March 2013

1. IFAC Releases Results of its 2012 Global Leadership Survey of the Accountancy Profession
2. IFAC, CIMA, PwC Release Background Paper, Business Model, in Advance of Integrated Reporting Framework
3. Former IFAC CEO Ian Ball Assumes Volunteer Role as Principal Advisor
4. SMP Committee Releases Updated Good Practice Checklist
5. Public Sector Accounting Focus for G-20 and European Commission
6. PFI Interview with New IFAC CEO: Setting the Standard
7. IAASB Releases Survey on Strategic Review
8. Newly Revised ISA 610 Released
9. IESBA Releases Three Final Pronouncements
10. IESBA March Meeting Highlights: Podcast Now Available
11. IES 5 is Latest Standard Issued under IAESB Revision Project
12. IFAC is Hiring
13. Newly Available Translated Publications

1. IFAC Staff Participates in CFO Conference in Pakistan
2. Upcoming SMP Forum in Uganda; Registration Closing Soon

3. IFAC Staff Discuss Integrated Reporting During CSR Forum
4. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available
 

1. IAASB Exposure Draft and Consultation Paper

• A Framework for Audit Quality—Comment Deadline: May 15, 2013

2. IPSASB Exposure Drafts

• Conceptual Framework Exposure Draft 2, Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Elements and Recognition in Financial Statements—Comment Deadline: April 30, 2013
• Conceptual Framework Exposure Draft 3, Measurement of Assets and Liabilities in Financial Statements—Comment Deadline: April 30, 2013

1. IFAC Releases Results of its 2012 IFAC Global Leadership Survey of the Accountancy Profession

IFAC has released the results of its 2012 IFAC Global Leadership Survey of the Accountancy Profession. The survey elicited respondents’ opinions regarding perceptions of the accountancy profession and the most significant issues in 2013. Of the 22 issues presented for consideration, respondents identified five top concerns: the needs of small- and medium-sized practices and small- and medium-sized entities; the reputation and credibility of the profession; issues related to the European Union (EU) draft legislation; public sector financial management and sovereign debt issues; and the difficult global financial climate.

2. IFAC, CIMA, PwC Release Background Paper, Business Model, in Advance of Integrated Reporting Framework

To address the wide variation in how organizations define their business models and approach disclosure, IFAC, the Chartered Institute of Management Accountants (CIMA), and PwC, on behalf of the International Integrated Reporting Council (IIRC), have released a background paper. Business Model provides background and context on how business model reporting should be undertaken in an integrated report and suggests content for business model reporting requirements that will be presented in the proposed International Integrated Reporting Framework, which will be released by the IIRC on April 16, 2013. The proposed definition and guidance in the background paper aim to bridge the varied interpretations by highlighting commonalities and ensuring a broad and inclusive application across industries and sectors.

3. Former IFAC CEO Ian Ball Assumes Volunteer Role as Principal Advisor
After stepping down in February, former IFAC CEO Ian Ball will continue to work with IFAC, in a volunteer capacity, as a principal advisor. Mr. Ball will represent IFAC as a member of the International Integrated Reporting Council’s board and as chair of the Working Group.

4. SMP Committee Releases Updated Good Practice Checklist

The second edition of the Good Practice Checklist for Small Business is now available from the IFAC Small and Medium Practices (SMP) Committee. This multi-part checklist features a new standalone section on environmental management. Other sections cover financial tasks, strategic management tasks, and regulatory requirements, among others. The checklist is meant primarily for SMPs, as a marketing or diagnostic tool to help them determine the advice a small business client may need, and also to help them in managing their own businesses. IFAC member organizations are encouraged to adapt and/or translate the checklist for their individual members. Email permissions@ifac.org.

5. Public Sector Accounting Focus for G-20 and European Commission

Public sector accounting was a key topic of discussion at the recent G-20 Finance Ministers’ and Central Bank Governors' meeting, where the group discussed the need for “transparency and comparability of public sector reporting.” The communiqué issued for the Feb. 15-16 meeting called on the International Monetary Fund and the World Bank to further explore the issue and provide appropriate updates, declaring that “strengthening the public sector balance sheet is needed to better assess risks to public debt sustainability.”

In a related development, the European Commission recently issued a report finding that International Public Sector Accounting Standards (IPSASs) “represent an indisputable reference for potential EU harmonized public sector accounts.” The report also states that harmonized accruals-based government accounting improves transparency, accountability and the comparability of financial reporting in the public sector.

6. PFI Interview with New IFAC CEO: Setting the Standard

Public Finance International (PFI) has published an in-depth interview with IFAC’s new CEO, Fayezul (Fayez) Choudhury. The interview discusses some of Mr. Choudhury’s goals as he takes the reins at IFAC and the landscape for public sector accounting.

7. IAASB Releases Survey on Strategic Review

The International Auditing and Assurance Standards Board (IAASB) has released an online survey seeking public comment, insights, and views from all stakeholders to help shape its future direction for 2015 and beyond. The survey also solicits feedback on the appropriateness of the IAASB changing its future strategy period to five years (2015–2019) instead of three, as it has done in the past. Responses to the survey will inform the development of a formal Consultation Paper on the strategy and work program commencing 2015. The Consultation Paper is scheduled to be issued in late 2013. Comments are requested by May 7, 2013.

8. Newly Revised ISA 610 Released

The International Auditing and Assurance Standards Board (IAASB) has released a follow-up to its 2012 release of stronger standards dealing with the external auditor’s use of an internal audit function’s work. The newly revised (2013) International Standard on Auditing (ISA) 610, Using the Work of Internal Auditors, now includes guidance to external auditors when determining whether they can use direct assistance from internal auditors, and if so, in which areas and to what extent. The material addressing direct assistance does not apply if the external auditor is prohibited by law or regulation from obtaining direct assistance.

9. IESBA Releases Three Final Pronouncements

The International Ethics Standards Board for Accountants (IESBA) recently released strengthened provisions in its Code of Ethics for Professional Accountants (the Code) that address conflicts of interest  and a breach of a requirement of the Code. Recognizing the ethical questions and challenges that can arise from conflicts of interest, the IESBA has revised the Code to establish more specific requirements and provide more comprehensive guidance to support professional accountants in identifying, evaluating, and managing such conflicts. Regarding breaches, the revisions to the Code establish a robust framework for addressing a breach of an independence requirement in the Code. The IESBA also released a revised definition of the term “engagement team.” The revised definition clarifies the relationship between internal auditors providing direct assistance on an external audit and the meaning of an engagement team under the Code. These revised pronouncements will be included in the 2013 Handbook of the Code of Ethics for Professional Accountants, due out in the second quarter of 2013.

10. IESBA March Meeting Highlights: Podcast Now Available

A podcast featuring highlights from the International Ethics Standards Board for Accountants (IESBA)’s March 11-13, 2013 meeting is now available. The meeting highlights podcast includes updates from IESBA Chair Jörgen Holmquist and task force chairs on key projects or initiatives that the IESBA deliberated at the meeting, including responding to a suspected illegal act, amendments to the definition of those charged with governance, review of Part C of the IESBA Code of Ethics for Professional Accountants (the Code), the structure of the Code, long association of senior personnel (including partner rotation) with an audit client, and non-assurance services. Written highlights of the meeting will be available within the next two weeks.

11. IES 5 is Latest Standard Issued under IAESB Revision Project

The International Accounting Education Standards Board (IAESB) has issued the revised International Education Standard (IES) 5, Initial Professional Development—Practical Experience. IES 5 aims to assist educational organizations, employers, regulators, government authorities, and any other stakeholders who support the practical experience of professional accountants. The revised IES 5, which is effective from July 1, 2015, recognizes that practical experience is relevant in developing the competence of an aspiring professional accountant while also promoting greater flexibility in measuring practical experience; permitting practical experience supervisors to direct, advise, and assist an aspiring professional accountant’s experience; and requiring practical experience to be recorded in a verifiable and consistent form.

12. IFAC is Hiring

IFAC is hiring for a number of different positions, including technical managers in multiple areas. While positions require a familiarity with the accounting profession and global financial issues, an accounting degree is not required for all positions. Visit Working at IFAC to learn more. Qualified candidates should send a resume and salary requirements to jobs@ifac.org.

13. Newly Available Translated Publications

·         German—Tomorrow’s Firm and the Role of Value Pricing: IFAC Interview with Ronald J. Baker  (2013)
·         Lithuanian—Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities, Third Edition (2011)
·         Serbian—Guide to Quality Control for Small- and Medium-Sized Practices, Third Edition  (2011)

1. IFAC Staff Participates in CFO Conference in Pakistan

IFAC senior technical manager Vincent Tophoff recently presented during the Institute of Chartered Accountants of Pakistan (ICAP)’s CFO Conference 2013, CFO: Meeting Future Challenges! Mr. Tophoff discussed current trends and thinking in risk management, including best practices. Strategic Risk Management in the Face of Uncertainty and Unexpected Risks is available on the IFAC website. Yacoob Suttar, chair of the ICAP’s Professional Accountants in Business (PAIB) Committee and member of the IFAC PAIB Committee, also gave a presentation to the conference on the activities of both committees.

2. Upcoming SMP Forum in Uganda; Registration Closing Soon

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 and the Pan African Federation of Accountants. 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 have been sent to IFAC member organizations. If you are an individual member of an IFAC member organization and wish to attend, please register your interest with your organization. More information will be posted at www.ifac.org/2013SMPForum as it becomes available. Registrations and hotel bookings should be completed by April 15, 2013 to ensure availability.

3. IFAC Staff Discuss Integrated Reporting During CSR Forum

IFAC head of professional accountants in business Stathis Gould participated in a panel discussion on sustainability reporting and ratings, and integrated reporting, during Capital Link’s annual corporate social responsibility (CSR) forum in New York on March 13, 2013. The well-attended event included investors, corporate sustainability managers, investor relations professionals, and leaders in CSR. Mr. Gould focused on the development of integrated reporting and how it complements sustainability reporting, as well sharing the release date for the proposed Integrated Reporting Framework (April 16, 2013).

4. World Congress of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available

The next World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy in 2014. Themed 2020 Vision: Learning from the Past, Building the Future, the 2014 WCOA will be held November 10-13 at the Auditorium Parco della Musica. More than 4,000 professionals from all over the world will convene at this IFAC event, which is held every four years. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will shape the future of the profession.

The WCOA also provides a global platform for organizations and firms to share their projects and visions via various sponsorship opportunities. For more information, please contact info@wcoa2014rome.com or Dimarco@wcoa2014rome.com.

1. IAASB Consultation Paper

The International Auditing and Assurance Standards Board (IAASB) has released for public comment a new Consultation Paper addressing audit quality. A Framework for Audit Quality seeks input from stakeholders internationally who have an interest in continually enhancing audit quality, including regulators, audit committees, investors, and audit firms. Through the proposed framework, the IAASB aims to raise awareness of the key elements of audit quality, encourage stakeholders to explore ways to improve audit quality, and facilitate greater dialogue between key stakeholders on the topic. The IAASB invites all stakeholders to comment on the Consultation Paper. To access the document or submit a comment, visit the IAASB website. An At a Glance document is also available. Comment Deadline: May 15, 2013

2. IPSASB Exposure Drafts

The International Public Sector Accounting Standards Board (IPSASB) has two Exposure Drafts (EDs) still open for comment—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