Chairman, distinguished delegates, ladies and gentlemen. Thank you for your participation in this Africa Region Learning Workshop. I apologize that I cannot be with you personally. My wife was born in Africa and spent her childhood in Africa; I have visited Africa many times. It would have been a great pleasure for both of us to share time with you in Nairobi today.

Please accept my sincere good wishes, and the best wishes of the IFAC leadership, for a successful and productive conference.

The focus of the Learning Workshop – the role of the accountancy profession in contributing to economic growth and development – is of great importance to IFAC, because we want to know how we can best support the profession and developing nations in achieving one fundamental goal – creating a better world for all.

I believe that by working together, exchanging ideas and making a commitment to real change, we can achieve our goal.

Throughout this two-day event, you will discuss some of the most important issues to economic growth and stability on the African continent: promoting the highest ethical conduct; sustaining good corporate governance; strengthening public sector accounting and auditing; meeting the needs of growing small and medium practices; and establishing and developing professional accountancy bodies. I urge you to listen thoughtfully and to determine what you can do personally to make a difference here in Africa.

With representatives from both the public and private sectors, from more than 50 African nations gathered at this Learning Workshop, there is much to share and much to gain from your discussions. The ultimate goal is that this Learning Workshop will help to improve financial reporting, boost accountancy capacity and sustainability, and contribute to good governance throughout Africa.

I would like to thank the African Development Bank for sponsoring the Learning Workshop and the World Bank for co-sponsoring the event together with IFAC. I would also like to extend my appreciation to the groups that, together with IFAC, have organized the event: the Eastern Central and Southern African Federation of Accountants, the Federation Internationale des Experts-Comptables Francophones and the United Nations Conference on Trade and Development; and to the Institute of Certified Public Accountants of Kenya, who, together with ECSAFA, have been kind enough to host the Learning Workshop in Nairobi. I would especially like to acknowledge and thank Mr. Ndung’u Gathinji, Chief Executive Officer of ECSAFA, Chair of IFAC’s Developing Nations Committee and a member of the IFAC Board. Mr. Gathinji has served on the IFAC Board since 1999 and, during that time, he has helped to lead IFAC’s efforts to support the accountancy profession in developing countries. On behalf of the leadership of IFAC, I would like to thank him for his many years of service to the accountancy profession both in Africa and around the world.

It is through the dedication and commitment of volunteers like Mr. Gathinji and through the support of IFAC’s 163 member bodies in 120 countries, such as the Institute of Chartered Accountants of Kenya, and regional accountancy organizations, such as ECSAFA, that IFAC is able to achieve its mission, which I will state for you now:

To serve the public interest, IFAC will continue to strengthen the worldwide accountancy profession and contribute to the development of strong international economies by establishing and promoting adherence to high-quality professional standards, furthering the international convergence of such standards and speaking out on public interest issues where the profession's expertise is most relevant.

As stated in this mission, it is a primary goal of IFAC to strengthen the accountancy profession worldwide, in both developed and developing countries, and to contribute to the growth and development of strong economies. Because IFAC is a global organization, and because it is predicted that 95 percent of the world’s population growth will occur in developing nations, we have made strengthening the profession in these nations a key objective. Our position is this: we have a fundamental role and responsibility to play in fostering progress in the developing world, in eradicating poverty and in building prosperity. Establishing a sound and viable accountancy profession is a critical step in building a sound financial infrastructure and addressing these issues; it is a critical step in providing the people with access to food, healthcare, education, energy and water. And it is the reason that you are all here today, participating in this Learning Workshop.

IFAC’s goal is to have a member body, with an established accountancy profession, in every country around the globe. There is no doubt that this is a lofty goal, but as we look ahead and see that the growth of the world’s population will largely be in developing economies, I am more and more certain that this goal is one that we cannot compromise or forsake.

IFAC’s Developing Nations Committee is leading our efforts to achieve this goal. The committee is involved in extensive outreach to developing countries and has prepared new guidance, with the input of IFAC member bodies, which was released in December 2005. This new guidance, entitled Establishing and Developing a Professional Accountancy Body, covers the roles and responsibilities of a professional body, education and examination, and capacity development. The guide addresses a variety of situations, including where a formal accountancy profession does not exist in a country, where the profession exists and there is a desire to establish a professional accountancy body, and where an existing professional body requires further development and enhancement. It also includes suggested areas for priority action based on short-, medium- and long-term goals and projects. The guide is available electronically, along with all other IFAC standards and guidance, free-of-charge from the IFAC website: www.ifac.org.

Following on the release of this new guidance, the Developing Nations Committee is in the process of preparing a country-specific approach to supporting developing nations, helping both those countries where there is no established profession and those that have only begun to build the professional, financial and regulatory architecture necessary to support economic growth.

In addition, to further support and provide resources to developing countries, the committee is working closely with the IFAC Member Body Compliance Program, which supports the development of high quality auditing, accounting, ethical, educational and related quality assurance and disciplinary standards in IFAC member bodies throughout the world. The Member Body Compliance Program is intended to guide accounting institutes in the full spectrum of their professional responsibilities, to demonstrate a shared commitment to our profession’s values of integrity, transparency and expertise. I personally believe that the Compliance Program will play a major role in building credibility in the financial reporting process and in the accountancy profession in general.

The Member Body Compliance Program was established to help to support and encourage IFAC members and associates, throughout the world, in their best endeavors to meet our requirements for membership in IFAC. These include promoting and incorporating international standards issued by IFAC and the International Accounting Standards Board into national standards, and also implementing quality assurance and investigation and discipline programs to monitor compliance with applicable professional standards.

Promoting international convergence is fundamental to all IFAC standard-setting activities. We firmly believe that it is in the public interest to have a single set of international standards, of the highest quality, set in the public interest by an international expert body which transparently consults with, and recognizes the legitimate interests of, the international community. This is an important issue for both developed and developing countries, both here in Africa and throughout the world.

Within IFAC, there are four independent standard-setting boards that develop standards that meet these requirements:

• The International Auditing and Assurance Standards Board, which develops international standards on auditing, assurance and quality control;
• The International Ethics Standards Board for Accountants, which establishes IFAC’s international Code of Ethics for Professional Accountants;
• The International Accounting Education Standards Board, which sets standards and guidance on the pre-qualification and continuing professional development of all professional accountants; and
• The International Public Sector Accounting Standards Board, which sets International Public Sector Accounting Standards, designed to improve the transparency and accountability of public sector financial reporting.

Each of these boards is comprised of members representing a broad geographic and professional background and includes representatives of the public. The boards follow a rigorous due process, which includes exposing proposed standards for public comment and obtaining public interest input through consultative advisory groups.

In addition, in February 2005, a Public Interest Oversight Board, comprised of members nominated by international regulators and institutions, was established to oversee IFAC’s auditing and assurance, ethics and education standard setting and the IFAC Member Body Compliance Program. The PIOB was created through the collaborative efforts of the international financial regulatory community, working with IFAC, to ensure that its standards are set in a transparent manner that reflects the public interest. The PIOB has approved the due process and working procedures for the IAASB and the Education and Ethics Standards Boards. It has also approved the nominations to these boards and continues to provide public interest oversight.

An important area of consideration for IFAC’s standard-setting boards, especially the IAASB and the Ethics Standards Board, is addressing the needs of small and medium practices and small- and medium-sized entities. SMEs are vital to the economies of African nations and to the global economy as well. IFAC’s Small and Medium Practices Committee is increasingly active in representing the interests of SMPs to both the IAASB and the International Accounting Standards Board. The committee is providing input to the IASB’s project in the development of financial reporting standards for SMEs. It is also in the process of developing a guide to applying International Standards on Auditing for the audits of SMEs, and it is working to establish an electronic data exchange on SME and SMP issues.

Before closing, I would like to emphasize the values of the people that lead IFAC. All members of IFAC’s Board and IFAC committee chairs have taken an oath, to operate with integrity and in the public interest. We in IFAC do indeed put the international public interest before national interests and commercial gain. We work transparently and welcome your input, your suggestions and your questions at any time. And we are committed to the accountancy profession’s role in contributing to economic growth and stability, both in Africa and throughout our world.

There is no question that the accountancy profession has a unique, critical and practical role to play in building stronger and more stable economies both in Africa and around the globe. However, we cannot accomplish this alone. It is through partnership and cooperation among the public and private sectors, the accountancy profession, donor and development agencies and others that we can build strong financial architectures both in Africa and around the world – architectures that are supported by strong ethical standards, high professional standards and an unwavering commitment to act transparently and to be accountable.

Together, we can build a better world. Together, we can contribute to greater economic growth and stability. And together, we can build a better quality of life for the people of Africa and for the people of the world.

Thank you very much indeed for your attention.

Good morning ladies and gentlemen. It is a pleasure for me to speak to you on this second morning of the Africa Region Learning Workshop. It is an honor for me to have the opportunity to share with you today IFAC’s key priorities related to the development of the worldwide profession.  IFAC, as an international accountancy organization and standard-setter, has a number of key initiatives underway that focus on the growth of the accountancy profession and the needs of the profession in developing nations and transitioning economies. That is the focus of my discussion today; however, I would first like to thank those who have made this Workshop possible. 

The generous sponsorship of the African Development Bank, and our co-sponsor, the World Bank, whose commitment to Africa and to the objectives of this Learning Workshop are greatly appreciated.  ECSAFA, FIDEF and UNCTAD have also made important contributions and provided technical guidance as members of the Organizing Committee.

I would also like to say a special thank you to the staff of IFAC for their efforts in organizing this workshop, assisting with travel arrangements and support your work during the breakout sessions.  They are an excellent team and I am proud of both their professionalism and their friendship.

Most importantly, I would like to recognize the commitment of you, the participants, who represent 37 African countries. As professional accountants, representatives of government, and academia in Africa, your presence here at the Workshop demonstrates the support and commitment you have for development and improvement.

I now would like to turn to IFAC and its focus on development of the profession. With 20 African professional accountancy bodies as its members, IFAC believed it was critical to take an active role in this Learning Workshop. In addition to the secretariat support provided by IFAC staff in organizing the Workshop, IFAC’s Developing Nations Committee and the Compliance Advisory Panel also held meetings here earlier this week in order to participate in these two days.

If there is one thing that is clear to me when I think of Africa is its diversity. With its significant geographic size, its diverse cultures and traditions, and with 53 countries, Africa does face unique challenges. With such diversity come different needs and priorities, but at IFAC we believe that through our common goals we can work together to address key issues and needs that are fundamental for all professional accountancy bodies.

I would like to now share with you some of the specific activities is currently undertaking to meet the challenges facing professional accountancy bodies and practitioners.

The first important initiative was established to strengthen the profession and support implementation of standards – and this resulted in the formation of the Developing Nations Committee.  The Developing Nations Committee objectives include:

• Development and mentoring of existing and potential IFAC members
• Establishing strong working relationships with Donor Community
• Providing input to international standard setters on behalf of developing nations
• Producing guidance to assist in development of professional accountancy bodies

For an example of this type of guidance, the Developing Nations Committee launched new guidance November 2005 on Establishing and Developing a Professional Accountancy Body. The new guidance, available online through the IFAC website or on the CD-Rom included in your conference bag, is designed to assist national and regional accountancy bodies in building capacity around the world.

Based on feedback received in the past several months, we have also learned that it is considered a valuable tool for donor and development agencies in increasing the effectiveness and efficiency of development efforts related to the profession. This guide demonstrates our commitment to building the infrastructure necessary to contribute to economic growth and stability in emerging countries and to enhance performance by the profession globally.  I am also extremely pleased to announce that part of the funding for this event is being used to translate this guidance into French with the assistance of UNCTAD.

Another sign of IFAC’s commitment to Developing Nations is evidenced by a recent IFAC Board decision to establish a pilot program to subsidize the participation of developing nations in IFAC Boards and Committees.  $100,000 has been set aside to provide financial support to candidates from IFAC member bodies in developing nations to attend and participate in IFAC standard setting and other activities.

Another important IFAC initiative grew from IFAC’s recognition that - even with globalization and its undeniable impact on every country in the world - it is Small and Medium Enterprises (SMEs) that drive the growth of national economies.  They drive job growth, wealth creation and stability.  It is a fact in the United States, in the European Union and a fact in Africa.  And it is our profession’s Small and Medium Practitioners (SMPs) that provide professional services to these companies. 

The SMP Committee, formed in 2005, is a vigorous force within IFAC. Its members, from both developed and developing countries, seek to identify and address the most challenging issues facing SMEs and SMPs.

In July, the committee organized a forum in Hong Kong to discuss the challenges and opportunities facing SMEs and SMPs. Over 130 participants from 35 countries attended the conference, and their deliberations identified two significant challenges facing SMEs and SMPs: SMEs need financial reporting standards that are appropriate for their users’ needs and reduce the associated cost of compliance; and, in an increasingly globalized economy, SMPs should continue to explore new ways to support the growth and accountability of SMEs.

To help address these challenges, IFAC’s SMP Committee is taking a two-pronged approach to helping SMEs and SMPs converge and comply with international auditing and accounting standards – this approach includes helping to shape the form and content of international standards and providing practical assistance to SMPs and SMEs that have to use such standards.

For example, the SMPC is developing a guide to International Standards on Auditing for SMEs and a web-based knowledge resource for SMPs. Additionally, IFAC continues to respond to exposure drafts of international standard setters where an SMP or SME focus is needed.

In addition to the SMP and Developing Nations activities, are IFAC’s efforts to encourage quality in all that we do as a profession.  Quality, for each professional accountant, begins with education and so I will mention some of the work of our Education Board.

IFAC’s International Accounting Education Standards Board seeks to bring consistency to accountancy education, training and certification around the world. Our global environment does, I believe, demand this kind of consistency. How else can we assure the public that a professional accountant practicing in the United Kingdom or France is as qualified as one practicing in Kenya or Senegal?

The Education Board has issued the International Education Standards which address the vital topics of education prior to qualification, the minimum education requirements to become a member of the professional body, the final assessment of professional competence and capabilities, the specific competence requirements for auditors and continuing professional education.

Another area of focus for the Education Board is ethics education.  Last month, the Education Standards Board issued an information paper entitled Approaches to the Development and Maintenance of Professional Values, Ethics and Attitudes in Accounting Education Programs. The paper, which was the result of a wide-ranging research project into ethics education in the worldwide accountancy profession, is designed to stimulate discussion and debate on the subject of ethics education.

This information paper served as the basis for the Education Standards Board to develop a proposed International Education Practice Statement entitled Approaches to Developing and Maintaining Professional Values, Ethics and Attitudes. The proposed practice statement provides guidance to IFAC member bodies on how to achieve good practice in developing and maintaining professional values, ethics and attitudes in accordance with International Education Standards and suggests that member bodies may adopt an approach to ethics education based on the IAESB’s Ethics Education Framework. In addition, since ethics education is a lifelong commitment that begins when an individual begins training to become an accountant, and continues throughout a professional accountant’s career, the proposed new practice statement also provides guidance for member bodies on ethics education through continuing professional development.

In addition to the information paper and the practice statement, the Education Standards Board is preparing a toolkit on ethics education to assist member bodies, academic institutions and others in instilling a strong ethical foundation in the accountants of tomorrow.

Underpinning all of these activities is IFAC’s Member Body Compliance Program.  IFAC has established a rigorous Member Body Compliance Program to provide clear quality benchmarks for professional accountancy bodies and to require the identification of required actions which all assist our members in continuously improving standards, quality control and support to members of profession.   Through this program, IFAC seeks to contribute to the quality of financial reporting and thus to building sound market economies by facilitating convergence to international standards. Indeed, making best endeavors to converge national and international standards is a requirement for IFAC member bodies as set out in IFAC’s Statements of Membership Obligations (SMOs). The SMOs, which also require member bodies to implement quality assurance and investigation and discipline programs, form the basis of IFAC’s Member Body Compliance Program.  These are the requirements for IFAC members and we are also prepared to take actions, and indeed have taken actions, to suspended or expel bodies that do not participate in the program or demonstrate persistent non compliance, I want to emphasize that the program is focused on encouragement and improvement and making progress.

Part 1 of the Compliance Program, a fact-based questionnaire to assess the regulatory and standard-setting frameworks in the home countries of each of IFAC’s members and associates, is now complete. This portion of the program provides information on the roles and responsibilities of IFAC members – which vary from jurisdiction to jurisdiction.  Responses from all active members and associates have been posted on the IFAC website.

Part 2, the SMO Self-Assessment Questionnaire, was launched last December and approximately 35 responses been published with more to follow during this year.  The responses from these questionnaires are important for several reasons: they provide a global snapshot of the accountancy profession from both a regulatory and standards perspective. Additionally, they can be used to help IFAC gauge where it needs to focus its efforts to support the development of the profession and to work to achieve convergence.

Lastly, but perhaps most importantly, the responses to the questionnaires will lead into Part 3 of the program – Development of Actions Plans.  Member bodies will be required to develop action plans to close any gaps between current practice and the SMO requirements.  These action plans will demonstrate the international accountancy profession’s willingness to be accountable for its actions to meet high standards, to deliver quality and to protect the public interest – all important responsibilities in the changing and complex environment in which we all work.

I now want to make a few comments about IFAC membership.  One of IFAC’s objectives is to have a high quality professional accountancy body in every country in the world.  As you can see from this map where countries without representation are indicated with light colors, we have important work to do in Central and South America, in Central Asia, in Southeast Asia.

And we have the most work to do in Africa – there are over 30 countries where the profession is not represented within IFAC.  This represents both an opportunity and a challenge.  This is not an easy task or one we can accomplish on our own.  We need the sustained efforts of governments, professional bodies, educational institutions and donor assistance to make this objective a reality.

There is good news – several African professional bodies are making good progress and are actively working on their application and related compliance questionnaire requirements. We hope to consider a number of applications from the African continent during 2007.  We look to the Developing Nations Committee, existing IFAC members and our regional accountancy bodies to mentor potential members.

I would like to emphasize that the IFAC membership requirements have been significantly strengthened in the past three years through the Member Body Compliance Program, which is overseen by the Public Interest Oversight Board for IFAC.  Generally, the application process can take between 6 to 9 months.  This includes preparation of the application and related compliance questionnaires, obtaining sponsorship from an IFAC member, having the application reviewed by staff, the Developing Nations Committee and the Compliance Advisory Panel – all this must take place before a recommendation is made to the IFAC Board and Council in November each year. The staff and the CAP have made a policy decision that only those applications submitted by May 31 each year will be considered for recommendation to the Council in November of that calendar year. We therefore strongly suggest that applicants submit materials in January or February to permit adequate time for these review processes.  Normally, professional bodies will join IFAC as Associates with an agreed action plan based on our Statements of Membership Obligations.  Associates are expected to demonstrate clear progress on these action plans and would generally be considered for full membership during a period of one to three years based on progress on the action plan.

We also recognize that there are countries where the profession is not appropriately organized, or where the profession does not yet really exist.  We are committed, through our Developing Nations Committee, to support the capacity building needed in these countries and to eventually mentor them through the membership process at the appropriate time.

Later this morning you will hear from Honorable Henry Obwocha on the Role of Government.  I just want to mention here that IFAC clearly recognizes the vital role the profession has to play in the public sector.  In Africa, as in many countries, the public sector accounts for more than 50% of annual GDP and therefore public sector accountability and transparency is an important priority.  IFAC’s work to strengthen public sector financial reporting and financial management is accomplished largely through the International Public Sector Accounting Standards Board, known as the IPSASB.

The IPSASB develops International Public Sector Accounting Standards, which are designed to improve public sector financial management and accountability.

To enhance government’s credibility, both nationally and overseas, governments need to report their financial position and performance and their cash flows in a transparent and high quality manner. Such information is vital to the efficient operations of government and can assure the public that government resources are managed effectively.  These efforts should be supported by a sufficient number of professional accountants working in the public sector.

It is important to keep in mind that the need for high quality professionals and information from governments is as important as it is for business and industry. Without a financial structure that engenders confidence, a government’s infrastructures may crumble and with them, the ability to support its citizens.

So this is a brief description of some of the work that IFAC is doing to assist our members and all professional accountants and we welcome your participation and support. And, we also recognize that our work involves listening and learning and indeed that is the purpose of these two days. 

Let me conclude my remarks by reminding you of the vital role of the professional accountants in supporting economic growth.  The bedrock of our international commercial system is high quality finan­cial information: information based on ethics and integrity, on high quality international accounting and auditing standards and on the work and sound judgment of both internal and external professional accountants. Credible and reliable financial information is fundamental to investment. It builds investor confidence which, in turn, facilitates business development, contributes to job growth and leads to indi­vidual financial prosperity.

Fundamental to achieving this growth and prosperity is achieving our goal of having an IFAC member body in each country of the world – and to transform the map of Africa today with IFAC members into the map of Africa IFAC members of tomorrow.

Chairman, Presidents, fellow accountants, ladies and gentlemen. Good afternoon. It is a great pleasure to be here in Mangochi in the Warm Heart of Africa to address the 7^th Congress of the Eastern Central and Southern African Federation of Accountants. Thank you for your kind invitation

Africa has a special place in my heart, because my wife, Ann, was born in Africa and spent her childhood in Africa:  Egypt, Ethiopia, Kenya, Morocco and Nigeria.  I myself lived in South Africa on an international secondment with my firm and have visited eight other African countries.

The theme for this Congress – Africa’s response to globalization – is  especially relevant; it keeps us focused on understanding the challenges resulting from globalization, the opportunities presented to Africa for increased economic development and growth and the role of the accountancy profession in that process. My comments today are focused, therefore, not simply on IFAC’s response to globalization, but more specifically, on IFAC’s role in assisting African countries – and indeed all developing countries – in addressing the challenges of globalization in order to create a better world for their citizens.

I would like to thank the Society of Accountants in Malawi, its President, Mr Jimmy Lipunga, its Council and its Executive Director, Mr. Hennox Mazengera, for hosting this Congress and for inviting me to speak with you today.

In addition, I would like to recognize ECSAFA President, Mr. Butler Phirie, and ECSAFA Chief Executive, Mr. Ndung’u Gathinji, who is also a long-standing and highly respected member of the IFAC Board. Their dedication and service to ECSAFA and to our international profession as a whole is to be commended.

Regional accountancy organizations, such as ECSAFA, often serve as a vital link between international standard setters and regulators; and members of our profession. As exemplified by ECSAFA, they promote international standards; provide training, education and networking resources; and support development efforts. ECSAFA has been especially supportive of the IFAC Member Body Compliance Program, a landmark program initiated in 2004 to provide comprehensive and measurable information on the progress made by IFAC members and associates in adopting international standards. I will speak more about the Member Body Compliance Program in a few minutes.

ECSAFA has a long history of working closely with IFAC and for this I am very grateful. Since its founding in 1989, ECSAFA has worked at a regional level to support the development of a high quality accountancy profession and to promote convergence to international standards. Thank you.

It is through the commitment of the volunteer members of IFAC boards and committees, the support of our 163 member bodies in 120 countries, such as the Society of Accountants in Malawi, and of regional accountancy organizations, such as ECSAFA, that IFAC is able to achieve its mission, which I will state for you now:

To serve the public interest, IFAC will continue to strengthen the worldwide accountancy profession and contribute to the development of strong international economies by establishing and promoting adherence to high-quality professional standards, furthering the international convergence of such standards and speaking out on public interest issues where the profession's expertise is most relevant.

IFAC’s mission is to strengthen the accountancy profession in all sectors and all nations worldwide. To accomplish this, IFAC is focused on five key areas:

• Strengthening national accountancy bodies in countries around the world;
• Developing an internationally recognized single set of standards and promoting convergence to those standards;
• Focusing on ethics and ethical conduct;
• Supporting all sectors of the profession, including professional accountants in business, in government, and small and medium practices; and
• In all things we do, protecting the public interest.

IFAC has as a primary goal to strengthen the accountancy profession in both developed and developing countries worldwide and to contribute to the growth and development of strong economies. Because IFAC is a global organization, and because it is predicted that 95 percent of the world’s population growth will occur in developing nations, we have made strengthening the profession in these nations a key objective. Our position is this: we have a fundamental role and responsibility to play in fostering progress in the developing world, in eradicating poverty and in building prosperity. Establishing a sound and viable accountancy profession is a critical step in building a sound financial infrastructure and addressing these issues; it is a critical step in providing the people with access to food, healthcare, education, energy and water.

IFAC’s goal is to have a member body, with an established accountancy profession, in every country around the globe. This includes all African nations. There is no doubt that this is a lofty goal, but as we look ahead and see that the growth of the world’s population will largely be in developing economies, I am more and more certain that this goal is one that we cannot compromise or forsake. Without an established accountancy profession, I believe that we cannot succeed in helping African countries, or any others, in reaping the benefits of globalization.  IFAC is engaged in a number of initiatives to achieve this goal.

Next week, together with the Fédération Internationale des Experts-Comptables Francophones and the United Nations Conference on Trade and Development, IFAC and ECSAFA are organizing an Africa Region Learning Workshop, on the accountancy profession’s role in economic development, in Nairobi, Kenya. This Learning Workshop, which is sponsored by the African Development Bank and co-sponsored by the World Bank and IFAC, will bring together representatives of nearly all 53 African nations; donor agencies; national, regional and international accountancy bodies; the private sector; and other interested parties to discuss how to address the challenges and opportunities facing the accountancy profession in Africa. At this important conference, in which some of you here today will participate, we will discuss critical issues such as sustaining good corporate governance; strengthening public sector accounting and auditing; meeting the needs of growing small and medium practices; and developing and promoting ethical conduct. Most importantly, we will have the opportunity to build and to strengthen partnerships, in other words, determining how we can work together, effectively and efficiently, to achieve sustainable economic development in African countries. Globalization has, I believe, made this goal attainable.

IFAC’s Developing Nations Committee, which Mr. Gathinji has led excellently since its creation, is leading our efforts to represent the interests of developing nations and to seek resources and development assistance. The committee is involved in extensive outreach to developing countries and has prepared guidance entitled Establishing and Developing a Professional Accountancy Body. This publication covers the roles and responsibilities of a professional body, education and examination and capacity development. The guide addresses a variety of situations, including where a formal accountancy profession does not exist in a country, where the profession exists and there is a desire to establish a professional accountancy body and where an existing professional body requires further development and enhancement. It also includes suggested areas for priority action based on short-, medium- and long-term goals and projects. The guide is available electronically, along with all other IFAC standards and guidance, free-of-charge from the IFAC website: www.ifac.org.

The Developing Nations Committee is now in the process of preparing a country-specific approach to supporting developing nations, helping both those countries where there is no established profession and those that have only begun to build the professional, financial and regulatory architecture necessary to support economic growth.

In addition, further to support and provide resources to developing countries, the Developing Nations Committee works closely with the IFAC Member Body Compliance Program.

The Member Body Compliance Program was established to help support and encourage IFAC members and associates, throughout the world, in their best endeavors to meet the requirements for membership in IFAC. These include promoting and incorporating international standards issued by IFAC and by the International Accounting Standards Board into national standards; and implementing quality assurance and investigation and discipline programs to monitor compliance with applicable professional standards.

Part 1 of the Compliance Program, a fact-based questionnaire to assess the regulatory and standard-setting frameworks of IFAC member bodies, is now complete. Responses have been submitted by all active IFAC members and associates – including all 23 IFAC member bodies in Africa. These responses are now posted on the IFAC website and I encourage you to review them. I would like to thank ECSAFA very much indeed for its support of the Member Body Compliance Program.

Part 2, the SMO Self-Assessment Questionnaire, was launched last December and member and associate responses have begun to be posted on the IFAC website. The responses provide a valuable global snapshot of the accountancy profession from a standards perspective. Additionally, they help IFAC to gauge where it needs to focus its development work. Lastly, but perhaps most importantly, the responses to the questionnaires demonstrate the global profession’s willingness to be accountable for its actions to meet high standards, to deliver quality and to protect the public interest – all important responsibilities in this era of globalization and in this complex environment in which we all work.

Responses to the Compliance program will also assist IFAC in understanding where further assistance or development is needed. Action plans will be developed by IFAC members and associates, with assistance from the Compliance staff. During this phase of the program, the Compliance Advisory Panel, which oversees the Compliance Program, will provide feedback to the IFAC standard-setting boards and to the Developing Nations Committee to enable them to develop necessary tools, guidance and resources to assist members and associates in successfully completing the required actions.

The Member Body Compliance Program has as a primary objective to encourage and support member bodies in convergence to international standards set by IFAC’s independent standard-setting boards and by the International Accounting Standards Board.

It is important, I believe, to recognize that, as globalization takes hold, markets have the potential of becoming more integrated and developing countries have greater potential to increase investment and, thereby, to raise the quality of life of their citizens. To achieve these potentials, it is vital that the accountancy profession adheres to high quality standards. It is only through adherence to such standards that accountants can build confidence in the financial reporting process and create an investment climate of trust.

I would like to comment for just a few minutes on IFAC’s standard-setting activities and to emphasize that these activities are conducted by independent standard-setting boards with substantial public interest input.

The International Auditing and Assurance Standards Board (IAASB) sets international standards on auditing and assurance, quality control and related services. To ensure that its standards are clear and understandable the world over, the IAASB has undertaken a significant project to improve the clarity and structure of its standards. Beginning in October 2005, it issued four exposure drafts of proposed standards re-drafted using its new drafting style. It plans to have an aggressive timetable for updating all its standards in this new clarity style. The new style was developed based on input it received at an international Clarity forum last year and through responses to its 2004 Proposed Policy Statement and Consultation Paper on Clarity. We hope that this new style will not only make the standards more understandable, but also make them better capable of being translated and used in countries throughout the world.

In developing its international standards, the IAASB works with national auditing standard setters, from around the globe, that share the common goals of: promulgating high quality standards and reaching consensus at an early stage in their development. In July, the IAASB issued new guidance for national auditing standard setters that adopt its international standards with limited modifications. While not intended to be a definitive statement on convergence, the document provides guidance on the extent to which modifications to adopted international standards are permitted, while still allowing the national standard setter to assert that the national standards conform to the international standards. I urge all of you who hold a leadership position in an accountancy institute, or with a standard setter, to review this document, which is available in the IAASB homepage at www.ifac.org/IAASB.

The IAASB is also addressing critical issues in auditing and assurance. In March 2006, it issued a re-exposure draft designed to enhance the quality of audits of group financial statements, entitled Proposed International Standard on Auditing (ISA) 600 (Revised and Redrafted), The Audit of Group Financial Statements. Following earlier consultations, the IAASB has modified the proposals and reissued the exposure draft to address issues related to the extent to which the group auditor needs to be involved in the audits of components that are audited by other auditors, whether these auditors are independent of the group auditor or belong to the group auditor's national or international firm or network of firms.

Another area that the IAASB is addressing is related party transactions. The involvement of related parties, such as directors, owners, and management, in major corporate scandals has prompted the IAASB to review its current auditing standard on the subject. As a result of its review, in January the IAASB issued an exposure draft, proposed ISA 550 (Revised), Related Parties. The exposure draft proposed requirements for auditors regarding the audit of related party relationships and transactions. The proposed standard would place new emphasis on evaluating the effects of related party relationships and transactions on the financial statements, even in circumstances where the financial reporting framework does not establish related party accounting or disclosure requirements.

An essential element of credible financial information is a foundation in ethics and integrity. To build credibility in financial systems and to contribute to sound economic systems, we at IFAC promote our values of integrity, transparency and expertise to all professional accountants around the globe.

Here in Africa, there are many organizations that are promoting strong ethics and good governance as part of their work to eradicate poverty; to place the African countries, both individually and collectively, on a path of sustainable growth and development; and to halt the marginalization of Africa in the globalization process and enhance its full and beneficial integration into the global economy.

NEPAD, the New Partnership for Africa’s Development, is one organization that has made progress in achieving these goals. Indeed, one of the specific priorities of NEPAD is the promotion of democracy and good political, economic and corporate governance.

I had the sincere pleasure, in March 2005, of meeting the NEPAD Chairman, Mr. Reuel Khoza, at the IFAC Board meeting in Cape Town, South Africa. During that meeting, Mr. Khoza addressed the IFAC Board and emphasized the importance of sound corporate governance policies, good accounting and auditing and the need for professional accountants in business to be the conscience of businesses worldwide. He also urged IFAC to do more in these areas in order to eliminate corruption and eradicate poverty.

The need for individuals in government and business to operate with integrity and transparency is absolutely vital to creating the kind of institutions that operate efficiently and create stability. In turn, this brings investment and the opportunity to create prosperity among the public at large. Our profession should be at the forefront of this effort, leading and educating by example.

One way that we can lead is through the development and implementation of high standards of ethical conduct. The IFAC Code of Ethics for Professional Accountants, which is applicable to all accountants worldwide, including those in business and industry, public practice, the public sector and academia, reinforces our profession’s core values of integrity, transparency and expertise. The Code, which is developed by IFAC’s International Ethics Standards Board for Accountants, has been adopted by more than a dozen IFAC members here in Africa, including our member bodies in Botswana, Cameroon, Kenya, Lesotho, Malawi, Namibia, Swaziland, Tanzania, Uganda, Zambia, Zimbabwe and our two member bodies in South Africa. I would like to commend these institutes for their commitment to international convergence and to the adoption of high ethical standards.

IFAC’s Ethics Standards Board is currently engaged in ongoing work to ensure that all professional accountants – whether they work in public practice, business or government – have clear, relevant and high quality ethical guidance. The board has undertaken projects to address issues such as audit independence and whistle-blowing and is in the process of developing new guidance for professional accountants in government and in business. In addition, in July 2006, the Ethics Standards Board revised the Code of Ethics by updating the definition of a network firm. Network firms are required to be independent of an audit client of another firm within the network. The updated definition focuses on how networks operate and how they present themselves to third parties.

IFAC’s International Accounting Education Standards Board is focused on ethics and conduct, among other issues, and seeks to bring consistency to accountancy education, training and certification around the world. Our global environment does, I believe, demand this kind of consistency. How else can we assure the public that a professional accountant practicing in the United Kingdom is as qualified as one practicing in, say, Kenya?

Last month, the Education Standards Board issued an information paper entitled Approaches to the Development and Maintenance of Professional Values, Ethics and Attitudes in Accounting Education Programs. The paper, which was the result of a wide-ranging research project into ethics education in our worldwide accountancy profession, is designed to stimulate discussion and debate on the subject of ethics education.

This information paper served as the basis for the Education Standards Board to develop a proposed International Education Practice Statement, entitled Approaches to Developing and Maintaining Professional Values, Ethics and Attitudes. The proposed practice statement provides guidance to IFAC member bodies on how to achieve good practice in developing and maintaining professional values, ethics and attitudes in accordance with International Education Standards and suggests that member bodies may adopt an approach to ethics education based on the IAESB’s Ethics Education Framework. In addition, since ethics education is a lifelong commitment, that starts when an individual begins training to become an accountant, and continues throughout a professional accountant’s career, the proposed new practice statement also provides guidance for member bodies on ethics education through continuing professional development. Comments on this exposure draft are requested by December 15, 2006, and I encourage you to review it and to provide your comments.

In addition to the information paper and the practice statement, the Education Standards Board is preparing a toolkit on ethics education to assist member bodies, academic institutions and others in instilling a strong ethical foundation in the accountants of tomorrow.

The Education Standards Board is also addressing issues such as auditor competence and the information technology training needs of professional accountants. In June, the Board released a new International Education Standard (IES) 8, Competence Requirements for Audit Professionals, that requires all IFAC member bodies to ensure that professional accountants acquire and maintain the specific capabilities required to work as competent audit professionals. Under the new standard, IFAC member bodies will need to modify their policies and procedures to ensure that audit professionals meet the requirements of IES 8, which includes having advanced level knowledge of auditing and financial reporting; relevant information technology knowledge; and the professional skills and professional values, ethics and attitudes expected from audit professionals. The new standard also establishes requirements for the education and development programs of new audit professionals, including that they undertake a period of practical experience in audit and that they undergo an assessment of capabilities and competence.

In August, the Education Standards Board also issued an exposure draft of a proposed International Education Practice Statement, entitled Information Technology for Professional Accountants. Information technology is one of the critical areas for all of us in this globalized world. The proposed practice statement provides details of the knowledge and skills required of professional accountants in the IT environment to prepare them to use information technology, to work in the information technology environment and to rely on information technology.

Another important aspect of IFAC’s work is its program to strengthen public sector financial reporting and financial management. This is accomplished largely through the International Public Sector Accounting Standards Board, known as the IPSASB. The IPSASB develops International Public Sector Accounting Standards, which are designed to improve public sector financial management and accountability. It is currently addressing key issues for public sector accounting, including accounting for social policy obligations of governments, non-exchange revenue and budget reporting.

The IPSASB recently released a proposed standard on accounting for non-exchange revenue. Many public sector entities derive most of their revenue from non-exchange transactions – including taxes and transfers, such as grants, appropriations, donations and fines. The exposure draft proposes requirements for the recognition, measurement and disclosure of revenue from non-exchange transactions and contributions from owners and also includes definitions of: taxes, a taxable event, expenses paid through the tax system and tax expenditures.

A new information paper on the United States’ experience in making the transition to the accrual basis of accounting has also been released recently by the IPSASB. The paper identifies the benefits of this and highlights the challenges in developing and implementing an accrual based accounting system. We believe that this paper will be useful for governments considering implementation of the accrual basis.

The IPSASB is also currently developing proposed new International Public Sector Accounting Standards (IPSASs) on impairment of cash-generating assets and accounting for employee benefits – two important areas of public sector financial reporting.

An important IPSASB objective is facilitating convergence with International Financial Reporting Standards, upon which the IPSASs are based, and with statistical bases of financial reporting. Last year, the IPSASB issued exposure drafts further to converge its standards with International Financial Reporting Standards and with statistical reporting bases. The IPSASB is making great strides in its convergence efforts. An increasing number of entities worldwide, including the World Bank and NATO, are using IPSASs. In addition, in June of this year, the United Nations General Assembly approved a package of financial management reforms that called for UN agencies to use IPSASs for its financial statements.

To enhance government’s credibility, both nationally and overseas, governments need to report their financial position and performance and their cash flows in a transparent and high quality manner. Such information is vital to the efficient operation of government and can assure the public that government resources are managed effectively. It is important to keep in mind that the need for high quality information from governments is as important as it is for business and industry. Without a financial structure that engenders confidence, a government’s infrastructures may crumble and with them, its ability to support its citizens.

IFAC is committed to ensuring that all professional accountants, in every country of the world, both developed and developing, have the tools that they need to deliver high quality work. IFAC’s Professional Accountants in Business (PAIB) Committee is addressing the key issues facing accountants in business, including internal control, sustainability, and business planning. Last month, the committee released a new information paper, Internal Controls – A Review of Current Developments, that summarizes key internal control frameworks, highlights recent legislative and other initiatives, and discusses the role of internal control in enhancing corporate governance. The paper finds that current views on internal controls support a principles- and market-based approach in which organizations make a commitment to develop internal control systems particular to their own specific internal and external environments. It also identifies the importance of the tone at the top and the culture and the ethical framework throughout the organization to the effective implementation of an internal control system.

Also last month, the PAIB Committee released two new publications on a growing issue of concern in our globalized work – the environmental and social impact of the operations of businesses and organizations. These two publications explore the role of the professional accountant in business in sustainability reporting. The first paper, Why Sustainability Counts for Professional Accountants in Business, provides an overview of enterprise sustainability and sets out the business case for addressing sustainable development at the enterprise level in terms of the risks that sustainable development poses and the opportunities which it brings. It also seeks to identify the main sustainability related roles which the professional accountant in business might occupy: today, tomorrow or at some point in the future. The paper was published simultaneously with an information paper, entitled Professional Accountants in Business – At the Heart of Sustainability, in which high profile professional accountants in business explain how sustainability issues affect them.

To support small- and medium-sized entities (SMEs) and their small and medium practice (SMP) advisors in developing business plans, in May the PAIB Committee released new guidance entitled Business Planning Guide: Practical Application for SMEs. The new guide includes information on how to develop a corporate values statement and to manage business risks. In addition, it describes how the business plan may serve as a performance tool on an ongoing basis and support a business in obtaining external funding.

SMPs and SMEs are an important part of our globalized world and a vital part of national and international economies around the world. SMPs and SMEs are particularly relevant to developing economies. Yet they often find it very difficult to obtain the financial and other resources necessary for them to grow. According to the United Nations Economic Commission for Africa’s Economic Report on Africa 2004: Unlocking Africa's Trade Potential in the Global Economy Overview, “Africa desperately needs to create national … small business institutions that coordinate comprehensive programs for SME support.”

Programs to support SME growth and development are essential, because SMEs are vital to the economies of African nations. In his March 2006 speech to an International Finance Corporate conference, the Hon. Henry Obwocha, Kenyan Minister for Planning and National Development, who will be a featured speaker at the Africa Region Learning Workshop next week, provided some illuminating statistics on the vital importance of SMEs to national economies. He pointed out that in South Africa, for example, SMEs account for 55 percent of all jobs. And in his home country of Kenya, SMEs employed 5.1 million people and accounted for about 18 percent of GDP in 2003.

Here in Malawi, you have recognized the importance of SMEs to national economies and answered the call to provide them with resources through the establishment in 2002 of the Malawi Poverty Reduction Strategy. The strategy is supporting the growth and development of SMEs by providing financial, information and development training, among other resources.

IFAC is also actively working to support SMPs and other professional accountants that provide services to SMEs. The IFAC SMP Committee, formed in 2005, is a vigorous force both within IFAC and in representing the interests of SMEs and SMPs to international standard setters. Its members, from both developed and developing countries, seek to identify and address the most challenging issues facing SMEs.

In July, the committee organized a forum in Hong Kong to discuss the challenges and opportunities facing SMEs and SMPs. Over 130 participants from 35 countries attended the conference and their deliberations identified two significant challenges facing SMEs and SMPs: SMEs need financial reporting standards that are appropriate for their users’ needs and reduce the associated cost of compliance; and, in an increasingly globalized economy, SMPs should continue to explore new ways to support the growth and accountability of SMEs.

To help to address these challenges, IFAC’s SMP Committee is taking a two-pronged approach to helping SMEs and SMPs converge and comply with international auditing and accounting standards, helping to shape the form and content of international standards and providing practical assistance to SMPs and SMEs that have to use them. It is developing a guide to International Standards on Auditing for SMEs and a web-based knowledge resource for SMPs. Additionally, IFAC continues to respond to exposure drafts of international standard setters where an SMP or SME focus is needed.

In addition to working with professional accountants in business and small and medium practices, IFAC has built and maintained a key partnership with the Forum of Firms, which represents over 20 global networks and associations of public accounting firms. The members of the Forum of Firms have committed to the use of ISAs and of the IFAC Code of Ethics for transnational audits. Additionally, these firms have committed to use the IAASB’s International Standard on Quality Control 1, which establishes a high quality standard for the quality control systems within the firms. This commitment, to IFAC standards and to the promotion of high quality and consistent performance, was reinforced in February 2006 with the approval by the IFAC Board of a new constitution for the Forum of Firms. The new constitution updates membership requirements to emphasize the firms’ commitment to audit in accordance with the IAASB’s International Standards on Auditing and all members of the Forum must show that they meet all the requirements to be deemed to be full members.

The Forum of Firms supports and actively participates in IFAC’s auditing, ethics and education standard-setting processes. The Forum also engages in dialogue with regulators and those that oversee standard setting. For instance, representatives of the Forum have attended and made presentations to meetings of the Public Interest Oversight Board, which oversees IFAC’s auditing and assurance, ethics and education standard setting and the IFAC Member Body Compliance Program. The PIOB was established in February 2005 through the collaborative efforts of the international financial regulatory community, working with IFAC, to ensure that its standards are set in a transparent manner that reflects the public interest. It is chaired by Professor Stavros Thomadakis, a former Chairman of the Hellenic Capital Market Commission, and is comprised of members nominated by international regulators and institutions. The PIOB has approved the due process and working procedures for the IAASB and the Education and Ethics standards boards. It has also approved the nominations to these boards and continues to provide public interest oversight. More information on the work of the PIOB is available on its website.

In summary, uncompromising individual values, strong institutional standards and appropriate oversight are all critical to the development of a trusted and reliable accountancy profession – one that is capable of and recognized for protecting the public interest and one that contributes to building an investment climate of trust. To leverage the opportunities made possible by globalization, the development of such a profession is a crucial first step.

To effectively support and sustain economic development and growth, however, a strong accountancy profession is not enough. We must promote sound governance by all business and governmental entities. We must promote high ethical standards by all those in the financial reporting supply chain. We must be willing to form new partnerships to seek regional and international cooperation in building the financial architectures necessary to achieve worldwide trust. And lastly, we must encourage the design of public policies that maximize the potential benefits from globalization and support human rights.

I truly believe that in this way, together, we can create greater economic stability here in Africa. We can, together, turn pessimism to optimism. We can, together, turn despair, where it exists, into hope. And we can, together, over time, give each and every African a better life.

Thank you very much indeed for your attention.

At its meeting last week in Toronto, Canada, the Board of the International Federation of Accountants (IFAC) approved increasing the involvement of developing nations in its activities by expanding the IFAC Developing Nations Committee and by providing financial support to qualified individuals from developing nations who would like to participate on IFAC boards and committees. It also gave further recognition to the role of its Professional Accountants in Business (PAIB) Committee in developing global guidance by clarifying its mission.

The Board also approved the following appointments, which are effective January 1, 2007:

• Edward Chow of Hong Kong as the Chair of the IFAC Professional Accountants in Business Committee;
• Mike Hathorn of the United Kingdom as Chair of the IFAC International Public Sector Accounting Standards Board; and
• Ignatius Sehoole of South Africa as Chair of the Developing Nations Committee.

In addition to taking these actions, the Board focused a part of its discussion on convergence to international standards. Guest speakers Paul Cherry, Chair, Accounting Standards Board, Canada, and Ron Salole, Vice President of Standards for the Canadian Institute of Chartered Accountants, addressed the challenges and successes they have faced in moving from national standards to international standards and the benefits that have been realized as a result of this transition. In addition, Sheila Fraser, Auditor General of Canada, discussed the ways in which the Canadian Government accounts to its electorate, the significance of international public sector financial reporting standards, and the need for the use of an international set of standards recognized by governments and legislative bodies.

"Canada's recognition of the importance of international standards was further exemplified by the Canadian government's recent donation of US $1 million to the International Public Sector Accounting Standards Board and the Canadian Institute of Chartered Accountants' (CICA) willingness to second staff to that Board," states IFAC President Graham Ward. "We are very grateful for this and other support provided by IFAC's member organizations."

About IFAC

The International Federation of Accountants (IFAC) is dedicated to serving the public interest, strengthening the worldwide accountancy profession, and contributing to the development of strong international economies. Its current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. The organization sets international standards of ethics, auditing and assurance, education and public sector accounting and develops guidance for professional accountants in business.

Distinguished guests, ladies and gentlemen, friends and colleagues, good afternoon. Before I begin I would just like to say what a pleasure it is for me to be asked by FEE and AMA (Mediterranean Association of Auditors) to present the activities and views of the IFAC Small and Medium Practices (SMP) Committee today. For the benefit of those not familiar with the SMP Committee a few words of introduction.

The SMP Committee started life as a Working Group of the IFAC Board in 2000. Under the chairmanship of my countryman Angelo Casas it quickly progressed to being a task force, then a permanent task force, and, in January of this year, a full standing committee of IFAC. On its promotion to being a committee, Sylvie Voghel took over the reins. Our vital statistics read as follows: 18 members from 17 countries, 6 from the EU; a full time technical manager; an annual forum; and an ambitious and expanding work program centered on inputting to standard-setting - accounting, education, ethics, but most especially audit - and providing practical support to SMPs.

Canada is showing its support for the work of the International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting body of the International Federation of Accountants (IFAC), in two significant ways: The Treasury Board of Canada is providing funding of US$200,000 per year for five years and the Canadian Institute of Chartered Accountants (CICA) has agreed to provide, at its expense, a dedicated professional to support the IPSASB. Beginning this month, some of the IPSASB's staff, including its new Technical Director, Stephenie Fox, will be located in an office in Toronto, Canada.

The IPSASB focuses on the accounting and financial reporting needs of national, regional and local governments, related governmental agencies, and the constituencies they serve through the development of high quality International Public Sector Accounting Standards. Canada's actions demonstrate the increasing recognition of the importance of these standards.

"These standards are the foundation for better, more transparent and more responsible financial reporting by government," states IFAC Chief Executive Ian Ball. "Citizens in all countries have a right to understand how the government manages the financial resources that have been entrusted to it. By addressing such issues as the application of accrual accounting to the public sector, or accounting for social policy obligations or for tax revenues, these standards help to enhance the accountability of governments."

"We very much appreciate the commitment of the Canadian Government and the CICA to the IPSASB. Together with our Canadian partners and others throughout the world, the IPSASB can continue to improve financial reporting in the public sector and thus contribute to better financial decision making and financial management by governments," states IFAC President Graham Ward, CBE, MA, FCA.

"The Canadian offer is significant in that it will strengthen the IPSASB's capacity to deal with its priorities on public sector specific issues, including public/private arrangements and a conceptual framework, as well as convergence with other standards," states Philippe Adhémar, IPSASB Chair. "An important IPSASB goal is to promote the acceptance and use of its standards worldwide, and significant progress has been made in this area. For example, the United Nations recently approved a resolution calling for its agencies to adopt the standards. The European Commission and Organisation for Economic Co-operation and Development have also adopted the standards, and the World Bank has indicated its support for their use by governmental entities."

"We are very pleased to have IPSASB based in Toronto. It is a huge vote of confidence in Canada's standard-setting abilities," says Kevin J. Dancey, FCA, CICA President and CEO. "It is through initiatives like this that the CA profession demonstrates its leadership and the increasingly important role it plays on the international stage in terms of establishing best practices and guidance for improved financial reporting."

For more information about the IPSASB and to download its standards and other guidance free-of-charge, visit its home page on the IFAC website at http://www.ifac.org/publicsector.

IFAC is the worldwide organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. Its current membership consists of approximately 160 professional accountancy bodies in 120 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 international standards of ethics, auditing and assurance, and education. It also issues guidance to encourage high-quality performance by professional accountants in business.

The General Assembly of the United Nations (UN) has approved a financial management reform program that calls for the adoption of International Public Sector Accounting Standards (IPSASs) by the UN. The adoption of IPSASs is viewed as critical to maintaining and enhancing the credibility, transparency, and authority of the financial processes and transactions of the United Nations.

"The reform program enables, for the first time, the UN and its many agencies to have a comprehensive and consistent view of their financial position and performance. This will, in turn, enable the UN to manage more effectively, and to be fully accountable for, the resources entrusted to it," states IFAC President Graham Ward.

IPSASs are developed by the International Public Sector Accounting Standards Board, an independent standard-setting body within the International Federation of Accountants (IFAC). The standards set out the requirements for financial reporting by governments and other public sector organizations. The standards may be downloaded from the IFAC website at http://www.ifac.org/store.

As a result of the UN's decision to use IPSASs, the UN will move from a system of modified accrual to full accrual, which provides a more comprehensive financial picture.

Chief Executive Ian Ball states: "Public sector entities, such as the United Nations, that have undertaken a financial management reform program incorporating full accrual financial reporting are better able to manage their finances, and demonstrate by their actions their commitment to transparency."

The President of the United Nations General Assembly, H.E. Mr. Jan Eliasson, issued a Statement on the Adoption of the Resolution on Management Reform in which he said: "...We have taken a step to make the Organization more efficient and effective. We have begun consolidating a culture of accountability, transparency and integrity in the Secretariat (of the UN)."

IFAC is the worldwide 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's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting public sector accounting standards through the IPSASB, IFAC, through its independent standard-setting boards, also sets international standards on ethics, auditing and assurance, and education. It also issues guidance to encourage high-quality performance by professional accountants in business.

Stephenie Fox, CA, has been named Technical Director for the International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board of the International Federation of Accountants (IFAC). Ms. Fox, who will be based in Toronto, Canada, will assume the position on September 1.

Ms. Fox has extensive experience in public sector accounting standard setting and in working with all levels of government, in addition to having worked with public accounting firms. She most recently served as a Senior Reviewer for the Canadian Public Accountability Board. Prior to this, she worked for over twelve years as a Principal of the Public Sector Accounting Standards Board of the Canadian Institute of Chartered Accountants. While in this position, she participated on the steering committee for the IPSASB's project on non-exchange revenue.

"Stephenie's technical expertise and strong communications and leadership skills will be of great assistance to the IPSASB as it continues its work of developing financial reporting standards for governments worldwide," states Ian Ball, IFAC Chief Executive. "In this way, she will play a key role in improving the quality of financial reporting and financial management of public sector entities."

Stephenie Fox takes over from Paul Sutcliffe who is retiring as full-time Technical Director. Mr. Sutcliffe will continue to work for the IPSASB on specific projects as a Senior Advisor on a part-time basis. The IPSASB focuses on the accounting and financial reporting needs of national, regional, and local governments, related governmental agencies, and the constituencies they serve. A primary goal of the IPSASB is to achieve convergence in financial reporting between different governments, with the private sector, and between financial reporting and economic statistics.

IFAC is the worldwide 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's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, 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.

Attention to the social, environmental and economic effects on business performance is increasing from investors, governments, customers, and society in general. As a result, professional accountants in business (PAIBs) are among those who are being called on to take a more active role in sustainable development. To help PAIBs better understand how they can advance, measure and report on sustainable development, the Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has published two new information papers on the topic.

The first information paper, Why Sustainability Counts for Professional Accountants in Business, provides an overview of enterprise sustainability and sets out the business case for addressing the risks and opportunities of sustainable development at the enterprise level. It also discusses the ways in which professional accountants in business, especially those working for organizations with significant environmental or social impacts, will be involved with the measurement, recording and interpretation of sustainability-related information.

Professional Accountants in Business - At the Heart of Sustainability?, the second paper, provides first-hand commentary from eleven senior professionals working in various enterprises around the world on the role of PAIBs and the challenges they face in promoting and implementing sustainable development strategies. The comments are based on interviews conducted by Mr. Robert Bruce, a leading accountancy journalist based in the United Kingdom. While recognizing that the role of PAIBs in sustainability will vary based on the organization employing them and the nature of their role, there was significant agreement that this was a field in which PAIBs should become more educated and more involved.

These two IFAC papers represent a significant international step in the education process. "Sustainability is an important topic that is moving up fast on the agendas of professional accountants in business," states Bill Connell, Chair of the PAIB Committee. "These information papers explain what is meant by sustainability, its importance to professional accountants in business, the roles they should play, and how they should operate within the management team." Mr. Connell added, "Professional accountancy bodies need to ensure that the topic is addressed in both the pre- and post-qualification of professional accountants."

The two information papers can be downloaded free-of-charge from the IFAC online bookstore at http://www.ifac.org/store. The PAIB Committee serves IFAC member bodies and the more than one million professional accountants worldwide who work in commerce, industry, the public sector, education, and the not-for-profit sector. Its aim is to enhance the profession by encouraging and facilitating the global development and exchange of knowledge and best practices.

IFAC is the worldwide 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's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. Through its Professional Accountants in Business Committee, IFAC also issues guidance to encourage high-quality performance by professional accountants in business.

In recent years, global guidance and regulations have focused on the development and strengthening of internal control systems as a means of minimizing business risk and protecting shareholder investments. A new publication, Internal Controls - A Review of Current Developments, released today by the International Federation of Accountants' (IFAC) Professional Accountants in Business (PAIB) Committee, summarizes key internal control frameworks, highlights recent legislative and other initiatives, and discusses the role of internal control in enhancing corporate governance.

"Professional accountants play an important role in supporting the internal control systems of their organizations. This new paper describes much of the current thinking on internal control from countries around the world and is the first step in the PAIB Committee's program to develop practical guidance on internal control," states PAIB Committee Chair Bill Connell.

The paper finds that current views on internal controls support a principles- and market-based approach in which organizations make a commitment to develop internal control systems particular to their own specific internal and external environments. It also identifies the importance of the tone at the top and the culture and ethical framework throughout the organization to the effective implementation of an internal control system.

This paper follows on the findings of the 2004 report, Enterprise Governance - Getting the Balance Right, jointly published by IFAC and the Chartered Institute of Management Accountants in the United Kingdom, which found that companies must balance conformance with rules and organizational performance. Internal Controls - A Review of Current Developments can be downloaded from the IFAC online bookstore at http://www.ifac.org/store.

The PAIB Committee serves IFAC member bodies and the more than one million professional accountants worldwide who work in commerce, industry, the public sector, education, and the not-for-profit sector. Its aim is to enhance the profession by encouraging and facilitating the global development and exchange of knowledge and best practices.

IFAC is the worldwide 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's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. Through its Professional Accountants in Business Committee, IFAC also issues guidance to encourage high-quality performance by professional accountants in business.