This summary provides an overview of Exposure Draft (ED) 54, Reporting Service Performance Information.

The International Ethics Standards Board for Accountants (IESBA, the Ethics Board) today released for public consultation its Proposed Strategy and Work Plan, 2014-2018. The proposed Strategy and Work Plan builds on the strong base established by the revised Code of Ethics for Professional Accountants (the Code) issued in July 2009, which clarified requirements for all professional accountants and significantly strengthened independence requirements for auditors.

The Consultation Paper was developed with input from a survey conducted earlier this year and other consultative activities. It lays out four proposed strategic themes to reflect the Ethics Board’s vision for the medium to longer term and to guide its work plan over the five-year period: maintaining a high-quality Code for application by professional accountants globally; promoting and facilitating the adoption and effective implementation of the Code; evolving the Code for continued relevance in a changing global environment; and increasing engagement and cooperation with key stakeholders.

“The board’s mandate is to develop high-quality ethics standards for the profession worldwide. Therefore, the board’s primary strategic priority should be to ensure that the Code continues to be a robust set of standards in the public interest,” said Jörgen Holmquist, chair of the Ethics Board. “The board also recognizes the strategic importance of advancing adoption and effective implementation of the Code to further contribute to public trust and confidence in the profession, and of broadening and deepening stakeholder engagement as an essential ingredient to the quality of its standards and their global acceptance. It is critical that the board hears from stakeholders as to whether the actions and activities it is proposing to prioritize appropriately support these objectives.”

The Consultation Paper includes four work streams that the Ethics Board agreed to pursue in early 2012 in response to a strategic review of external developments: a review of the Code provisions addressing long association of senior personnel with an audit client, and non-assurance services, both with respect to independence;  a review of the structure of the Code with a view to enhancing its usability and accessibility; and a review of Part C of the Code addressing professional accountants in business.

“The proposed Strategy and Work Plan reflects the Ethics Board’s goal of further reinforcing and promoting the Code as a leading set of ethics standards for the global profession,” noted IESBA Technical Director Ken Siong, adding, “Ultimately, this consultation aims to ensure that the board’s proposed strategic priorities are aligned with the needs of its stakeholders and that it is best utilizing and directing its resources to achieve its objectives.”

How to Comment
The Ethics Board invites all those with an interest in international ethics standards for the accountancy profession to respond to the Consultation Paper, which includes specific questions to guide responses. To access the Consultation Paper and submit a comment, please visit the Ethics Board website at www.ethicsboard.org. Comments are requested by February 28, 2014. The Ethics Board encourages national and regional professional accountancy organizations to share the Consultation Paper with and encourage participation from their members and employees.

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 179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The Framework is an opportunity for organizations to improve the quality of information provided about governance, strategy, prospects, and performance that reflects the commercial, social, and environmental contexts within which they operate. It enables them to engage with investors and others and focus on value creation over time. Ultimately, it will contribute to a more financially stable global economy and is a force for sustainability.

It will bring cohesion, technical rigor, and efficiency to a process that has grown organically and through market pressure over the last three years. Organizations that are able to adopt “integrated thinking” will benefit by breaking down internal silos and reducing duplication. Finance and accounting leaders need to act as change agents in their organizations and facilitate integrated thinking across the organization so that integrated reporting can be successful. These leaders have a crucial role in putting their organizations on a path of sustainable performance.

As a co-founder of the IIRC, IFAC has played a central role in the development of the IIRC and the Integrated Reporting Framework. IFAC President Warren Allen serves on the IIRC and former IFAC CEO Ian Ball is continuing his role as Working Group chair on IFAC’s behalf. IFAC has also provided staff support to the development of the IR Framework.

We encourage our member bodies and other stakeholders to communicate about the Integrated Reporting Framework and to get involved in its next stages, and we look forward to continuing to perform a constructive and central role in 2014 and beyond

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 179 members and associates in 130 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, today released the Guide to Review Engagements. The guide, developed in conjunction with CPA Canada, aims to help professional accountants in practice, especially those operating in small- and medium-sized practices (SMPs), in conducting review engagements in compliance with International Standard on Review Engagements (ISRE) 2400 (Revised), effective for periods ending on or after December 31.

“Many small- and medium-sized entities (SMEs) around the world are not required, or do not elect, to have an audit. They may, however, wish to enhance the credibility of, and confidence in, their unaudited financial statements by having some degree of independent assurance on them,” said SMP Committee Chair Giancarlo Attolini. “A review engagement, which offers limited assurance, may be the ideal solution. The guide can help practitioners prepare themselves to meet the potentially increasing demand in this area.”

To help practitioners develop a deeper understanding of ISRE 2400 (Revised), the guide includes illustrative examples alongside relevant extracts from the standard. It also includes practical points for practitioners’ consideration and tips on how to efficiently implement the standard. Checklists and forms that can be adapted to meet the particular requirements and circumstances of individual review engagements and jurisdictions are also included.

To assist IFAC member organizations, the SMP Committee has also updated its Companion Manual, a supplementary user guide to help organizations understand the various ways they can use, translate, and adapt the committee’s implementation guides.

To download the guide, visit SMP Publications & Resources. See also the article “Review Engagements for SMEs: Limited Assurance, Numerous Benefits,” which was developed to help IFAC members communicate the value of a review engagement and the availability of the guide to their members.

About the SMP Committee
The SMP Committee of the International Federation of Accountants (IFAC) 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 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. It is comprised of 179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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Highlights from the IESBA's December 4-6, 2013 meeting in New York, New York.

00:33 Overview 

1:03 Long Association 

2:50 Structure of the Code

6:14 Non-Compliance with Laws and Regulation

10:16 Future Strategy and Work Plan