Global Digest December 2012
18.12.2012
December 2012
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1. Nigerian President Commends ICAN
Speaking on behalf of Nigerian President Goodluck Jonathan, Johan Niyi Otunla, the Accountant-General of Nigeria, recently commended the Institute of Chartered Accountants of Nigeria (ICAN) for its contributions to Nigeria’s capacity-building efforts, including ICAN’s “pioneering” role in establishing the Financial Reporting Council of Nigeria. Addressing ICAN’s 42nd annual conference, Mr. Otunla called on members of the profession to play a “great role” in fostering and enhancing financial, economic, and social development. He also discussed development challenges in Nigeria, including human and natural resource limitations and political, economic, and corporate governance issues. Mr. Otunla also recently announced continued progress on the road toward adoption of International Public Sector Accounting Standards, which is planned for 2013.
Sources: Business Day and AllAfrica.com
2. Business Sustainability Conference Held by HKICPA
The Hong Kong Institute of Certified Public Accountants (HKICPA) recently held a conference on business sustainability and the future of the accounting profession, which featured speakers Christine Loh, under-secretary for the environment, Julia Leung, under-secretary for financial services and the treasury, and Paul Druckman, chief executive officer of the International Integrated Reporting Council. The conference covered why sustainability is important for business and how to best communicate and report on sustainability. Additionally, A+, the Institute’s journal, published “Putting a Value on Responsibility” in the October issue, which clarifies the meaning of including environmental, social, and governance issues and provides suggestions on ways companies can get started, including commonly used global standards for sustainability reporting. The article also addresses some of the potential areas of confusion, including a considerable knowledge gap on what to measure and report.
Sources: Hong Kong Institute of Certified Public Accountants and A+
3. NBA Publishes English Translation of Tone at the Top
An English translation of the Nederlandse Beroepsorganisatie van Accountants (NBA, formerly Royal NIVRA)’s discussion report, Toon aan de Top, has been released. Tone at the Top: Can Accountants Make a Difference? argues that more weight and focus needs to be given to the tone at the top of any organization and that supervisory boards must ensure it is higher on management agendas. The report offers ways professional accountants can help their organizations make sure tone receives an appropriate amount of focus.
4. Professional Development Week Held by CISPA
The Cayman Islands Society of Professional Accountants (CISPA) recently organized a professional development week for financial and audit professionals in the government, which was also open to all public sector managers and private sector accountants. The development week featured a two-day training event that included discussion topics such as governance, ethics and values, performance auditing, and what is new in public sector accounting standards. Participation in the development week included Cayman Islands Auditor General Alastair Swarbrick; Central Tenders Committee of the Cayman Islands Chairman Nick Freeland; Governor Duncan Taylor; and Deputy Governor Franz Manderson, who gave the keynote address.
Source: Cay Compass
5. Financial Reporting Framework for SMEs Proposed by AICPA
The American Institute of Certified Public Accountants (AICPA) has released for comment a proposal for financial reporting for privately owned small- and medium-sized entities (SMEs) that would allow SMEs to rely on traditional accounting principles. Financial Reporting Framework for SMEs “draws upon a blend of traditional methods of accounting with some accrual income tax methods. It consists of simplified principles and focuses on the most relevant information needs of SMEs and their financial statement users.” The comment deadline is January 30, 2013; a final framework is expected in the first half of 2013.
6. CIPFA Report Evaluates Public Service and the Financial Crisis
A new report from the Chartered Institute of Public Finance and Accountancy (CIPFA) takes a look at the long-term implications of the global financial crisis on public service organizations in the UK. The Long Downturn: Implications for Public Service Organizations features “a statistical analysis of the recession from the [UK] government’s plans and forecasts in 2010 up until the time when the budget deficit is likely to be eliminated.”
7. Student Conference in Brazil Draws More Than 5,000
More than 5,000 students participated in the third meeting of students of accounting in Sгo Paulo, held recently by the Instituto dos Auditores Independentes do Brasil (Institute of Independent Auditors of Brazil, or IBRACON). Meet the Winners included sessions on enhancing the accounting profession in Brazil, accounting and accountability, and change management. In closing the event, Eduardo Pocetti, the national president of IBRACON, noted that the accounting profession is experiencing a great moment in the labor market and that exceptional performance in the accounting function will be the key factor for the students to achieve successful careers.
8. Ethics Microsite Launched by AAT
The Association of Accounting Technicians (AAT) has launched a new ethics microsite—www.aat-ethics.org.uk—which is open to AAT members and students as well as the general public. The microsite includes interactive resources and tools, including theoretical ethical scenarios to test users’ ethics acumen. Short podcasts on the fundamental principles of ethics in accounting are also available.
9. Recent Member Body Appointments and Elections
10. Joint Initiatives Launched Among Professional Accountancy Organizations
 1. G-20 Pulls Back from Deficit Goals on Fears of Global Recession
Global leaders in the Group of Twenty (G-20) recently backed off earlier deficit goals over concerns that austerity policies adopted in 2010 might cause a global recession. The G-20 is still planning to set “credible and ambitious” debt targets for 2016, however. The G-20 also recently told the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) to push forward on convergence between accounting standards in order to advance adoption of International Financial Reporting Standards. The G-20 has set a deadline of mid-2013 to establish a specific timetable for their convergence projects. This will be the fourth time convergence projects have been begun by the IASB and FASB. Source: Reuters 2. IMF: Advanced Economies Need to Take Decisive Action on Sovereign Debt The US, Europe, and other “advanced economies” have been urged by the International Monetary Fund (IMF) to act more decisively on debt. In a communiquй, the IMF warned that global economic growth has decelerated and many uncertainties and risks remain. The IMF said, “We need to act decisively to break negative feedback loops and restore the global economy to a path of strong, sustainable, and balanced growth. Advanced economies should deliver the necessary structural reforms and implement credible fiscal plans. Emerging market economies should preserve or use policy flexibility as appropriate to facilitate a response to adverse shocks and support growth.” Sources: The New York Times (registration required) and International Monetary Fund
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