Posted below is the speech by IFAC President Fermín del Valle at the second Conference on Accounting and Accountability for Regional Economic Growth in Latin America and the Caribbean, which was given in Spanish. An English translation of the speech will be posted shortly.

Recognizing that professional accountants in business play an important role in helping their organizations deliver long-term value, the International Federation of Accountants (IFAC) Professional Accountants in Business (PAIB) Committee has released new guidance on the use of discounted cash flow analysis and net present value in evaluating investments. Entitled Project Appraisal Using Discounted Cash Flow, this guidance was released as part of the PAIB Committee's new program to develop International Good Practice Guidance on financial and management accounting topics.

Discounted cash flow analysis and estimating the net present value of cash flows involve fundamental principles of finance that support disciplined financial management in organizations. Professional accountants in business have a role in promoting and explaining the importance of these principles in their organizations, particularly where the connections between the application of financial principles and related financial theory are not easily understood or accepted.

"This new guidance will help professional accountants in business to promote the importance of generating long-term value in their organizations," states Edward Chow, Chair of the PAIB Committee. "Professional accountants have a significant role in ensuring that their organizations focus on decisions that maximize expected value, rather than on their short-term impact on reported earnings. Companies with good records of value creation generally have better shareholder and investor acceptance."

Final Preface to International Good Practice Guidance
Together with the guidance, the PAIB Committee has released the final Preface to IFAC's International Good Practice Guidance. The Preface sets out the scope, purpose, and due process of the committee's new International Good Practice Guidance, which cover management accounting, financial management, and broader topics in which professional accountants in business are engaged.

Project Appraisal Using Discounted Cash Flow and the Preface is available 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 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. Through its Professional Accountants in Business Committee, IFAC issues guidance to encourage high quality performance by professional accountants in business.

The International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the International Federation of Accountants (IFAC), has issued a re-exposure draft of proposals to strengthen two areas of the independence requirements contained in the IFAC Code of Ethics for Professional Accountants (the Code). The proposals re-exposed for comment relate to the provision of internal audit services to a public interest audit client and the safeguards that are required when the fees from a public interest audit client exceed 15 percent of the total fees of the firm. The re-exposure draft relates to matters that were exposed for comment in July 2007.

"The IESBA considered the comments it received related to independence and concluded that the proposals in the July 2007 exposure draft should be further strengthened in the areas of internal audit services and the relative size of fees from a single audit client," states Richard George, IESBA Chair. "We are seeking comments on the proposed revisions because of the significance of the changes made to address comments received."

The re-exposure draft contains two key proposals. The first would prohibit independent auditors from providing internal audit services related to internal controls, financial systems or financial statements to an audit client that is a public interest entity, thereby further strengthening their objectivity in carrying out audits. The second proposal requires that an annual pre- or post-issuance review be conducted by a professional accountant who is not a member of the firm when the revenues from one public interest entity client exceed 15 percent of total firm revenue for two consecutive years. The proposal provides an important safeguard against the threat to independence when a firm receives a significant portion of its revenues from a single client.

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.

Comments on the exposure draft are requested by August 31, 2008. The exposure draft 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 IESBA Senior Technical Manager at +1 (212) 286-9570 or mailed to IFAC, 545 Fifth Avenue, 14th Floor, New York, NY 10017, USA. All comments will be considered a matter of public record and will ultimately be posted on IFAC's website.

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 and jurisdictions, 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.

Mid-sized enterprises, compared with their small and large counterparts, face unique challenges in virtually all aspects of their businesses, including strategic management, organizational and financial structure, corporate governance, risk management and internal control, management accounting, and business reporting. Recognizing that professional accountants in business play an important role in each of these business areas, the Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has released a new publication entitled The Crucial Roles of Professional Accountants in Business in Mid-Sized Enterprises.

This information paper features interviews conducted by Eric Krell, an experienced financial journalist, with 10 senior-level professional accountants in business on their experiences in mid-sized enterprises. The interviews illustrate the critical roles that professional accountants in business play in identifying and addressing the unique challenges that mid-sized enterprises face.

"While the professional accountants in business who were interviewed for this paper are from different enterprises all over the world, they confront similar challenges and their solutions point in the same direction," states Edward Chow, Chair of the PAIB Committee. "The experiences and the lessons that they share can help professional accountants in business and others in addressing similar issues, as well as in driving performance and creating value for their organizations."

This interview-based information paper is part of a larger PAIB Committee project on mid-sized enterprises. It will serve as the basis for the development of principles-based good practice guidance on the typical challenges that mid-sized enterprises confront and how professional accountants in business can help in responding to those issues.

The paper, along with a range of other publications on topics of interest to professional accountants in business, can be downloaded from the IFAC online bookstore. 

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.

Good morning, ladies and gentlemen. It is a pleasure to be here with you for this meeting of the IOSCO Emerging Markets Committee.

IOSCO and IFAC share many common objectives, including promoting stable global capital markets, ensuring high quality financial reporting and auditing, and helping emerging nations to develop the infrastructures necessary to support sustainable long-term growth. 

Today, I would like to discuss how we can continue to collaborate to build a stronger, more stable global economy.

Let me start by pointing out that professional accountants, with their roles in all sectors of the marketplace, from auditing public companies, to working inside business and industry, in government, the not-for-profit sector, and academia, play a fundamental role in the economic growth of countries around the globe, including emerging markets. One significant area in which IFAC has worked to support professional accountants in fulfilling this role has been in promoting the adoption of a common set of high quality international accounting and auditing standards by all countries around the world.

Good morning, ladies and gentlemen. It is a pleasure to be here with you for this Forum for Strengthening the Accountancy Profession.

The city of Tunis is an excellent location for this gathering of international minds to discuss the challenges and opportunities facing the accountancy profession and where we see the profession going in the future. Just across Lake Tunis sits the ancient city of Carthage, one of the first international trade and business hubs in the world. Ever since that time, with succeeding Berber, Arab, Ottoman, and French cultures all leaving their mark, Tunisia has grown and thrived as a center of culture, international commerce and as a gateway between Africa, Europe and the Middle East.

Before I begin, I would like to briefly thank the Ordre des Experts Comptables de Tunisie and your President, Salah Dhibi, for hosting this event. I would also like to acknowledge and thank the two Tunisians who currently serve on IFAC boards and committees: Jelil Bouraoui, who serves as a member of the IFAC Board and as Deputy Chair of our Developing Nations Committee, and Hechmi Abdelwahed, who serves as a member of our Small and Medium Practices Committee.

It is through the service of volunteers like these gentlemen, and with the support and collaboration of IFAC's 157 member bodies and associates in 123 countries worldwide, and those of you gathered here today, that IFAC is able to fulfill its mission.

The core elements of IFAC's mission have remained constant throughout our 31-year history: serving the public interest, developing strong global economies, promoting international convergence, and serving as the voice for the global accountancy profession.

I believe that this mission will continue to guide our work in the future as we continue to build a strong and dynamic profession; one that is well-equipped to address the changing demands of the marketplace, to face ethical and technical challenges, to embrace new technologies and new types of reporting, and one that has the strength and the determination to continue to deliver quality.

The Public Interest Oversight Board has issued its third public report on its independent oversight of IFAC's public interest activities, including international standard setting for auditing, ethics and education, and the Member Body Compliance Program. The full report, which summarizes the PIOB's activities during the past year, is available on its website: www.ipiob.org.

The Public Interest Oversight Board has issued its third public report on its independent oversight of IFAC's public interest activities, including international standard setting for auditing, ethics and education, and the Member Body Compliance Program. The full report, which summarizes the PIOB's activities during the past year, is available on its website: www.ipiob.org.

Earlier this week in New York City, the International Federation of Accountants (IFAC) held a meeting with representatives of the emerging economies of Brazil, Russia, India and China (BRIC) to discuss their processes, achievements and challenges in adopting IFAC's international standards. More than 20 leaders of the accountancy profession, regulators and senior government officials from the BRIC countries attended this milestone event designed to help foster greater collaboration in achieving convergence to the global auditing, ethics and public sector accounting standards established by IFAC's independent standard-setting boards.

Government officials and leaders of the profession in all four countries indicated their commitment to adhering to IFAC standards and recognized that these standards play a vital role in ensuring that professional accountants and governments alike deliver high quality financial information. Each country presented an overview of their convergence plans and identified some of the challenges that they currently face, including capacity development, lengthy legislative processes, complex regulatory environments, and the need for translations of standards.

"We were heartened to learn that all of the participants were convinced that convergence is important for their countries and economies. This is indeed significant as these countries represent half of the world's population and are central to our global economy," states Fermín del Valle, IFAC President.

"We also realize that the road ahead for these countries, and many others in the emerging economies, is not an easy one. Their greatest challenge is moving from convergence to implementation, including remaining up to date on new and revised standards. IFAC is committed to helping these countries and others to meet this challenge," emphasizes Mr. del Valle.

The positive feedback from this meeting has prompted the group to consider setting up communications channels to continue the dialogue on technical and other convergence-related issues. IFAC will continue to support these initiatives and is encouraging other countries that share common interests or work in a shared region to work together on convergence and the implementation of international standards.

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 ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession, is seeking nominations for two public member positions on the International Auditing and Assurance Standards Board (IAASB) beginning in January 2009. Individuals, organizations, accountancy firms, and IFAC member bodies and associates may submit nominations for the public member positions by June 22, 2008.

Nominees for the public member positions must have an appropriate level of knowledge about the work of the IAASB, although they need not have a professional accountancy designation. Public members are expected to act in the public interest and must be seen to be independent of any special interests and seen to be acting to represent society as a whole.

The IAASB serves the public interest by setting, independently and under its own authority, high quality international auditing and assurance standards and facilitating convergence to those standards, thereby enhancing the quality and uniformity of practice worldwide and strengthening public confidence in financial reporting. More than 100 countries use or are in the process of adopting or incorporating the IAASB's International Standards on Auditing into their national auditing standards, or are using them as a basis for preparing national auditing standards.

Public members of the IAASB will participate in the development of assurance standards on green house gas emissions and reports on controls at third party service organizations, as well as the development of other new and amended international standards following the IAASB's rigorous due process. Some IAASB members will also be engaged in liaison activities with key regulatory and other organizations, including meetings, presentations and participation in forums and workshops.

For more information about general qualifications for nominees, their responsibilities, and the process for submitting nominations, see the Call for Nominations on IFAC's website.
 
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.

Thank you for inviting me to join this very distinguished panel.

Given that this is an audience not primarily made up of accountants, I thought it might be helpful if I spent just a few minutes explaining who the International Federation of Accountants is, and what we do. This will provide some context for the remarks that follow. 

First, IFAC is an organization of professional accountancy institutes. We have 14 members and associates in the Middle East, including two here in Jordan - the Jordanian Association of Certified Public Accountants and the Arab Society of Certified Accountants.  In total we have 157 members and associates spread across 123 countries, representing approximately 2 ½ million accountants. 

As to what IFAC does, a primary function of the organization is to set professional standards.  Most importantly we set, through our International Auditing and Assurance Standards Board, International Standards on Auditing (ISAs). We also establish a Code of Ethics for Professional Accountants, which is the basis for codes of ethics of our members. The other two areas in which we set standards are education (the International Education Standards) and public sector accounting, where we set International Public Sector Accounting Standards (IPSASs). The IPSASs are the equivalent of the International Accounting Standards Board's International Financial Reporting Standards, though the IPSASs apply to governmental organizations not companies. 

In addition, IFAC has activities that support its standard setting role.  In particular, we have a Small and Medium Practices Committee that provides input to the standard-setting bodies (and also to the International Accounting Standards Board) from the perspective of small- and medium-sized enterprises (SMEs) and small- and medium-sized accounting practices (SMP).  We believe it is critical that this perspective be reflected in our standard-setting processes. Also, we have a Developing Nations Committee which, similarly, seeks to ensure that our standard setting reflects the views and needs of developing and emerging economies.

I should note that in the post-Enron environment, IFAC made significant reforms to its standard-setting processes. These reforms could be characterized as moving from a self-regulatory model to a shared regulatory structure. A number of changes were made to our processes to ensure greater transparency but, most importantly, we established, along with the international regulatory community, an oversight structure that could ensure that our standard setting reflected the public interest. These reforms have now been in place for over three years and have done much to generate confidence in the standards set by the International Federation of Accountants.