The 2011 IESBA Annual Report summarizes the progress made on the IESBA's 2011 Work Plan, including key projects on conflicts of interest, addressing a breach of a requirement of the Code, and responding to a suspected illegal act.

The International Ethics Standards Board for Accountants (IESBA) today released its 2011 Annual Report, Ethics for the Global Accounting Profession—Building on the Groundwork.

The report describes the IESBA’s commitment to developing high-quality international ethics standards for the global accountancy profession as presented in the Code of Ethics for Professional Accountants (the Code). It emphasizes the board’s long-term objective of facilitating the convergence of national and international ethics standards and continued work to support their consistent implementation.

The report summarizes the progress made on the IESBA's 2011 Work Plan, including key projects on conflicts of interest, addressing a breach of a requirement of the Code, and responding to a suspected illegal act. It also looks forward to 2012, outlining the board’s plans to add additional workstreams (summarized in a Staff Update) to its 2012 Work Plan in response to matters under consideration by the European Commission, US Public Company Accounting Oversight Board, and others.

“As significant changes to the Code took effect on January 1, 2011, we focused our 2011 outreach activities on helping those who had adopted the Code to understand these changes and implement the standards consistently,” said Ken Dakdduk, chair of the IESBA. “In issuing our first annual report, we aim to support our outreach activities by promoting transparency and communication with the board's stakeholders. The report highlights our achievements during 2011 and also the dynamic nature of the IESBA’s Work Plan. To best serve the public interest, the IESBA must continually review its activities and maintain the flexibility to respond to developments in the global regulatory and business communities.”

The report also includes a report from Richard Fleck, chair of the IESBA Consultative Advisory Group (CAG), which outlines the work of the CAG in providing input to the IESBA.

To access and download the 2011 IESBA Annual Report, visit www.ethicsboard.org.
 

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 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 a letter submitted this week, the International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, urged the G-20 Leaders at their June 2012 meeting in Mexico to focus on global solutions to global issues, to create sustainability and growth.

The letter, which is a follow-up to previous submissions in 2009, 2010, 2011, and earlier in 2012, recommends that the G-20 take action directed toward the priorities of the current Mexican Presidency to: achieve economic stabilization and structural reforms as foundations for growth and employment; strengthen the financial system and foster financial inclusion to promote economic growth; improve the international financial architecture in an interconnected world; and promote sustainable development, green growth, and the fight against climate change. The recommendations include:

• The adoption and implementation, across all jurisdictions, of:
  • International Financial Reporting Standards (IFRS);
  • International Standards on Auditing (ISAs); and
  • Auditor independence requirements set out in the Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants (IESBA).
• That the G-20 works to support strengthened resourcing and governance arrangements of international regulatory organizations (including standard setters) that have clearly defined expectations and responsibilities. In this regard, IFAC reiterates its support for shared private sector/public sector arrangements for international standard setting for financial reporting, auditing and assurance, ethics, and accounting education.
• That the G-20 supports initiatives leading to greater transparency in the management of public resources, including improving financial reporting practices by governments, developing an international framework of governance for public sector organizations, combating money laundering and terrorist financing, and ensuring that taxation obligations are properly assessed and collected according to the law.
• That the G-20 formally signals its support for the work being undertaken by the International Integrated Reporting Council (IIRC) with respect to developing a framework for integrated reporting. The IIRC, in which IFAC participates, is an important initiative and represents a collaboration among a broad cross-section of corporate, investment, accounting, securities, regulatory, and academic leaders.
• That governments and regulators adhere to principles of high-quality regulation, especially economic impact assessment, in implementing evidence-based regulatory reform. In particular, they should recognize that regulatory reforms may affect parts of the economy differently; for example, changes targeting large and complex organizations may have unintended consequences when applied to small- and medium-sized entities.
• That G-20 nations support initiatives aimed at strengthening the accountancy profession in developing and emerging countries. In fulfilling its mission, IFAC contributes to the development of strong professional accountancy organizations and high-quality practices by professional accountants in many ways, including through its relationships with the donor community.

“Today’s global issues require global solutions, and the G-20 is uniquely positioned to support global sustainability and growth,” said IFAC Chief Executive Officer Ian Ball. “The current problems being confronted by the global community require enhanced management of public resources, improved non-financial reporting, and more sustainable organizations. The accountancy profession is well-placed to assist in finding and implementing these solutions.”

The letter to the G-20 with the full recommendations is posted on the IFAC website.

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.

The International Federation of Accountants (IFAC) is pleased to present the following recommendations for consideration at the G-20 Leaders’ Summit on June 18-19, 2012 in Los Cabos, Mexico. These recommendations focus on actions aimed at promoting global sustainability and growth, and are directed towards several of the stated priorities of the Mexican presidency of the G-20.

The International Auditing and Assurance Standards Board (IAASB) today released new International Standard on Assurance Engagements (ISAE) 3410, Assurance Engagements on Greenhouse Gas (GHG) Statements. This new standard addresses an increasingly relevant global assurance service in support of reliable emissions reporting, whether for regulatory compliance purposes or undertaken on a voluntary basis to inform investors, consumers, and others. 

“Today, there is clear and growing demand for companies to disclose their environmental impacts and initiatives and to report detailed emissions information, often through GHG statements. As this demand increases, public confidence in assured GHG emissions information becomes more significant, if not essential,” said Prof. Arnold Schilder, IAASB chairman. “In promulgating this new standard, the IAASB seeks to enhance the consistency and quality of assurance engagements on GHG information, recognizing the importance to the public interest of decisions being made on the basis of that information.”

New ISAE 3410 addresses practitioners’ responsibilities in identifying, assessing, and responding to risks of material misstatement when engaged to report on GHG statements. It sets out requirements and guidance on the work effort and reporting responsibilities of practitioners for both reasonable and limited assurance engagements, as demand for both is increasingly evident in the marketplace. The ISAE is applicable to a broad range of situations, from emissions from electricity used at a single office, to emissions from complex physical or chemical processes at several facilities across a supply chain.  

”ISAE 3410 is a landmark standard in many respects,” noted James Gunn, IAASB technical director. “It responds to societal demands for standards that support quality in assurance services in areas other than financial reporting. It deals with engagements that largely need to be undertaken by a multidisciplinary team, where the assurance practitioner needs to integrate experts—in engineering or environmental science, for example—into various stages of the engagement. Notably, it also covers reporting for both reasonable and limited assurance engagements. It provides illustrative reports with features that distinguish for readers the difference between reasonable and limited assurance engagements, and shows how limited assurance reports may be further tailored to enhance users’ understanding of the assurance obtained.”

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 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. 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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This Strategy and Work Program sets the direction and priorities for the activities of the IAASB for the three-year period from January 2012 to December 2014, set within the stated objective and strategic initiatives of the IAASB’s Terms of Reference. It responds to significant developments in the environment in which audit, other assurance and related services are performed and in which standards for such services are set.

IFAC CEO Ian Ball is featured in FT.com's Alphaville discussing the merits of accrual-based accounting.