This paper features interviews with 10 senior-level professional accountants in business on their experiences in mid-sized enterprises. The purpose of these interviews is to better understand the unique challenges that mid-sized enterprises confront and how professional accountants in business help address these challenges.

The International Federation of Accountants (IFAC) released its 2007 annual report today, highlighting IFAC's progress in achieving international convergence, its expanding role in supporting the profession in developing nations, and its initiatives to enhance the quality of work provided by professional accountants in the public and private sectors. In addition, the report describes IFAC's consultation with and outreach to regulators, standard setters, international development agencies, and other international groups in the development and implementation of its various public interest activities.

"The accomplishments of the past year are the result of a shared vision of IFAC, its members and associates, regional accountancy organizations, and others to strengthen the profession so it can effectively serve the public interest and contribute to economic growth and development worldwide," states IFAC President Fermín del Valle. "The report clearly demonstrates our commitment to transparency and building public trust."

A key feature of the report is the "Service Delivery" section, which describes IFAC services delivered against those planned in five key areas:

• Standards and guidance;
• Promoting quality;
• International collaboration;
• Representation of the accountancy profession in the public interest; and
• Information services.

"For the first time, the Service Delivery section of our annual report was reviewed by IFAC's independent auditor, and it received an unqualified assurance engagement opinion. This assurance statement reflects both our focus on services and our accountability to stakeholders,"states IFAC Chief Executive Officer Ian Ball. "It makes clear that we have delivered what we promised."

In addition to messages from IFAC's President and CEO, the report includes a message from Professor Stavros Thomadakis, Chair of the Public Interest Oversight Board, which oversees IFAC's Public Interest Activity Committees*.

The IFAC 2007 annual report can be downloaded from its website at http://www.ifac.org/About/2007AnnualReport.php. Print copies will be available in early-May and may be obtained by sending an email with your mailing address to pr@ifac.org.

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 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.

* The Public Interest Activity Committees are the International Auditing and Assurance Standards Board, the International Accounting Education Standards Board, the International Ethics Standards Board for Accountants, and the Compliance Advisory Panel, which oversees the IFAC Member Body Compliance Program.

The International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), seeks to fill a key technical manager position.

The IAASB is made up of volunteer members from around the world. The technical manager's key responsibilities will include conducting project research; interacting with national standard setters and IFAC members and associates from various countries; and developing, editing and overseeing publication of IAASB exposure drafts, standards and guidance. Other responsibilities include:

• Drafting project proposals and presenting them to the IAASB and, as appropriate, to task forces;
• Attending IAASB meetings as well as task force meetings, participating in discussions and recording discussions and decisions;
• Preparing IAASB meeting agendas and papers and developing articles and speeches; and
• Assisting the Chairman and Executive Director, Professional Standards in responding to technical and process issues raised by the IAASB Consultative Advisory Group and the Public Interest Oversight Board.*

The ideal candidate for this position will have a professionally recognized accounting degree or other relevant qualification. An excellent knowledge of issues relating to auditing, and experience in the standard-setting process is a plus, as is an understanding of the special considerations relating to the audit of multinational entities, small and medium enterprises or public sector entities.

It is anticipated that the successful applicant will work at IFAC's headquarters in New York City. (About 25 day to 35 days per year of international travel are required.)

A complete job description, including additional information concerning preferred background and experience, is available on the IFAC website. Interested candidates should submit their résumé (CV) by June 20, 2008 to the IFAC Human Resources Manager.

About the IAASB and IFAC
The objective of the IAASB, an independent standard-setting board within IFAC, is to serve the public interest by setting high-quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB, and, as one element of that oversight, establishes the criteria for its due process and working procedures.

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 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce.  In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

* Note to Editors
The Public Interest Oversight Board (PIOB) was formally established in February 2005 to oversee IFAC's auditing and assurance, ethics, and education standard-setting activities as well as the IFAC Member Body Compliance Program. The objective of the PIOB is to increase confidence of investors and others that such activities, including the setting of standards by the IAASB, are properly responsive to the public interest. PIOB members are nominated by international institutions and regulatory bodies.

Following the consideration and approval of due process by the Public Interest Oversight Board (PIOB), the International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the International Federation of Accountants (IFAC), has issued its 2008-2009 Strategic and Operational Plan. The IESBA's strategy focuses on new projects and activities it will undertake following the completion of its current projects on independence and on improving the clarity of the IFAC Code of Ethics for Professional Accountants.

In considering which new projects and activities should be undertaken, the IESBA conducted an extensive consultative process including a survey of interested parties, including practitioners in large and small firms, accountants in business, regulators, members bodies, ethical standard setters, and academics to obtain their views on matters that the IESBA should consider in the next few years to achieve its objective. The new projects that will be started during the period covered by the strategic plan are:

• Developing additional guidance regarding the ethical responsibilities of professional accountants who encounter fraud and illegal acts; and
• Expanding the existing guidance for professional accountants who face conflicts of interest including matters such as the types of conflicts and institutional mechanisms that can safeguard confidential information, and assistance on managing conflicts.

In addition, the IESBA will further its convergence initiatives through consultation with national standard setters, regulators and others to determine the basis on which the IFAC Code of Ethics can be established as a global benchmark.

"We listened very carefully to stakeholders as we developed our strategic plan," states Richard George, IESBA Chair. "In addition to feedback on our project priorities, we have heard the desire for an increased focus on promoting convergence initiatives, and this is reflected in our plan."

The objective of the IESBA is to serve the public interest by setting high quality ethical standards for professional accountants and by facilitating the convergence of international and national ethical standards, thereby enhancing the quality and consistency of services provided by professional accountants.

The IESBA's Strategic and Operational Plan 2008-2009 can be downloaded free-of-charge from the IFAC online bookstore (http://www.ifac.org/store). For more information of the work of the IESBA, visit its home page at http://www.ifac.org/ethics.

About the IESBA and IFAC
The IESBA develops ethical standards and guidance for use by professional accountants. It encourages member bodies of IFAC to adopt high standards of ethics for their members and promotes good ethical practices globally. The Public Interest Oversight Board oversees the activities of the IESBA and, as one element of that oversight, establishes its due process and working procedures.

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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international standards of ethics through the IESBA, IFAC, through its independent standard-setting boards, sets standards on auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.

Following the consideration and approval of due process by the Public Interest Oversight Board (PIOB), the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), today released International Standard on Auditing (ISA) 580 (Revised and Redrafted), Written Representations, and ISA 560 (Redrafted), Subsequent Events.

Written Representations
ISA 580 (Revised and Redrafted) contains new requirements designed to improve the auditors' practice in relation to the written statements that management provides to auditors to confirm certain matters or to support other audit evidence (referred to as "written representations"). During the development of the standard, the IAASB considered matters such as the reasons for requesting written representations, the value of the evidence that they provide, and from whom they should be requested.

The standard requires the auditor to request management to provide written representations on two fundamental matters:

• That it has fulfilled its responsibility for the preparation and presentation of the financial statements; and
• That it has provided the auditor with all relevant information and that all transactions have been recorded and are reflected in the financial statements.

The auditor may deem it appropriate to request other written representations during the course of the audit. Other ISAs also include requirements for the auditor to request certain written representations in respect of specific matters. In addition, ISA 580 (Revised and Redrafted) includes requirements for appropriate action by the auditor when written representations are not provided by management or are considered to be unreliable.

The ISA makes clear that, although written representations provide necessary audit evidence, they do not provide sufficient appropriate audit evidence on their own about any matters. Furthermore, the fact that management has provided written representations does not affect the nature or extent of other audit evidence that the auditor obtains about the fulfillment of management's responsibilities, or about specific assertions.

"The aim of the new requirements is to enhance the quality and appropriateness of written representations sought by the auditor by a focus on what is really necessary and, in particular, to deal with concerns that auditors may over-rely on representations at the expense of other evidence," explains John Kellas, IAASB Chairman.

Subsequent Events
ISA 560 (Redrafted) forms part of the IAASB's ambitious 18-month program to redraft existing standards following the clarity drafting conventions.[1] The standard, which deals with the auditor's responsibilities relating to subsequent events in an audit of financial statements, provides more clarity as to the requirements, but does not incorporate any substantive changes thereto. ISA 560 (Redrafted) will contribute to improving the consistency of its application by auditors around the world.

The complete set of clarified ISAs, including newly revised standards such as ISA 580 (Revised and Redrafted), is effective for audits of financial statements for periods beginning on or after December 15, 2009.

The ISAs can be downloaded free-of-charge from the IFAC online bookstore.

About the IAASB and IFAC
The objective of the IAASB is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes its due process and working procedures. 

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 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets international ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

[1]       Key elements of the clarity drafting conventions include: establishing an objective for the auditor with respect to the subject matter of each standard; clearly distinguishing requirements from guidance on their application; avoiding ambiguity through eliminating the present tense to describe actions by the auditor and using more imperative language where a requirement was intended; and other structural and drafting improvements to enhance the overall readability and understandability of the standards.

The International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board of the International Federation of Accountants (IFAC), has released a technical update to International Public Sector Accounting Standard (IPSAS) 4, The Effects of Changes in Foreign Exchange Rates. The update to IPSAS 4, which was issued as part of the IPSASB's global convergence program, reflects the latest amendments to the corresponding International Financial Reporting Standard (IFRS) issued by the International Accounting Standards Board.

"Converging IPSASs with IFRSs, where appropriate for the public sector, is one of the key strategic objectives of our standards development program," states Mike Hathorn, Chair of the IPSASB. "The revised IPSAS clarifies the requirements for public sector entities to convert foreign currency transactions and balances into their reporting currency."

The revised IPSAS 4 can be downloaded from the IFAC online bookstore at http://www.ifac.org/store. It will also be included in the 2008 edition of the Handbook of International Public Sector Accounting Pronouncements.

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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board of the International Federation of Accountants (IFAC), is seeking comments on a consultation paper entitled Accounting and Financial Reporting for Service Concession Arrangements.

The consultation paper identifies issues and provides proposals to be considered in the development of IPSASB requirements for accounting and financial reporting of service concession arrangements. Obtaining feedback from constituents is a key desired outcome of the paper. The consultation paper provides an overview of the various types of arrangements that are considered public-private partnerships, of which service concession arrangements are a subset. Also included is an analysis of existing authoritative guidance to assess whether it is sufficient to address the accounting and reporting implications for these arrangements. The paper concludes that additional guidance is needed for service concession arrangements in the public sector. 

Service concession arrangements are distinct from other public-private partnership arrangements in that the risks and benefits associated with constructing, owning and operating the underlying property, along with the control over the property, are shared to a greater degree by the public sector entity and private sector entity involved in the arrangement. The sharing of these aspects of the property, as well as the general complexity of these transactions, has often made the financial reporting of the property for the parties unclear.

This lack of specific guidance for service concession arrangements has caused divergence in how the property is reported, even occasionally resulting in the property not being reported as an asset by either the public sector or private sector entity. This has also provided public sector entities the opportunity to use these arrangements as a means to fulfill their infrastructure needs without recognizing the property and related financing in their financial statements, while potentially still meeting fiscal targets.

In November 2006, the International Accounting Standards Board's International Financial Reporting Interpretations Committee (IFRIC) issued IFRIC 12, Service Concession Arrangements, which is applicable only to the operators of these arrangements and not to the public sector grantor. This left many public sector grantors without international guidance on reporting on service concession arrangements. This consultation paper is the IPSASB's first step in considering options for developing guidance for them.

"The use of public-private partnership arrangements, which include service concession arrangements, by the public sector, as vehicles to build and improve infrastructure and other public facilities and provide the services associated with these structures, has continued to grow worldwide over recent years," states IPSASB Chair Mike Hathorn. "The lack of international guidance for grantors of service concession arrangements, combined with the growing public sector interest in these arrangements, made the need for IPSASB action on this issue critical."

How to Comment
Comments on the consultation paper are requested by August 1, 2008, and it may be viewed by going to http://www.ifac.org/EDs. Comments may be submitted by email to EDComments@ifac.org. They can also be faxed to the attention of the IPSASB Technical Director at +1 (416) 977-8585, or mailed to the IPSASB Technical Director at 277 Wellington Street West, 6th Floor, Toronto, Ontario M5V 3H2, Canada. All comments will be considered a matter of public record and will ultimately be 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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high quality performance by professional accountants in business.

To increase the accessibility of its standards and guidance to accountants worldwide, the International Federation of Accountants (IFAC) Board has approved a proposal to move to one quality translation of IFAC standards per language and to consult with IFAC members, associates and other interested parties on the process to achieve this. As a result, IFAC has released a consultation paper entitled Translation of IFAC Standards that outlines a proposed translation process. The new process is designed to facilitate the ability of member bodies and other qualified organizations to translate IFAC standards and to ensure the timeliness and quality of such translations.

"Our ultimate goal is to achieve one quality translation per language of all IFAC standards," emphasizes IFAC President Fermín del Valle. "If IFAC is to accomplish its mission of encouraging high quality practices by the world's accountants, we must make our standards available to the widest possible audience."

While the official working language of IFAC and its boards and committees is English, IFAC recognizes that it is crucial for practitioners, legislators, regulators, educators, students, and others who work in languages other than English to have access to current IFAC standards in their native language.

IFAC has already initiated the process of strengthening its translation processes. It has created a dedicated translations web page that, among other things, features a translation database based on information submitted by third parties. The database features a listing of IFAC publications that have been translated, along with the name of the translating body and links to a list of key terms, where it exists.

How to Comment
The consultation paper can be viewed at http://www.ifac.org/eds. Comments are requested by June 30, 2008 and may be submitted by email to translations@ifac.org. They can also be faxed to the attention of the Director, Quality Assurance and Member Body Relations at +1 (212) 286-9570, or mailed to IFAC, 545 Fifth Avenue, 14th Floor, New York, NY USA 10017. All comments will be considered a matter of public record and will ultimately be 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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.

For many governments and public sector entities, social benefit programs - such as social security, the provision of healthcare and unemployment benefits - comprise a highly significant part of their operations. The International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board within the International Federation of Accountants (IFAC), has launched a project on the long-term fiscal sustainability of these programs. The IPSASB is also seeking comments on proposed new requirements designed to improve consistency and transparency in the reporting of certain government social benefits and has issued a consultation paper on related issues, particularly liability recognition.

Long-Term Fiscal Sustainability Project
The IPSASB has undertaken a project on long-term fiscal sustainability and has released a project brief on which it welcomes comments. In developing its project on social benefits, the IPSASB has concluded that financial statements alone may not provide users with enough information to assess the long-term viability of social benefit programs. It has, therefore, undertaken this new project to develop a framework for reporting on the long-term fiscal sustainability of governmental programs and finances.

"While the IPSASB accepts that there is a level of uncertainty about fiscal sustainability information, we believe that additional information may be necessary for users of financial statements to have a more complete picture about the future viability of government social benefit programs. We have, therefore, decided to initiate an important project on a topic which has assumed increasing global significance in recent years," states Mike Hathorn, Chair of the IPSASB.

Disclosures for Social Benefits
To improve the consistency and transparency of reporting on social benefits by public sector entities, the IPSASB has released exposure draft (ED) 34, Social Benefits: Disclosure of Cash Transfers to Individuals or Households. ED 34 proposes disclosure requirements for amounts to be paid to beneficiaries as part of social programs, as well as information about those programs. ED 34 also includes requirements for determining the amounts to be disclosed. While this is an initial step in developing accounting for social benefits, the IPSASB believes the requirements in ED 34 will provide useful information on social benefit programs for users of public sector financial reports. ED 34 is also intended to bridge the gap between accrual based financial statements and the possibility of long-term fiscal sustainability reporting.

"Accounting for social benefits goes to the heart of government operations, and there is currently no private sector standard addressing it," notes Mr. Hathorn. "ED 34 provides a very small first step on the challenging road to developing a globally accepted approach."

Key Issues in Recognition and Measurement of Social Benefits
The IPSASB is also seeking comments on a consultation paper, entitled Social Benefits: Issues in Recognition and Measurement. The consultation paper sets out the IPSASB's strategy for developing approaches to address the issues involved in accounting for social benefits, including recognition and measurement. These issues include when liabilities for cash transfers and goods and services arise and, if so, whether these liabilities arise at an earlier point for contributory programs than for programs financed primarily through general taxation.

How to Comment
Comments on both ED 34 and the consultation paper are requested by July 15, 2008. Both documents may be viewed by going to http://www.ifac.org/EDs. Comments may be submitted by email to EDComments@ifac.org. They can also be faxed to the attention of the IPSASB Technical Director at +1 (416) 977-8585, or mailed to the IPSASB Technical Director at 277 Wellington Street West, 6th Floor, and Toronto, Ontario M5V 3H2, Canada. All comments will be considered a matter of public record and will ultimately be 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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), has released its 2007 annual report which highlights its work in enhancing the clarity of international standards and notes progress in achieving global convergence to international auditing standards. The report also details the IAASB's consultation and outreach program and offers a preview of its proposed future strategy.

A central part of the IAASB's work program over the past year has been the redrafting of its international standards to make them clearer and to promote their adoption and translation. During 2007, the IAASB approved seven final International Standards on Auditing (ISAs) and 21 exposure drafts as part of its Clarity project. It also announced that the effective date for all final redrafted ISAs will be for periods beginning on or after December 15, 2009. The IAASB plans to complete the redrafting of all ISAs by the end of 2008.

To further promote international convergence of standards, the IAASB engaged in extensive consultation and coordination activities in 2007 with international regulators and organizations, national auditing standard setters, and other stakeholders. The IAASB also continued to receive oversight from the Public Interest Oversight Board and obtained input to its work program and technical projects from the IAASB Consultative Advisory Group (CAG). A report from David Damant, Chairman of the IAASB CAG, is included in the annual report.

Throughout 2007, the IAASB actively consulted with stakeholders and users of its standards regarding the development of its proposed future technical strategy and work program. The annual report presents highlights of the proposed future strategy, which the IAASB is reviewing at its meeting in New York City this week.

The 2007 IAASB annual report can be downloaded from its website.

About the IAASB and IFAC
The objective of the IAASB is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes its due process and working procedures.

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 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets international ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.