This Handbook contains the complete International Public Sector Accounting Standards, published as of January 31, 2020. It also includes the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities.

The International Federation of Accountants (IFAC) today released the latest in its Exploring the IESBA Code educational series: Installment 8: Responding to Non-compliance with Laws and Regulations (NOCLAR) [for PAIBs].

The publication is part of a 12-month short series to help promote awareness of the provisions in the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code). Each installment focuses on a specific aspect of the Code using real-world situations in a manner that is relatable and practical. This NOCLAR installment is part 1 of 2 and is focused on explaining the actions that accountants in business, including senior professional such are directors, and officers are expected to take when they become aware of, or suspect a NOCLAR within their employing organizations. Part 2 will focus highlighting provisions that apply to auditors and other accountants in public practice in client service. Previous installments highlighted the Code’s five fundamental principles of ethics and conceptual framework, as well as more topic-specific requirements, such as independence and conflicts of interest.

“The Exploring the IESBA Code series is the result of a strong collaborative effort between the International Federation of Accountants and the International Ethics Standards Board for Accountants (IESBA),” said Kevin Dancey, CEO of IFAC. “International standards are the bedrock on which our profession is built, and IFAC is committed to developing resources that raise awareness and encourage the adoption and implementation of such standards.”

Dancey continued, “We launched the Exploring the IESBA Code initiative last November to support the work of IESBA and highlight the substantively revised and restructured Code, including the digital eCode. We are pleased to see this material being used by professional accountancy organizations around the world to promulgate guidance on ethics and independence, and we will continue to support this important work.”

The Exploring the IESBA Code is published by IFAC and does not form part of the Code. It is non-authoritative and is not a substitute for reading the Code.  Click here to access this and future installments.

For more information about IFAC, visit www.ifac.org

For more information about the IESBA and the Code, visit www.ethicsboard.org

As increasing numbers of companies worldwide report on ESG factors, investors—and those charged with making capital allocation decisions—should be free to make use of all available, relevant information about companies without penalty or increased risk of legal liability.

A recently proposed rule in the United States addresses the appropriateness of ESG considerations as Financial Factors in Selecting Plan Investments (RIN 1210-AB95).  The proposed rule highlights the increasing focus by asset owners and investors on the relevance of “non-financial” information—measures related to value creation, sustainability or environmental, social, and governance factors (“ESG factors”). 

IFAC continues to speak out on behalf of the global accounting profession on the topic of non-financial reporting and believes that corporate reporting should capture all relevant information about organizations.  Investors and other stakeholders are demanding more and higher-quality information about company performance, risks, opportunities, and long-term prospects than the conventional financial reporting process makes available. 

Recent recommendations by the U.S. Securities and Exchange Commission’s Investor Advisory Committee acknowledge that “ESG is no longer a fringe concept.  It is an integral part of the larger investment ecosystem of our modern, global, interconnected world.”

While the importance of maximizing the financial security of pension plan beneficiaries is clear, the rules governing asset allocation and investment decisions should not create ambiguity that could, for example, discourage fund managers from appropriately considering and disclosing ESG factors as a component of how they analyze company performance, nor in any way “chill prospects” for integrating the value of information that ESG factors can bring into portfolio or investment decisions related to ERISA plans.

IFAC believes that investors and markets benefit when relevant, reliable, and comparable ESG factors are included in corporate reporting.  Further, reporting this information can incentivize companies to improve their focus and organizational decision-making on creating long-term value for investors, resulting in better long-term returns.  This is explored in greater depth in IFAC’s Point of View on Enhancing Corporate Reporting.

As the global voice of the accounting profession, IFAC remains committed to advocating for a comprehensive approach to corporate reporting through its contributions to global consultations and engagements.

About IFAC
The International Federation of Accountants (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 more than 175 members and associates in more than 130 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

The International Auditing and Assurance Standard Board (IAASB) invites interested stakeholders to complete an online survey sharing their experience with, and providing feedback relating to, the Auditor Reporting Standards that were issued in 2015. The Survey also asks for input on your experiences with ISA 720 (Revised), The Auditor’s Responsibilities relating to Other Information.

The Auditor Reporting Standards are aimed at enhancing the communicative value and relevance of the auditor’s report. The standards are effective for audits of financial statements for periods ending on or after December 15, 2016.

Stakeholders’ feedback will be an important source of input for the IAASB in carrying out the information gathering activities related to the Auditor Reporting Post-Implementation Review (PIR), which will assist the Board to determine what possible further actions, if any, may need to be undertaken.

“The auditor’s report is the key deliverable addressing the output of the audit process,” said Tom Seidenstein, chair of the IAASB. “Investors and other users of financial statements have called for auditors to provide more relevant information in the auditor’s report based on the audit that was performed. The 2015 revision of the Auditor Reporting Standards was an important step aimed at improving the value of the financial statement audit and the continued relevance of the auditing profession. The IAASB is now seeking comment on whether the revised standards are achieving this goal.”

All interested stakeholders are invited to participate in this global request for input to the PIR, including investors and other users of financial statements, auditors and audit firms, preparers of financial statements, those charged with governance, national standard setters, professional accountancy organizations, and regulators and audit oversight bodies. Stakeholders also are encouraged to share the online survey with their respective networks in their jurisdictions that engage with auditors or use auditor reports.

The link below will direct you to the IAASB webpage for further information on the Auditor Reporting PIR, including the online Survey.

Auditor Reporting Posti-Implementation Review

Stakeholders are invited to complete the Survey until October 23, 2020.