At its December 8-11 meeting in Rome, the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) achieved its strategic goal of substantial convergence with the International Financial Reporting Standards (IFRSs) dated December 31, 2008, with a series of new or improved standards.

Three of these new International Public Sector Accounting Standards (IPSASs) deal with financial instruments—in terms of presentation, recognition and measurement, and disclosures. A fourth standard covers intangible assets and an improvements standard makes minor changes to existing IPSASs. They are primarily drawn from IFRSs, with limited changes dealing with public sector-specific issues. In addition, the board approved an exposure draft covering service concessions.

“In the current global economic environment, when governments are increasingly raising debt through the capital markets as a result of their financial interventions in the private sector, the need for certainty in the application of well-developed financial instruments standards has particular urgency,” states Mike Hathorn, Chair of the IPSASB. “Achieving convergence is also crucial to enhancing transparency at this time of large scale government interventions,” he adds.

The December 2009 meeting was the last under Mr. Hathorn’s chairmanship; his three-year term ends on December 31, 2009—a period that has seen a significant increase in momentum in global interest in and adoption of IPSASB standards.  “During the last 12 months in particular, the achievement of the board and its staff in progressing convergence with IFRSs standards has been outstanding—and I am confident that it will meet the increasing needs of the global public sector in the future,” he concludes.

The new standards and exposure draft will be available to download free of charge from the IFAC website (web.ifac.org/publications) in January 2010.

About IFAC
IFAC (www.ifac.org) 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. It is comprised of 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board (IPSASB) has taken a further step in its global convergence program with International Financial Reporting Standards (IFRSs), scheduled for completion by December 31, 2009, by issuing International Public Sector Accounting Standard (IPSAS) 27, Agriculture. IPSAS 27 provides requirements for accounting for agricultural activity.The International Public Sector Accounting Standards Board (IPSASB) has taken a further step in its global convergence program with International Financial Reporting Standards (IFRSs), scheduled for completion by December 31, 2009, by issuing International Public Sector Accounting Standard (IPSAS) 27, Agriculture. IPSAS 27 provides requirements for accounting for agricultural activity.

IPSAS 27 is primarily drawn from the International Accounting Standards Board's International Accounting Standard 41, Agriculture, with limited changes dealing with public sector-specific issues. For example, IPSAS 27 addresses biological assets--such as livestock--held for transfer or distribution at no charge or for a nominal charge to other public sector bodies or to not-for-profit organizations. IPSAS 27 also includes disclosure requirements that are aimed at enhancing consistency with the statistical basis of accounting that governs the Government Finance Statistics Manual.

"Agricultural activity can be significant for the public sector in certain parts of the world, including many developing countries," states Mike Hathorn, Chair of the IPSASB. "This IPSAS provides financial reporting requirements that enhance accountability for such activity and are a further step towards our convergence target."

IPSAS 27 is available to download from the IFAC website (www.ifac.org/Store). The IPSASB encourages IFAC members, associates, regional accountancy bodies, and firms to use these materials and to promote their availability to members and employees. 

About IFAC
IFAC (www.ifac.org) 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. It is comprised of 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

There is a growing understanding that future generations of taxpayers will have to deal with the fiscal consequences of current government policies. Concerns about the ability of governments to meet future service delivery and financial commitments for health, pensions, debt-servicing, and other obligations have long existed, but have increased in the current economic environment. Uncertainty over the long-term financial consequences of government interventions, including the bailouts and stimulus packages that have characterized the global financial crisis, has added another dimension to concerns over the long-term sustainability of public finances in many countries.

The International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) has just published a Consultation Paper, Reporting on the Long-Term Fiscal Sustainability of Public Finances. It seeks views on how information on the long-term sustainability of government programs, increasingly available in many jurisdictions, may complement information available in traditional financial statements, thereby increasing transparency and enhancing accountability and decision making.

"The need for understandable information on the long-term sustainability of all governmental programs has become increasingly apparent from the work that the IPSASB has carried out in developing its own public sector conceptual framework and on accounting for social benefits," says Mike Hathorn, Chair of the IPSASB. "There is a growing awareness that such information can be crucial in allowing citizens to evaluate the scale of the fiscal challenges facing governments, so that the impact on future generations can be better understood. This Consultation Paper asks for views on how such information might be reported."

The IPSASB's project has benefited greatly from the work of a task force, including representatives from governments, audit offices, accounting standard-setters, statistical accountants, and international organizations. Projects recently undertaken by the Organisation for Economic Co-operation and Development and the United States Federal Accounting Standards Advisory Board have been particularly valuable.

The Consultation Paper is available to download free of charge from the IFAC website (www.ifac.org/Guidance/EXD-Outstanding.php). The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of this Consultation Paper to their members and employees. 

About IFAC
IFAC (www.ifac.org) 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 159 members and associates in 124 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

Thank you for inviting me here today. I would like to compliment UNCTAD on its initiative in organizing this seminar today. I would also like to personally recognize Yoseph Asmelash for his long-time, broad, and continued support of IFAC. Thank you, Yoseph.

IFAC plays a number of roles in the global financial system, although it is principally recognized for setting high-quality standards in international public sector accounting, auditing, education, and ethics through its independent boards. Our less recognized role--and one that will be even more important in the years ahead--is as the facilitator and driver of adoption and high-quality implementation. This is where IFAC can help change the game--moving from the goal of convergence to implementation of standards.

Before we can move to implementation, the world must agree on a single set of standards and stop using scarce resources debating whether there SHOULD be a single set of standards. In the case of accounting standards for the private sector, and, indeed, even for auditing standards, this debate has not yet been settled.

But in the case of public sector accounting, there is not much debate about which standards should be used. The International Public Sector Accounting Standards (IPSASs) were developed by the International Public Sector Accounting Standards Board (IPSASB), under the leadership of Chairman Mike Hathorn, who will be speaking to you in a moment. The IPSASs are a complete set of high-quality standards that governments at all levels can--and should--be using to report to taxpayers, their elected legislature, and borrowers around the world.

Good morning. As president of the International Federation of Accountants, IFAC, I want to thank you for joining us here this morning as we speak of issues that are critical not only to Brazil and Latin America but to the world. In addition, I want to extend greetings to our CReCER partner organizations - the World Bank, Inter-America Development Bank, IFAC member CFC and the six largest accounting networks - for all their work in the preparation of this week's program.

As I was preparing to travel to Brazil, the IFAC staff has helped by providing me background information about the economy and other issues that quite relate to the country I am visiting.  One of the things that step out in my mind about the background information I have received was the motto of São Paulo, "Non ducor, duco"; which as I understand correctly, means, "I am not led; I lead." This speaks directly to the independence and the spirit and leadership in São Paulo and its people, and it forms the perfect background for me today, in choosing the themes that I would like to share with you. 

There are four areas/four themes, of leadership that I would like to discuss. The first is: Speaking out as the global voice of the profession. The next is: Showing the way to an improved financial infrastructure. The third concerns: Supporting SMEs and micro-entities that need extra care; and, last, is: Sharing tasks when collaboration is appropriate.

"The accounting profession can and should take a leadership role in helping the world steer its way out of the global financial crisis," International Federation of Accountants (IFAC) President Robert L. Bunting told the audience gathered in São Paulo, Brazil, for the third annual CReCER conference (Spanish acronym of Accounting and Accountability for Regional Economic Growth).  "At this crossroad for the world economy, this means raising our voice about what we know best-including the capital markets, government accountability, and the small and midsize businesses we call SMEs."

Mr. Bunting reminded the audience that every kind of entity needs the financial information that high-quality standards provide as we move toward recovery from the recession. Businesses in Latin America and the Caribbean often need to prove their economic viability as business partners for new opportunities in the Middle East and China, or for ongoing ones in this hemisphere. Governments need to confirm their fiscal health for the capital markets or for membership in regional economic organizations.

"Governments worldwide must follow the same high standards of financial reporting as their private sector counterparts if we are to believe the economic picture they paint-and to avoid this kind of global meltdown in the future," Mr. Bunting said. "The broad-based adoption of International Public Sector Accounting Standards-which IFAC has also recommended strongly to the G-20 Leaders-is critical to improving government transparency and accountability, in light of the unprecedented takeovers, lending, guarantees, and bailouts of major market institutions, banks, and companies that have taken place," Mr. Bunting added.  He also noted that IFAC is working with the World Bank to develop and strengthen the accountancy profession in developing and emerging economies as a key step in achieving financial stability.

Mr. Bunting also spoke out about the importance of supporting small and midsize businesses and the smaller accountancy firms that serve them in recovery from the recession. "The people behind Latin America's SMEs are vital to creating sustainable growth, jobs, and wealth," he said, because "they turn innovation and agility into new products and services. The OECD says they account for most businesses in all countries and are a major source of new jobs. Yet, they are often a forgotten voice in the regulatory and public policy dialogue. We cannot let this happen."

The CReCER conference, September 23-25, 2009, is designed to increase awareness of the critical importance of sound financial reporting and auditing for the development of a well-functioning market economy and of an efficient public sector-the cornerstones of equitable and sustainable economic development. Over 800 individuals attended, including representatives of the accountancy profession, governments, and the donor community. IFAC, the World Bank, and the Inter-American Development Bank organized the first CReCER event in June 2007, and are joined by IFAC member Conselho Federal de Contabilidade and the six largest accounting networks in the preparation of this year's event, along with other sponsors.
 
About IFAC
IFAC (www.ifac.org) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

Good morning, ladies and gentlemen. I'm delighted to be here today to participate in this special anniversary event. My congratulations to Chief Executive Vickson Ncube, President Koos du Toit of ECSAFA, your past presidents and CEOs, and to you, members, on this milestone in your organization's history. I would also like to recognize the hosting institutes and our IFAC colleagues, the South African Institute of Chartered Accountants and the South African Institute of Professional Accountants, and the chief or platinum sponsor, ACCA, as well as all the other sponsors who have contributed in one way or another to making this occasion a success.

My brief remarks today will focus on looking ahead, to consider what IFAC can--and already does--contribute to the Africa of tomorrow through  sustainable development. I suppose that if you walked down a main street in Johannesburg and asked someone at random what is needed for sustainable development in this country, you might find quite a few people who would say "more sports" and, in particular, "success for Bafana Bafana." But there was also the unexpected visit of the Indian Cricket Premiere League, which provided a big boost to the South African economy, particularly for the travel and tourism sector. And it was followed by another welcome event, this time the Confederations Cup. I also note that construction is moving ahead for next year's FIFA World Cup, which should continue to highlight South Africa's unique attractions, as well as spur its economy.

And yet, man or woman does not live by football alone--not in South Africa, as one of the G-20 nations, and certainly not in other areas of the continent that have much further to go in developing a sustainable economy. What they need is people and innovation, and an economic environment that encourages these entrepreneurs to succeed with their ideas, for this is key to building a sustainable business and social environment.

Introduction
Good morning. I would like to thank you for inviting me to speak on this wonderful occasion, and to say how very pleased I am to be here today.

As you may know, the ICAI was one of the founding member bodies of the International Federation of Accountants, IFAC, and has always been one of our key members. So it is even more gratifying to offer my personal congratulations on ICAI's Diamond Jubilee.

I also bring greetings and congratulations from IFAC's President, Bob Bunting, and Chief Executive, Ian Ball, who cannot be here today.

I'm here to look ahead this morning, and speak to you about the changing dimensions of the accountant's role. In other words, I will speak about what is expected of our profession today and tomorrow, and how we can better live up to those expectations.

In the course of my remarks, I will tell you about a few things that the International Federation of Accountants (IFAC) and the standard-setting Boards that operate its auspices are doing to help professional accountants keep the public interest in mind as they function as accountants and auditors.

To enhance the usability of International Public Sector Accounting Standards (IPSASs) and thus facilitate global convergence, the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) has launched an improvements project with the release of Exposure Draft (ED) 42, Improvements to IPSASs. This ED is the first of a proposed series of annual improvements to the IPSASs and is modeled on the successful annual improvements program developed by the International Accounting Standards Board (IASB).

The proposed amendments in the ED are related primarily to the recognition, measurement, or disclosure requirements but do not represent substantive revisions to the content of existing standards. They reflect changes made by the IASB to related International Financial Reporting Standards.

"The financial reporting world of the public sector is a dynamic one," states Mike Hathorn, IPSASB Chairman, "and it is necessary for the IPSASB to continually reassess the IPSASs to ensure that they are relevant to users of public sector financial statements and easy to use by preparers of financial statements."

How to Comment
Comments on ED 42 are requested by September 30, 2009. The ED may be viewed by going to www.ifac.org/Guidance/EXD-Outstanding.php. Respondents are asked to send their comments electronically through the IFAC website, using the "Submit a Comment" link on the Exposure Drafts and Consultation Papers page. Please note that first-time users must register to use this new feature. Although IFAC prefers that comments be submitted using the online submission system, e-mail may continue to be sent to edcomments@ifac.org and stepheniefox@ifac.org. Comments can also be faxed to the attention of the IPSASB Technical Director at +1 (416) 977-8585, or mailed to the IPSASB Technical Director at 277 Wellington Street West, 4th Floor, Toronto, Ontario M5V 3H2, Canada. All comments will be considered a matter of public record and will ultimately be posted on the IFAC website.

About IFAC
IFAC (www.ifac.org) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

The International Federation of Accountants (IFAC) applauds the call by the US President for urgent progress toward the "development of a single set of high-quality global accounting standards." These standards were one element of the proposal for regulatory reform, issued at a press conference on Wednesday, that Mr. Obama called "necessary to avoid another financial crisis."

"The President's acknowledgment of the importance of developing a high-quality set of global accounting standards reflects the importance of global standards and a level playing field in financial reporting," says Ian Ball, Chief Executive Officer, IFAC. He also noted that the US position is consistent with the G-20's call for "substantial progress by year-end 2009." IFAC wrote to the G-20 in support of convergence to global standards before their meeting in London last April.

Convergence to global standards is an idea that IFAC supports strongly-not only in accounting but also in auditing, ethics, and public sector accounting standards, all of which are important to the functioning of global capital markets.

The complete White Paper issued by Mr. Obama's office, prepared by the United States Treasury Department, can be found at http://www.financialstability.gov/docs/regs/FinalReport_web.pdf.

About IFAC
IFAC (www.ifac.org) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its independent standard-setting boards, IFAC sets international ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.