IFAC Update December 2012
1. IFAC CEO and President Named Top Influencers in the Accountancy Profession
2. IFAC Issues Policy Position Paper on Effective Governance, Risk Management, and Internal Control
3. SMP Committee Releases Strategy and Work Plan
4. Third Edition of Practice Management Guide Now Available
5. SMP Article on Review Engagements Available for Use by IFAC Members
6. IPSASB to Publish First Four Chapters of the Conceptual Framework
7. New Translations and Permissions Policy Statements in Effect
8. Newly Available Translated Publications
1. 2013 IFAC SMP Forum: Save the Date and Sponsorship Information
1. IAASB Exposure Draft
- International Standard on Auditing (ISA) 720 (Revised), The Auditor’s Responsibilities Relating to Other Information in Documents Containing or Accompanying Audited Financial Statements and the Auditor’s Report Thereon—Comment Deadline: March 14, 2013—Comment Deadline: December 11, 2012
- Conceptual Framework Exposure Draft (ED) 2, Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Elements and Recognition in Financial Statements—Comment Deadline: April 30, 2013—Comment Deadline: April 30, 2013
- Conceptual Framework Exposure Draft (ED) 3, Measurement of Assets and Liabilities in Financial Statements—Comment Deadline: April 30, 2013—Comment Deadline: April 30, 2013
- Professional Accountants in Business Strategy and Work Plan for 2013-2016—Comment Deadline: January 31, 2013—Comment Deadline: January 31, 2013
- Project and Investment Appraisal for Sustainable Value Creation—Comment Deadline: February 29, 2013 —Comment Deadline: January 31, 2013
1. IFAC CEO and President Named Top Influencers in the Accountancy Profession
IFAC Chief Executive Officer Ian Ball and President Warren Allen were named among the top Influencers in the accountancy profession by International Accounting Bulletin. According to International Accounting Bulletin, “under Ball’s leadership IFAC has put public sector financial reporting at the top of its agenda in the past year particularly as the sovereign debt crisis has become more prevalent. Ball has urged the G20 to take action against current inconsistent and unreliable reporting. ”Mr. Ball is also featured in the publication The Accountant on his achievements for 2012 and what lies ahead in 2013.
2. IFAC Issues Policy Position Paper on Effective Governance, Risk Management, and Internal Control
IFAC has issued Policy Position Paper 7, Effective Governance, Risk Management, and Internal Control, which highlights good practice and the role of professional accountants in business in achieving sustained organizational success. It encourages greater global consistency in principles and guidelines that help organizations implement governance, risk management, and internal control as integrated parts of their management systems.
3. SMP Committee Releases Strategy and Work Plan
The IFAC Small and Medium Practices (SMP) Committee has released its Strategy and Work Plan for 2013-2016. The publication outlines the committee’s objectives, strategic plan, and key planned activities. It also highlights how the committee’s planned activities align with and support IFAC’s overall strategy and work plan to support the worldwide accountancy profession. While this document contains the SMP Committee’s strategy for the four-year period 2013–2016, the work plan activities detailed are only for 2013. Work plans for the three subsequent years will be developed annually.
4. Third Edition of Practice Management Guide Now Available
5. SMP Article on Review Engagements Available for Use by IFAC Members
6. IPSASB to Publish First Four Chapters of the Conceptual Framework
At its December meeting in New York, the International Public Sector Accounting Standards Board (IPSASB) approved for issue the first four chapters of The Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities (the Conceptual Framework): Chapter 1—Role and Authority of the Conceptual Framework; Chapter 2—Objectives and Users of General Purpose Financial Reporting; Chapter 3—Qualitative Characteristics; and Chapter 4—Reporting Entity. The four chapters are scheduled for publication in January 2013.
7. New Translations and Permissions Policy Statements in Effect
While IFAC greatly appreciates the significant contributions made by many of its stakeholders in the adoption and implementation of international standards, it also must adapt to the increased cost of high-quality international standard-setting.
Following recent ratification by the IFAC Board, IFAC has published revised policy statements for reproducing, or translating and reproducing, IFAC publications or international standards. In January 2013, the IFAC Board introduced an annual license fee, or waiver fee depending on the circumstances, for use of IFAC’s copyrighted materials. Such fees contribute to funding the continued activities and mission of IFAC and the independent standard-setting boards it supports.
The introduction of the above-mentioned fees is the only change of substance to the policy statements. Other changes are editorial in nature or serve to clarify established practice. Updated versions of the Policy for Reproducing, or Translating and Reproducing, Publications of the International Federation of Accountants and the Policy for Translating and Reproducing Standards Published by the International Federation of Accountants were published in December 2012 and supersede the previous versions. More information can be found in the Translations & Permissions Frequently Asked Questions.
8. Newly Available Translated Publications
- Dutch—International Auditing Practice Note (IAPN) 1000, Special Considerations in Auditing Financial Instruments (2011)
- Finnish—Handbook of the Code of Ethics for Professional Accountants (2012), Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012)
- Romanian—New IFAC Publication Provides Support for Professional Accountants Improving Internal Control (2012), How to Cope with Pressure to Lower Fees (2012)
- Slovak—Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities, Third Edition (2011)
- Spanish—Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (2010)
- Swedish—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012)
1. 2013 IFAC SMP Forum: Save the Date and Sponsorship Information
The 2013 IFAC Small and Medium Practices (SMP) Forum will be held in Kampala, Uganda, on June 5, 2013, and jointly hosted with the Institute of Certified Public Accountants of Uganda (ICPAU) and the Pan African Federation of Accountants (PAFA). Each IFAC member organization may send up to ten delegates, who should be those responsible for SMP/small- and medium-sized entity (SME) affairs at their organization. Registration forms will be sent to IFAC member organizations closer to the event. If you are an individual member of an IFAC member organization and wish to attend, please register your interest with your organization. If your organization wishes to sponsor the event, please contact PaulThompson@ifac.org as soon as possible. More information will be posted at www.ifac.org/2013SMPForum as it becomes available.
1. IAASB Exposure Draft
The International Auditing and Assurance Standards Board (IAASB) has released for public comment proposed International Standard on Auditing (ISA) 720 (Revised), The Auditor’s Responsibilities Relating to Other Information in Documents Containing or Accompanying Audited Financial Statements and the Auditor’s Report Thereon. The proposed standard clarifies and enhances the scope and focus of auditor efforts on “other information”—that is, information included in documents containing or accompanying the entity’s audited financial statements. The proposals recognize that significant changes in financial reporting have occurred over the last two decades regarding the information issued in connection with an entity’s financial statements and the manner in which it is shared with users. Comment Deadline: March 14, 2013
2. IPSASB Exposure Drafts
The International Public Sector Accounting Standards Board (IPSASB) recently released two Exposure Drafts (EDs)—Conceptual Framework ED 2, Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Elements and Recognition in Financial Statements and Conceptual Framework ED 3, Measurement of Assets and Liabilities in Financial Statements.
Both EDs are related to the IPSASB’s project to develop a Conceptual Framework for the general purpose financial reporting of public sector entities. ED 2 proposes definitions of eight elements—assets, liabilities, revenue, expenses, deferred inflows, deferred outflows, ownership contributions, and ownership distributions—and considers how to deal with the uncertainty that can arise over the existence and measurement of elements. ED 3 identifies the measurement concepts that should guide the IPSASB in the selection of measurement bases for International Public Sector Accounting Standards. It stresses the importance of selecting measurement bases that meet the objectives of financial reporting decision making and accountability. Comment Deadlines: April 30, 2013
The proposed Professional Accountants in Business (PAIB) Strategy and Work Plan for 2013-2016 outlines specific initiatives to improve recognition of the diverse roles professional accountants in business perform and how they need to be positioned to drive successful and sustainable organizations. As professional accountants in business make up more than half of all accountants in the world, they have the collective power to significantly influence their organizations in implementing effective governance and an ethical culture supported by integrated risk management and internal control, sustainable leadership, and effective reporting and performance management. Comment Deadline: January 31, 2013.
The PAIB Committee’s proposed principles-based International Good Practice Guidance, Project and Investment Appraisal for Sustainable Value Creation, will help the accountancy profession to facilitate sustainable organizations, financial markets, and economies by taking into account economic, environmental, and social considerations for project appraisal and investment decisions. The guidance sets out the critical role professional accountants in business play in advising on the application of financial principles and theory. Comment Deadline: February 29, 2012
