IFAC calls for accrual-based accounting for governments and the need for institutional reform in public sector financial management. (www.worldeconomics.com)

Presentation given at the inaugural Steering Committee meeting for MOSAIC (Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration) in Jaipur, India, co-hosted by the Institute of Chartered Accountants in India and the Institute of Cost Accountants in India.

Additional information on MOSAIC is available in the launch press release and signing ceremony materials.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, today released a revised version of Policy Position Paper 2, A Single Set of Auditing Standards: Audits Of Small- And Medium-Sized Entities.

“IFAC reaffirms its view that a single set of auditing standards that can be applied to all audits is in the public interest,” stated Ian Ball, chief executive officer of IFAC. “A key objective of financial reporting is to provide users with relevant and reliable information for decision making; a single set of standards gives users confidence that audits—whether small or large, simple or complex—have been performed to the same high standards.”

The use of International Standards on Auditing (ISAs) for audits of small- and medium-sized entities has again been brought into focus following the release of the European Commission’s proposed audit legislation late last year.

“The International Auditing and Assurance Standards Board (IAASB)’s ISAs are designed to be applied in a manner proportionate to the size and complexity of an entity,” continued Prof. Arnold Schilder, chairman of the IAASB. “IAASB is committed to addressing the needs of small- and medium-sized entities and small and medium practitioners.”

Policy Position Paper 2, A Single Set of Auditing Standards: Audits Of Small- And Medium-Sized Entities, was first issued by IFAC in 2008. The main revisions to the position paper include updated references to:

• the Clarified ISAs;
• other standards that the IAASB has issued and that are relevant to small and medium practitioners; and
• tools and guidance made available to practitioners by IFAC and the IAASB.

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 paper discusses the public interest considerations relevant to the application of International Standards of Auditing (ISAs), set by the International Auditing and Assurance Standards Board (IAASB), for audits of small- and medium-sized entities (SMEs). It highlights how IFAC and the IAASB take into account the needs and views of SMEs and small- and medium-sized accountancy practices (SMPs), as well as describing initiatives undertaken so that ISAs can be used cost-effectively for the financial statement audits of entities of all sizes.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, welcomes the Spanish translation of the Handbook of International Public Sector Accounting Pronouncements – 2011 Edition.

This Spanish translation was undertaken by faculty members from the Department of Accounting and Finance, Faculty of Economics and Business Administration, at the University of Zaragoza, Spain. It has been reviewed by an international committee consisting of public sector experts from Argentina, Chile, Mexico, Spain, and Uruguay.

“This Handbook provides a comprehensive set of accounting requirements and guidance developed specifically for preparers of public sector financial statements. Due to the increasing pace of adoption in Spain and Latin America of these standards, this Spanish language translation is especially welcome,” said Andreas Bergmann, Chairman of the International Public Sector Accounting Standards Board (IPSASB).

IFAC’s Chief Executive Officer Ian Ball stated, “Availability of this translation will facilitate and support the adoption and implementation of the International Public Sector Accounting Standards in Spanish-speaking countries. The current sovereign debt issues in many countries around the world makes clear that financial management and reporting reform in the public sector is sorely needed. This translation will help contribute to that reform, as well as to enhanced comparability, transparency, and accountability in the public sector globally.” 

IFAC is presenting a global seminar, The Sovereign Debt Crisis, A Matter of Urgency—from Lessons to Reform, March 19-20, 2012.  The Seminar will feature prestigious guest speakers that include: Vincenzo LaVia, Chief Financial Officer of the World Bank Group; Hon. David Walker, Founder and CEO of the Comeback America Initiative and Former United States Comptroller General; and Göran Persson, Former Prime Minister of Sweden.  The two-day seminar will include discussions on the role of IPSAS adoption and implementation, the success of  accrual accounting, the role of the finance professional in reform and convergence, the complexity of public interest reporting, and more. For more information please contact sdseminar@ifac.org.

A Spanish translation of IPSASB’s Study 14 - Transition to the Accrual Basis of Accounting: Guidance for Governments and Government Entities was also recently published.

Both projects were made possible with the assistance of the World Bank and contributions from the government of Spain through the Spanish Fund for Latin America and the Caribbean. These publications can be downloaded free of charge in PDF format from the IFAC website. They have not been published in print format. Reproduction, distribution or dissemination of these publications requires permission of IFAC. Contact permissions@ifac.org for further information. For an overview of translations of IFAC’s publications, please visit the IFAC Translations Database: www.ifac.org/about-ifac/translations-permissions/translations-database.

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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Over 40 participants representing 19 countries gathered in Dubai, United Arab Emirates, for IFAC’s Mentoring Insights – The Mentor Perspective workshop on February 17, 2012. The roundtable workshop brought together representatives from countries all over the world, including Australia, Canada, China, India, Kazakhstan, Nigeria, and the UK. Discussions centered around the drivers for undertaking mentoring; the areas in which support is most commonly sought; and the key success factors and challenges based on the experiences of those attending the event. The range of information gathered will be used to inform the PAO Development Committee Mentoring Program, and in particular the mentoring toolkit.

Below are some of the presentations given by attendees. The extended agenda for the event, Mentoring: The Path to Sustainable Development, and the Event Summary are also available.

In recent years there has been an increased focus on mentoring activity between professional accountancy organizations (PAOs) as a valuable way of sharing knowledge and transferring sustainable expertise. Recognizing the value of these relationships, IFAC member bodies around the world are working together through twinning arrangements, donor-funded projects, and a wide range of collaborative partnerships to support each other and less-established PAOs.

This is the executive summary for Investor Demand for Environmental, Social, and Governance Disclosures:Implications for Professional Accountants in Business, which considers trends in investor demand for and use of environmental, social, and governance (ESG) information, and recommends how professional accountants can better support their organizations in responding to these demands, and ultimately improve the management and reporting of ESG performance.

Ian Ball, IFAC’s Chief Executive Officer, recently attended the L'Institut des Réviseurs d'Entreprises’ European Study Day conference in Brussels, Belgium. Mr. Ball delivered a presentation on Auditing in the Public Sector, which details the societal role of the audit, the need for adoption of accrual-based accounting by governments and public sector institutions, and IFAC’s commitment to global convergence of international standards