The IFAC Statements of Membership Obligations (SMOs) are a cornerstone of IFAC and its members’ commitment to a strong and sustainable global accountancy profession. These requirements provide the foundational framework that supports the profession in upholding high-quality international standards and best practices. These proposed revisions focus on key areas to reflect developments in international standards and reinforce the profession’s role in serving the public interest.
Including Conforming and Consequential Amendments to Other International Standards on Auditing
This revised standard responds to corporate failures that raised questions regarding auditors’ responsibilities by significantly enhancing the auditor’s work in evaluating management’s assessment of an entity’s ability to continue as a going concern. The revised standard will also increase consistency in auditing practices and strengthen transparency through communications and auditor reporting on matters related to going concern in a consistent manner.
The International Federation of Accountants (IFAC), hosted by the Japanese Institute of Certified Public Accountants (JICPA), convened the IFAC Professional Accountants in Business (PAIB) Advisory Group meeting in Tokyo, Japan this week. The meeting brought together leading finance professionals, industry experts, and global standard-setters to discuss the most pressing issues facing PAIBs, including chief financial officers and finance functions, boards and their audit committees, and their role in shaping the future of corporate governance, sustainability, and risk management.
As an integral part of IFAC’s commitment to supporting its member organizations and the global accountancy profession, this meeting reinforced the value that IFAC delivers to its members through thought leadership, knowledge sharing, and advocacy, helping IFAC shape the future of the profession, ensuring it remains globally connected, enabling strong and sustainable financial markets and economies.
The two-day event explored a range of critical topics, including:
The impact of global geopolitical and economic trends on business and finance professionals;
Advancing corporate and sustainability disclosures to meet investor expectations;
Strategies for enhancing integrated thinking and governance for business transformation and resilience;
Innovating in enterprise risk management to enhance decision-making and risk reporting; and
Growing the profession by attracting and retaining top talent.
Sessions featured distinguished speakers from international organizations, including the International Sustainability Standards Board (ISSB), the International Accounting Standards Board (IASB), and leading financial institutions and companies. The discussions provided valuable insights into how accountants can navigate an increasingly complex global environment and deliver long-term value for their organizations.
Lee White, Chief Executive Officer, IFAC, said: “Our member value focuses on supporting our members with contemporary resources, tools and insights. Our members use these resources to help their members, professional accountants in business and the public sector navigate developments and best practices to shape the future of the profession and our contribution to society. The IFAC PAIB Advisory Group plays a vital role in leading and developing our work with the evolving global needs of professional accountants in business for stronger economic prosperity for all.”
Tetsuya Mogi, Chairman and President of JICPA, stated: “JICPA was honored to host this important meeting, which brought together global PAIB leaders to bring a united voice to the challenges and opportunities shaping the future of our profession. As the role of accountants in business continues to evolve, collaboration through IFAC’s advisory groups ensures that we can collectively enhance governance, reporting, and strategic decision-making to create a more sustainable and resilient economy.”
Sanjay Rughani, Chair of the IFAC PAIB Advisory Group, said: “This meeting provided an invaluable forum for PAIBs to collaborate, share insights, and drive meaningful change. Our global collaboration and collective voice provide insights on innovating sustainability, governance, and risk management practices to drive business transformation and accountability. As finance professionals, we must lead the way in fostering long-term value creation and resilience in the organizations we serve.”
The outcomes of this meeting will inform IFAC’s ongoing efforts to support PAIBs worldwide and strengthen the profession’s ability to respond to the mega trends reshaping global business priorities.
About IFAC
IFAC, by connecting and uniting its members, makes the accountancy profession truly global.
IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.
IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.
About JICPA
The Japanese Institute of Certified Public Accountants (JICPA) is the professional accounting body in Japan, committed to upholding the highest standards of professional excellence and ethics. JICPA plays a critical role in ensuring the integrity and transparency of financial reporting and corporate governance in Japan.
About IFAC’s PAIB Advisory Group
Formed in 1977, the PAIB Advisory Group is comprised of volunteers with experience and expertise in the world of business and the public sector, nominated by the professional accountancy organizations that make up IFAC’s membership.
By bringing these experts together, IFAC delivers thought leadership, fosters collaboration, and equips its member organizations with tools and strategies to support their members in navigating complex, evolving business landscapes.
Thank you to The World Bank for hosting the IPSASB®'s first meeting of the year from March 18 to 21 in Washington, D.C., USA.
We progressed several projects that will make our IPSAS® Standards, which are cornerstones of strong public financial management, easier to use and more effective.
Informed decision-making matters.
Reliable financial information supports sound policymaking, enabling governments to allocate resources effectively to achieve their goals.
Strengthening Linkages Between IPSAS Standards and the GFSM
We approved the Project Brief, Strengthening Linkages Between IPSAS Standards and the GFSM, and had an initial discussion on the illustrative examples proposed for the Exposure Draft. We will be updating the examples for our next meeting in June 2025. This project will help governments and public sector entities make the most of IPSAS-based information when preparing statistical data for decision-making and accountability.
Making Materiality Judgements – Limited Scope
We kicked off our project to enhance the clarity and consistent application of the definition of material with two approvals: We approved the Project Brief, Making Materiality Judgements, and a limited-scope Exposure Draft to enhance the consistency of materiality guidance across the IPSASB’s literature. The Exposure Draft is expected to be published in Q2 2025 with a 60-day consultation period.
Sustainability: Climate-related Disclosures
The consultation period for the draft of our inaugural sustainability reporting standard, IPSASB SRS ED 1, Climate-related Disclosures, closed last month with a record number of responses. The Board discussed the outreach efforts undertaken to obtain that feedback along with next steps, including plans to review the feedback to finalize the Climate-related Disclosures Standard.
Presentation of Financial Statements
To continue developing the IPSASB’s Consultation Paper and form our preliminary views, we considered the results of additional analysis on two challenging topics. This work has helped the Board refine its views on the presentation of revenue and expenses on the statement of financial performance and statement of changes in net assets/equity. The Board intends to finalize those views on the different presentation approaches at the next meeting.
Work Program Consultation
Discussions continued on the development of the work program consultation that will be issued later in 2025. This consultation will be used to gather feedback from stakeholders on which financial reporting, post implementation review and sustainability reporting projects the Board should take on next when resources become available.
IPSAS 33 – Limited Scope Update
We reviewed the responses to ED 91, Limited Scope Updates of First-time Adoption of Accrual Basis IPSAS and believe a government that uses IPSAS Standards is better equipped to make sound financial decisions transparently. Constituents strongly supported the reorganized structure and streamlined guidance to make the journey to implementation as easy as possible. We intend to approve a final pronouncement at our next meeting in June 2025.
Measurement – Application Phase
We reviewed responses to ED 90, Amendments to IPSAS as a Result of IPSAS 46, Measurement. Respondents supported including the current operational value measurement basis in IPSAS 12, Inventories, and IPSAS 21, Impairment of Non-Cash Generating Assets, its applicability to right-of-used assets when measured under the current value model in IPSAS 45, Property, Plant, and Equipment, and enhancing the current value disclosures across the IPSAS Standards. The IPSASB will continue its discussion of issues in June 2025.
IPSASB Application Group
We discussed the roll-out of the IPSASB Application Group and the group’s work plan for the remainder of the year. In addition, the IPSASB approved amendments to the financial instruments IPSAS Standards, including guidance on supplier finance arrangements, the classification and measurement of financial instruments, contracts referencing nature-dependent electricity, and other editorial changes. These amendments, as well as other improvements to be discussed later in the year, will be exposed for comment in the second half of 2025.
Post-Implementation Reviews
Our first post-implementation review will be on IPSAS 20, Related Party Disclosures. To help inform our next review, we decided to conduct a survey of national standards setters on which IPSAS Standards should be a priority for us based on which pronouncements have been modified before adoption, and/or have not been adopted at the local level.
Public Sector Standard Setters Forum
Save the date: September 7-9, 2025 in Lisbon, Portugal. Registration coming soon.
Meeting Videos
Recordings of the meetings will be available soon on our YouTube channel. Subscribe to receive a notification when they're uploaded.
Pathways to Accrual: Find resources helpful for planning and undertaking a transition from cash to accrual accounting including adopting and implementing IPSAS.
Implementing IPSAS: Download a package of training materials on IPSAS that can be tailored to the needs of training participants.
International Standard on Auditing for Audits of Financial Statements of Less Complex Entities
This guide provides an overview of the ISA for LCE's concepts, structure, and format. It offers step-by-step insights into each Part of the standard with examples and comparisons to ISAs, equipping practitioners with the tools to effectively implement the ISA for LCE.
IES 2, 3, and 4 have been revised to embed sustainability throughout aspiring professional accountants' training. These updates reinforce the accountancy profession’s role in supporting high-quality sustainability reporting and assurance while upholding integrity and professional quality.
The revisions to IES 6, Formal Assessment of Professional Competence, reflect global changes, modernizing and clarifying the standard to ensure its relevance and longevity.
The revisions to IES 6, Formal Assessment of Professional Competence, reflect global changes, modernizing and clarifying the standard to ensure its relevance and longevity. This fact sheet provides an overview of these changes.
As demand for sustainability-related disclosures increases globally, the accountancy profession must ensure that all professional accountants are able to meet these evolving expectations. IFAC has revised the International Education Standards to embed sustainability—spanning analysis, reporting, and assurance—across aspiring professional accountants’ training. This fact sheet provides an overview of the revisions to IES 2, 3, and 4 addressing initial professional development.
The Fast Future With IFAC is a conversational podcast series about small- and medium-sized practices (SMPs) adapting to the rapidly changing global economy.
Episode 12 features an interview on how SMPs can embrace technology.
Our guest, Marcel Vulpoi, is General Manager of Vulpoi & Toader Management, a Romanian firm that provides accounting and business consulting services.
Click below or visit IFAC's iTunes podcast channel to listen to this episode.
