Highlights from the IESBA's September 16-18, 2013 meeting in Sydney, Australia.

00:32 Overview

1:04 Part C of the Code (Professional Accountants in Business)

2:52 Suspected Illegal Acts

6:54 Long Association

9:44 Structure of the Code

As part of the continuing effort to strengthen the accountancy profession globally, the Professional Accountancy Organization Global Development Report was released today. The report is an initiative of MOSAIC, the Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration.

The report was created to provide an assessment of professional accountancy organization (PAO) development at the global, regional, and national levels. Through its 10 key findings, the report establishes the success factors and challenges associated with building a strong, sustainable accountancy profession supported by an effective PAO.

“As an integral part of national financial infrastructures, PAOs can provide significant contributions to the financial, economic, and social development of nations,” said Deborah Williams, MOSAIC Steering Committee co-chair and chair of the IFAC PAO Development Committee. “Capacity-building efforts benefit the global economy since properly functioning PAOs support the production of high-quality financial information and contribute to public and private sector development, economic growth, and the aid-effectiveness agenda.”

The report’s key findings include the importance of undertaking PAO development comprehensively at the national level; strengthening legal and regulatory foundations; furthering implementation of international standards; and supporting internal strengthening of PAOs. The findings will provide direction for the MOSAIC Steering Committee in its future endeavors.

“This report will provide vital direction on where to focus efforts to increase PAO capacity and improve the quality of public and private sector accounting and financial management, goals that underpin MOSAIC,” said Jennifer Thompson, MOSAIC Steering Committee co-chair and chief financial management officer at the World Bank. “It allows us to further the principles of aid effectiveness—embodied in the Paris Declaration, Accra Agenda for Action, and the Busan Partnership for Effective Development Cooperation—to contribute to economic growth and a reduction in poverty.”

MOSAIC is a historic Memorandum of Understanding that sets out the basis for improving cooperation and collaboration between IFAC, international donors, and the international development community. With 13 signatories, it provides the foundation for an aligned approach to increase the capacity of PAOs and improve the quality of financial management systems in emerging economies. The PAO Global Development Report was co-financed by the African Development Bank, Asian Development Bank, Inter-American Development Bank, and World Bank.

About MOSAIC
MOSAIC (the Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration) sets out the basis for improving cooperation and collaboration between IFAC, international donors, and the international development community. MOSAIC’s objective is to increase the capacity of PAOs in partner countries to improve the quality of public and private sector accountancy and financial management with a view toward enhancing the effectiveness and efficiency of donor assistance, contributing to economic growth, and reducing poverty. IFAC, the global organization for the accountancy profession, serves as the Secretariat for MOSAIC.

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 173 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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The International Federation of Accountants (IFAC) today announced the availability of the 2013 editions of the handbooks from the International Auditing and Assurance Standards Board (IAASB), International Ethics Standards Board for Accountants (IESBA), and International Public Sector Accounting Standards Board (IPSASB).

2013 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements

The 2013 handbook contains two new standards issued by the IAASB since the 2012 edition: International Standard on Auditing (ISA) 610 (Revised 2013), Using the Work of Internal Auditors and International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to Review Financial Statements.

To download an electronic copy of the handbook for personal use, purchase print copies, or find information on recent developments and outstanding exposure drafts, visit the IAASB’s website at www.iaasb.org.

2013 Handbook of the Code of Ethics for Professional Accountants

In addition to the extant Code of Ethics for Professional Accountants (the Code), the 2013 edition includes three revised pronouncements related to breaches of a requirement of the Code; conflicts of interest; and the definition of “engagement team.” Changes to these pronouncements will take effect in 2014. See individual pronouncements for details.

To download an electronic copy of the handbook for personal use, purchase print copies, or find information on recent developments and outstanding exposure drafts, visit the IESBA’s website at www.ethicsboard.org. 

2013 Handbook of International Public Sector Accounting Pronouncements

The 2013 edition includes Chapters 1-4 of the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities, which were issued in January 2013. The 2013 handbook also includes an updated list of those International Public Sector Accounting Standards (IPSASs) that are applicable to annual financial statements covering periods beginning on or after January 1, 2013, and a list of those IPSASs that are applicable to annual financial statements covering periods beginning on or after January 1, 2014.

To download an electronic copy of the handbook for personal use, purchase print copies, or find information on recent developments and outstanding exposure drafts, visit the IPSASB’s website at www.ipsasb.org.

The standards and pronouncements in each of the handbooks were developed by the IAASB, IESBA, and IPSASB, respectively. The structures and processes that support the operations of these independent standard-setting boards, including publishing the handbooks, are facilitated by IFAC.

The International Accounting Education Standards Board has not issued a 2013 edition of its Handbook of International Education Pronouncements but plans to publish an updated version in 2014.

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 173 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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The International Ethics Standards Board for Accountants (IESBA, the Ethics Board) today released final changes to the definition of “those charged with governance” in its Code of Ethics for Professional Accountants (the Code).

The changes are intended to more closely align the definition of “those charged with governance” in the Code with that in the International Auditing and Assurance Standards Board (IAASB)’s International Standard on Auditing (ISA) 260, Communication with Those Charged with Governance, thereby eliminating any potential confusion. The Ethics Board does not expect any changes will be necessary to accounting firms’ systems and methodologies or common practice.

The changes clarify that a subgroup of those charged with governance of an entity, such as an audit committee, may assist the governing body in meeting its responsibilities. In those cases, if a professional accountant or firm communicates with such a subgroup, the Code requires the professional accountant or firm to determine whether communication with all of those charged with governance is also necessary so that they are adequately informed.

“The changes to the definition reflect the Ethics Board’s ongoing commitment to eliminate unnecessary differences with the IAASB’s standards, which serves to enhance our shared stakeholders’ understanding of our standards and guidance,” said Jörgen Holmquist, chair of the IESBA. “Furthermore, by clarifying the definition, the Ethics Board aims to promote more consistent application of the Code, which is critical to its mission to ultimately foster a consistent and high level of ethical behavior by professional accountants around the world.”

As with all revisions to the Code, the changes have been approved following confirmation by the Public Interest Oversight Board that due process in developing the changes was followed. The changes, effective on July 1, 2014, will be printed in the 2014 Handbook of the Code of Ethics for Professional Accountants. The 2013 Handbook is currently available to download or purchase.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA are facilitated by IFAC. Please visit www.ethicsboard.org for more 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. IFAC is comprised of 173 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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The changes to this pronouncement are intended to more closely align the definition of “those charged with governance” in the Code of Ethics for Professional Accountants with that in the International Auditing and Assurance Standards Board (IAASB)'s International Standard on Auditing (ISA) 260, Communication with Those Charged with Governance, thereby eliminating any potential confusion. The Ethics Board does not expect any changes will be necessary to accounting firms’ systems and methodologies or common practice.

This At-a-Glance is a summary of the 2014–2016 IAESB Strategy and Work Plan.

Prof. Arnold Schilder has been reappointed as chairman of the International Auditing and Assurance Standards Board (IAASB) for the period 2015–2017.

As chairman, Prof. Schilder will continue to lead the IAASB as it works to set high-quality international auditing, assurance, and related services standards. Since his appointment in 2009, he has played a key role in guiding the IAASB as it strives to enhance the quality and consistency of practice throughout the world. With 90 jurisdictions around the world already using or in the process of adopting or incorporating International Standards on Auditing (ISAs), his leadership will be critical in expanding this broadly based acceptance more widely.

Additionally, he will steer the board into the future as it works to enhance public confidence in financial reporting. Part of this agenda includes the IAASB’s leading edge proposals for significant changes to the content of the auditor’s report and considering the results of the implementation reviews of the ISAs. Also, the IAASB will closely monitor new developments, such as integrated reporting, and their implications for assurance and related services standards.

"It has been my great pleasure to chair the IAASB, and I am honored to have been reappointed to continue to lead the board,” said Prof. Schilder. “We are now preparing a global consultation for the IAASB’s Strategy and Work Program for 2015-2019. I look forward to the dialogue with many key stakeholders. As a result, I expect a challenging program in my third term to serve the public interest with high-quality standards, ongoing implementation support, and cooperation with regulators, other standard setters, and more.”

Prof. Schilder's appointment to a third three-year term as IAASB chairman begins on January 1, 2015. The Public Interest Oversight Board (PIOB) approved the appointment at its last meeting in Madrid, Spain.

From 1998 to 2008, Prof. Schilder was a member of the Managing Board of the Dutch Central Bank, responsible in particular for banking regulation and supervision. He served as the chairman of the Basel Committee on Banking Supervision's Accounting Task Force from 1999–2006, and from 2005–2008 as a member of the PIOB. During 1994 and 1995 he served also as president of Royal NIVRA (now Nederlandse Beroepsorganisatie van Accountants).

From 1972 to 1998 he worked with PricewaterhouseCoopers, first in the small- and medium-sized entities practice and since 1985 as an international audit partner. Prof. Schilder served as part-time professor of auditing at the Universities of Amsterdam and Maastricht from 1988 to 2009.

For more information about the work of the IAASB, visit its homepage at www.iaasb.org.

About the 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 173 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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