the interests of professional accountants operating in small- and medium-sized practices (SMPs). The committee develops guidance and tools and works to ensure the needs of the SMPs are considered by standard setters, regulators, and policy makers. The committee also speaks out on behalf of SMPs to raise awareness of their role and value, especially in supporting SMEs, and the importance of the small business sector overall.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The International Public Sector Accounting Standards Board (IPSASB) today released for comment a consultation paper as part of its project to develop a conceptual framework for the general purpose financial reporting of public sector entities. The Conceptual Framework is the IPSASB’s key strategic objective from 2010 through 2012, and is of fundamental importance to the future of global public sector standard setting for at least the next 10 to 15 years.

The Consultation Paper, “Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Presentation in General Purpose Financial Reports” (CF-CP4), explores concepts applicable to the presentation of information in the general purpose financial reports of public sector entities. It is not limited to the financial statements.

The Consultation Paper describes what is meant by presentation of information, and explains that presentation covers both display and disclosure. It reviews an approach to presentation of information that involves: presentation objectives based on user needs; application of the qualitative characteristics to presentation decisions; and three presentation concepts. The three presentation concepts are: select information that meets user needs, satisfies the cost-benefit test, and is sufficiently timely; locate information in a way that meets user needs; and, organize information to make important relationships clear and to support comparability.

“The Conceptual Framework provides the set of principles that underpin the IPSASB’s standard-setting activities over the long-term,” explained IPSASB Chair Andreas Bergmann. “CF-CP4 breaks new ground by considering presentation from the broader perspective of financial reporting rather than adopting a narrow focus just on the financial statements. Given the central role that the Conceptual Framework will play in the IPSASB’s future standard-setting activities, I strongly urge all stakeholders to submit comments on this Consultation Paper."

How to Comment
To access the Consultation Paper and the At-A-Glance document, which provides a summary of the Consultation Paper, or to submit a comment, please visit the IPSASB website at www.ipsasb.org. Comments on the Consultation Paper are requested by May 31, 2012. The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of this consultation paper to their members and employees.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC. The IPSASB receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the United Nations and the governments of Canada, China, New Zealand, and Switzerland.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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IN THIS ISSUE:

1.         Spanish Translation Highlights
2.         Russian Translation Highlights
3.         Additional Highlights from Q3 and Q4 of 2011
4.         What to Watch for in Q1 and Q2 of 2012
5.         Revised Guides from IFAC’s Small and Medium Practices (SMP) Committee
6.         Translations and Permissions section of IFAC website
7.         Request for Translation Proposals
8.         Important Notes Regarding IFAC Translations: Adoption of Standards, Time Needed to Process Permission Requests, IAASB Handbook 2012

1. Spanish Translation Highlights

Pronouncements of the International Auditing and Assurance Standards Board (IAASB)

A single, Spanish translation of the International Standards on Auditing (ISAs) and International Standard on Quality Control (ISQC) 1 of the IAASB (the Clarity Standards)—acceptable in Spain and throughout Spanish-speaking Latin America—was published in Spain in September 2011 and will be published in Latin America on approximately February 15, 2012.

This great achievement is the result of a project coordinated by IFAC and involving the joint Translating Bodies in Spain: Instituto de Censores Jurados de Cuentas de España (ICJCE) (IFAC member body) in cooperation with Instituto de Contabilidad y Auditoría de Cuentas (regulatory body).

The translated publication, the Handbook of International Standards on Auditing and Quality Control, includes an unofficial Table of Equivalencies showing differences between terminology used in Spain and that commonly used in Latin America. The translation has been reviewed by the Directorate General of Translations of the European Commission as well as by a Latin American Review Committee led by Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE). This Review Committee is comprised of representatives from IFAC member bodies in Bolivia, Chile, Colombia, Costa Rica, Mexico, Panama, Paraguay, and Uruguay, as well as other key stakeholders.

The translation was published in Spain by ICJCE and will be published in Latin America by FACPCE (Argentina). Contact ICJCE at auditoria@icjce.es or FACPCE at facpce@facpce.org.ar to purchase printed copies of the translated Handbook.

Pronouncements of the International Public Sector Accounting Standards Board (IPSASB)

IFAC and the World Bank have partnered to perform the Spanish translation of the IPSASB’s 2011 Handbook of International Public Sector Accounting Pronouncements. The translation is being performed by a translating team at the University of Zaragoza, Spain, and reviewed by a multi-jurisdictional review committee with members representing Argentina, Chile, Mexico, Spain, and Uruguay. This Spanish-language translation is funded by the contribution of the government of Spain through the Spanish Fund for Latin America and the Caribbean.

The translation and review were completed in Q4 2011, and the translation is expected to be published on the IFAC website in Q1 2012. A separate Spanish translation of IPSASB’s Study 14, Transition to the Accrual Basis of Accounting: Guidance for Governments and Government Entities, has also been performed with funding from the Spanish government and has been posted on the IFAC website.

Other Multi-jurisdictional Spanish Translation Activities

IFAC member bodies are working together on a number of other related projects. A cooperation agreement was recently signed between ICJCE, FACPCE, and Instituto Mexicano de Contadores Públicos (IMCP) to publish a single, Spanish translation of the Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants. The final translation is expected to be published on the IFAC website in early 2012.

A draft memorandum of understanding among these three IFAC member bodies has also been prepared with the objective of collaborating to achieve longer-term sustainable processes for a single, Spanish-language translation of the international standards and other IFAC publications.

2. Russian Translation Highlights

Over 60 representatives from 12 Commonwealth of Independent States (CIS) and Baltic countries met with leadership and staff of the IAASB, the International Accounting Standards Board (IASB), and IFAC in London to discuss the adoption and implementation of ISAs and International Financial Reporting Standards (IFRSs). The need for timely Russian-language translations and sustainable processes were prominent meeting discussion themes.

The successful event was attended by representatives from Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Latvia, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. Delegates included IFAC member bodies and associates, professional accountancy organizations, national standard setters, ministries of finance, regulators and securities market authorities, national banks, donor organizations, and other key stakeholders.

IFAC’s member body, the Russian Collegium of Auditors (RCA), is presently in the process of performing a Russian translation of the Clarity Standards. This project will involve a two-part review committee (Russia and other Russian-speaking countries) and the result is expected to be a single, Russian translation that will be widely acceptable in Russia and throughout the Russian-speaking region. In addition, the Chamber of Auditors of the Republic of Kazakhstan has carried out Russian-language translations of the International Standards on Review Engagements, International Standards on Assurance Engagements, and International Standards on Related Services, completing the set of IAASB pronouncements available in Russian.

The Russian translation of the 2010 Handbook of the Code of Ethics for Professional Accountants was performed by the Siberian Academy of Finance and Banking, reviewed by RCA, and published in Q4 2011.

3. Additional Highlights from Q3 and Q4 of 2011

In addition to the Spanish and Russian translations noted above, we are pleased to note that the French translation of the Guide to Quality Control for Small and Medium-Sized Practices, Third Edition was completed by CGA-Canada and published in Q4 2011.

During the period, numerous other translations were finalized and a number of new translations have been commenced. Please see the IFAC Translations Database for more details.

We welcome your feedback about the database and would especially appreciate being informed if any of the information contained therein is inaccurate or in need of updating.

4. What to Watch for in Q1 and Q2 of 2012

• Arabic, Russian, and Spanish translations of the Handbook of International Public Sector Accounting Pronouncements – 2011 Edition

• Arabic translations of:
      o Guide to Quality Control for Small and Medium-Sized Practices (QC Guide) - Third Edition 
      o Establishing and Developing a Professional Accountancy Body (PAODC Toolkit) - 2011 Edition

• Chinese translations of:
      o Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements - 2010 Edition
      o Handbook of the Code of Ethics for Professional Accountants - 2010 Edition
      o Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (ISA Guide) - Second Edition 
      o QC Guide - Second Edition  
      o Guide to Practice Management for Small- and Medium-Sized Practices (PM Guide)

• Spanish translations of:
      o The Code of Ethics for Professional Accountants (revised 2009)
      o ISA Guide - Third Edition 
      o QC Guide - Third Edition 
      o PM Guide - Second Edition

5. Revised Guides from IFAC’s Small and Medium Practices (SMP) Committee

During 2011, the SMP Committee revised the Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities, Guide to Quality Control for Small and Medium-Sized Practices, and Guide to Practice Management for Small- and Medium-Sized Practices. These updated editions include some enhanced content as well as editorial changes. Translating bodies wishing to update existing translations, or perform new translations, should contact permissions@ifac.org.

6. Translations and Permissions section of the IFAC website

The Translations and Permissions section of the IFAC website has been updated. The Frequently Asked Questions document for translations and permissions is now easier to locate and includes expanded content.

A new addition to the Publications and Resources section of the website is multi-language filter functionality to allow users to more easily locate translations of IFAC publications. We encourage readers to visit the website, and we welcome any comments you may have.

7. Request for Translation Proposals

IFAC would especially welcome translation proposals for French translations of the Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities, Third Edition and Guide to Practice Management for Small- and Medium-Sized Practices, Second Edition.

We would also welcome requests to translate the exposure drafts issued by IFAC’s independent standard-setting boards in order to encourage wider international participation in the standard-setting process.

8. Important Notes Regarding IFAC Translations: Adoption of Standards, Time Needed to Process Permission Requests, IAASB Handbook 2012

The pace of activities related to adoption and implementation of international standards is increasing around the world. Consequently, additional information has been included on the IFAC website in regard to procedures for requesting permission to reproduce, adapt, or translate the international standards, including relevant policy statements, permission request forms, and information about the time necessary to process and prepare related reproduction or translation agreements.

For the many translating bodies wishing to translate the upcoming 2012 edition of the IAASB Handbook, it is expected that this Handbook will be issued in April or May 2012, subsequent to which time IFAC would be pleased to receive translation permission requests and facilitate such translations. 

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, has opened nominations for the 2012 IFAC International Gold Service Award.

The IFAC International Gold Service Award was established in 2010 to recognize outstanding individual contributions to the accountancy profession, including protecting the public interest; exemplifying professional conduct and ethics; exceptional quality of work; and/or, contributions to a particular project or initiative. Candidates may or may not be members of the accountancy profession, and contributions may or may not be made through IFAC.

The recipients of the IFAC International Gold Service Award in 2011 were Sir David Tweedie (United Kingdom) and Professor Stephen Zeff (United States).The awards were presented on November 16, 2011, at IFAC’s annual Council Meeting in Berlin, Germany, by Göran Tidström, president of IFAC.

Nominations from IFAC member bodies must be submitted to the chief executive officer of IFAC by March 15, 2012. The nomination should consist of a completed nomination form, available on the IFAC website, and a cover letter. The cover letter should include reasons why the member body believes that the individual should receive an award and must be signed by the president and/or chief executive, or their equivalents, of the member body. If a member body wishes to include other supporting material, it should not exceed two pages. Nominations received in a format other than the stipulated form will not be considered.

In addition to nominations from IFAC member bodies, IFAC’s Nominating Committee will identify and recommend candidate(s) for this award. The Nominating Committee will review the nominations, make the necessary inquiries, and recommend candidate(s), if appropriate, to the IFAC Board, which will make the final selection(s), if any, during its meeting in June 2012. The chief executive officer of IFAC will notify the selected candidate(s) in writing, and the president of IFAC will present the award(s) at the annual IFAC Council Meeting, to be held November 14-15, 2012.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, has issued an announcement to alert its members, Forum of Firms, other international organizations and the general public of its Call for Nominations for IFAC Boards and Committees in 2013 .

For the first time, all vacancies on the public interest activity standard-setting boards* are open for nominations by the public. This change is due to IFAC’s determination to ensure a transparent approach to filling available positions, while also achieving gender, regional, and professional balance, and is in response to the Monitoring Group’s 2010 effectiveness review of the IFAC Reforms.

“The caliber of the volunteer members on our boards and committees is what makes these groups so effective. That is why seeking high-quality nominations is at the core of our nominations processes,” said IFAC President Göran Tidström. “We aim to attract a wide variety of high-quality nominations, to ensure that we have a rich pool from which to find the right candidate for each position. We thank our member bodies and the public in advance for the thoughtful and valuable nominations we anticipate receiving this year.”

Both the Call for Nominations and its companion guide, Developing a Nominations Strategy, are designed to help IFAC stakeholders identify the most qualified person for nomination to each available position on the boards and committees. These in-depth documents, located on the IFAC website, contain strategic and practical advice for nominating organizations and other individuals that allows them to make more informed decisions in their selections and decisions, and to understand the requirements of the various positions.

Each year, approximately one-third of the 155 positions on the boards and committees have openings, though, for some of those positions, serving members may be reappointed. In addition, this year, the position of the IFAC Deputy President is open for nominations from member bodies. For more information about the Nominating Committee, its due process, or for guidance in selecting the best candidate, please visit the IFAC website.

All applications should be submitted before March 15, 2012 electronically via IFAC’s nominations database; instructions are provided on page six of the Call for Nominations.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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* The public interest activity standard-setting boards include the International Accounting Education Standards Board, the International Auditing and Assurance Standards Board, and the International Ethics Standards Board for Accountants.