20240429 Calibre April 2024 Investor Presentation.pdf
Ifac newsletter dec 2010 (2)
1. IFACNewsA N e w s B r i e f i n g f r o m t h e I n t e r na t i o na l F e d e r a t i o n o f A c c o u n t an t s
December 2010
2 International Auditing and
Assurance Standards Board
3 President’s Message
4 International Accounting
Education Standards Board
5 International Ethics
Standards Board
for Accountants
6–7 World Congress of
Accountants
8 International Public
Sector Accounting
Standards Board
9 Professional Accountancy
Organization Development
Committee
10 Professional Accountants
in Business Committee
11 Translations: Case Study
11 Small and Medium
Practices Committee
12 Forum of Firms
18TH World Congress of Accountants a Huge Success
T
he 18th World Congress of Accountants
(WCOA) took place November 8–11 in
Kuala Lumpur, Malaysia, with attendance
by a record-breaking 6,050 delegates from 134
countries. The Congress was hosted by the
Malaysian Institute of Accountants (MIA) and
IFAC.
The first WCOA was held in 1904 in St. Louis,
Missouri, in conjunction with the World’s Fair,
with only 81 people in attendance. Inter-
national tensions, war, and political strife
throughout the first half of the 21st century
prevented the WCOA from being held at regu-
lar intervals until 1977 in Munich, Germany,
when it was decided to hold the WCOA every
five years. IFAC was also formally established
at the 1977 World Congress. Twenty-five years
later at the 2002 World Congress, the decision
was amended to hold the event every four
years.
The theme of WCOA 2010—“Accountants:
Sustaining Value Creation”—reflects how
more accountants are taking on strategic
and leadership roles, are adding value to the
performance of their organizations, and are
increasingly being held accountable for busi-
ness performance. It also reflects a focus on
sustainability and integrated reporting, which
are top-of-mind for the profession.
Keeping with the sustainability theme, IFAC
and the MIA undertook initiatives to offset the
carbon emissions created by the Congress.
These sustainability efforts included providing
delegates with reusable water bottles in place
of plastic water bottles during the four-day
Congress, and USB drives with select Congress
materials. In addition, IFAC and the MIA, along
with contributions from WCOA delegates, con-
tributed funds to plant 600 trees to offset car-
bon emissions.
The WCOA brought together 183 speakers
from over 40 countries in four plenary ses-
sions and 35 concurrent sessions. Organiza-
tions including The World Bank, Transparency
International, the Financial Stability Board,
the European Commission, the International
Forum of Independent Audit Regulators, and
the International Accounting Standards Board,
among others, were represented. Notable
speakers included China’s Vice Minister of
Finance Dr. Wang Jun; Chairman of the Inter-
national Public Interest Oversight Board Prof.
Stavros Thomadakis; Chairman of the Interna-
tional Accounting Standards Board Sir David
Tweedie; Chairman of the International Valu-
ation Standards Council Mr. Michel Prada; and
Bank Negara Malaysia Governor Tan Sri Dato’
Sri Dr. Zeti Akhtar Aziz.
These speakers discussed a wide range
of topics facing the industry today, including
accounting ethics, governance, standards, con-
vergence, and development of the accounting
profession. Along with the delegates, they dis-
cussed,shared,anddebatedideasandsolutions
to the issues affecting the profession, including:
• Integrated reporting and sustainability;
• Trends in the roles and responsibilities of
professional accountants;
• XBRL and the communication of business
information;
• Governance and international standards;
• The role of and challenges for small and
medium practices;
• IFRS and the convergence of accounting
standards; and,
• Islamic finance.
Ian Ball, CEO of IFAC, chaired a panel titled
“Accountants in the Next Decade—Embrac-
ing Change and Seizing Opportunities,” which
looked at the challenges and opportunities
facing the profession. The panel discussed how
increased globalization and the recent financial
crisis have put the profession in the spotlight.
In addition, they deliberated about the future
of the profession, including the evolution of
integrated reporting, enhanced skills and com-
petencies, and the profession playing more of a
key role in developing strategy, providing assur-
ance on non-financial results, and managing
performance management.
At the Closing Ceremony, new IFAC Presi-
dent Göran Tidström congratulated the del-
egates on their hard work at the Congress to
enhance the relevance of the profession, and
challenged them to continue to do so—in
order to help build and maintain global eco-
nomic growth and stability.
In This Issue
2. ANewsletterfortheInternationalAccountancyProfessionDECEMBER2010
International Auditing and Assurance Standards Board News
IAASB Releases Implementation Progress Report and New Tools to Support the
Clarified ISAs
T
he IAASB released a progress report on its project to
monitor the implementation of the clarified ISAs. The
report—Implementation of the Clarified International
Standards on Auditing (ISAs)—highlights key findings from
the first phase of the IAASB’s initiative to develop a process
for gathering information to help it evaluate the effective
and consistent implementation of the clarified ISAs. Follow-
ing completion of the Clarity Project, the first phase of this
IAASB initiative has focused on learning more about early
implementation experiences. The information gathered
from this first phase and subsequent efforts of the monitor-
ing project will help the IAASB continue to meet its objec-
tive of developing high-quality ISAs.
To promote awareness and understanding of the clari-
fied ISAs, the IAASB also has released a second series of ISA
modules, focusing on some of the new and more signifi-
cantly revised ISAs. These modules cover ISAs that address
materiality in planning and performing an audit of financial
statements, the evaluation of identified misstatements, writ-
ten representations, using the work of an auditor’s expert,
and auditor reporting.
As further support for ISA implementation, the IAASB
staff has released Auditor Considerations Regarding Sig-
nificant Unusual or Highly Complex Transactions, a ques-
tions-and-answers (Q&A) publication. The Q&A highlights
considerations in the ISAs that are relevant to auditing such
transactions, often an area that gives rise to risks of material
misstatement of the financial statements.
These new resources will assist people responsible for
adopting and implementing the clarified ISAs and, in particu-
lar, auditors as they prepare for the upcoming audit season.
This additional support underscores the IAASB’s commitment
to facilitating effective implementation of the ISAs and, ulti-
mately, to enhancing audit quality.
The implementation report, the Q&A publication, and the
new ISA modules are available to download free of charge from
theIAASBClarityCenterontheIAASB’swebsite:www.iaasb.org/
clarity-center.
P
rofessor Linda de Beer has been
appointed chair of the CAG to the
IAASB. The IAASB CAG is an inde-
pendent body and provides the forum
in which the representatives of its vari-
ous member organizations—including
regulators, preparers, and others with
an interest in international auditing and
assurance—provide advice on technical
and public interest matters relating to the drafts of IAASB
standards and strategy.
As a representative of the Johannesburg Stock Exchange,
Prof. de Beer previously represented the World Federation
of Exchanges on the CAG. She was elected by the CAG mem-
bership to succeed the current CAG chairman, David Dam-
ant, who since June 2004 has served as the first independent
IAASB CAG chairman. Prof. de Beer’s appointment—a three-
year term effective October 1, 2010—was approved by the
Public Interest Oversight Board (PIOB).
The chairman of the IAASB CAG provides leadership direc-
tion to the CAG, overseeing the achievement of the CAG’s
objectives and liaising with the PIOB and the IAASB. The PIOB
oversees the activities of the IAASB and of the CAG.
Prof. de Beer is an independent financial reporting and
corporate governance advisor, and visiting professor at the
University of the Witwatersrand in Johannesburg. She serves
as an independent non-executive director on the boards
of Afgri Holding Ltd (listed on the JSE) and Royal Bafokeng
Platinum Ltd. She is a member of the King Committee on Cor-
porate Governance, the Issuers’ Services Advisory Committee
of the JSE, and the Committee for Auditing Standards of the
Independent Regulatory Board for Auditors in South Africa.
Linda de Beer Appointed IAASB Con-
sultative Advisory Group (CAG) Chair
2
I
n October, the IAASB released for public exposure pro-
posed ISRS 4410, Compilation Engagements. The proposed
standard is the first step in the IAASB’s work to enhance its
standards for services that can be used by entities that are
either not required or do not elect to be audited to meet their
business reporting needs, most notably small- and medium-
sized entities (SMEs). Through a compilation engagement,
practitioners can provide significant benefit by applying their
expertise in accounting and financial reporting. This expertise
is applied to assist the management of an entity in preparing
and presenting historical financial information for use by the
entity’s internal or external stakeholders. Comments on the
exposure draft are requested by March 31, 2011.
The IAASB also released for public exposure a new proposed
pronouncement—IAPS 1000, Special Considerations in Auditing
Complex Financial Instruments—that highlights practical con-
siderations for auditors when dealing with complex financial
instruments. The pronouncement gives particular emphasis
to auditing considerations relating to valuation and disclosure
issues for financial statement items measured at fair value.
Along with the proposed IAPS 1000, the IAASB is also
exposing for comment proposed changes to the current
Preface to the International Standards on Quality Control,
Auditing, Review, Other Assurance and Related Services, which
explains the authority of this and future IAPSs, as well as
proposals to withdraw the six existing IAPSs. The IAASB
plans to finalize proposed IAPS 1000 and the statement of
authority in 2011. Auditors, however, may wish to consider
the material in the proposed IAPS 1000 as they plan and
perform their upcoming audit engagements. Comments on
the exposure draft are requested by February 11, 2011.
These exposure drafts can be accessed at www.iaasb.org/
ExposureDrafts.php.
IAASB Issues Two New Exposure Drafts
Linda de Beer
3. President’s Message
DECEMBER2010ANewsletterfortheInternationalAccountancyProfession
setting boards have made.
The report also made a
number of recommen-
dations for IFAC and the
standard-setting boards it
supports, focused on fur-
ther enhancing diversity,
transparency, and account-
ability, and we are working
with the Monitoring Group
to determine how to best
address these.
Going back a bit further,
in August the International
Integrated Reporting Com-
mittee (IIRC) was formed to create a globally accepted, inte-
grated reporting framework that brings together financial,
environmental, social, and governance information in a clear,
concise, and consistent format. As president of IFAC, I am serv-
ing as a member of the IIRC’s Steering Committee; Ian Ball,
IFAC CEO, is co-chair of the Working Group.
I welcome and applaud the accountancy
profession’s significant role in the evolu-
tion of sustainability and integrated report-
ing. As the reporters of performance and
accountability, the accountancy profession
must collaborate with others to develop
meaningful reporting models and metrics,
and the IIRC brings together a cross-section of representa-
tives from the corporate, accounting, securities, regulatory,
and standard-setting sectors, among others.
These are just three examples demonstrating how IFAC
and the accountancy profession are examining our contri-
bution to reporting and the value of the audit, and working
towards continuous improvement in the public interest.
There have been—and will continue to be—many more.
The world has in fact changed. We don’t want to simply
change with it. No, we want to lead the change. We want
to move past the financial and sovereign debt crises and be
part of a global solution that contributes to financial stability
and economic growth. It is by doing so that we will enhance
the relevance of the accountancy profession.
So let’s renew our commitment to continuous improve-
ment. Let’s work together to make the accountancy profession
even more valuable and relevant tomorrow than it is today.
Committing to Continuous Improvement
A
s I begin my term as IFAC president, and we move
into 2011, I have been reflecting on how much the
world changed during my term as deputy president
—and indeed, how much it continues to change.
The financial and sovereign debt crises consumed much
of our attention and energy over the past two years. And we
saw how seemingly isolated incidents—within companies
and within countries—can spread and intensify to affect
larger populations. In this environment, the financial and
business information that the accountancy profession pro-
vides has become much more important for sound decision
making and risk management.
We saw at the World Congress how vibrant our profession
is—how well-represented, strong, thoughtful and smart. We
also heard repeatedly that we must ask ourselves the tough
questions about the profession’s contribution to financial
and non-financial reporting in a more sustainable world, as
well as questions about the value of the audit. In order to
move forward as a profession, I believe we need to do just
that. We must demonstrate that we are part of a global solu-
tion that contributes to financial stability
and economic growth.
Let me give you just a few examples of
what I mean.
Just this month, IFAC responded to the
European Commission’s recent Green Paper-
Audit Policy: Lessons from the Crisis. The finan-
cial crisis presents a historic opportunity to
improve the global financial system. The accountancy profes-
sion contributes to economic growth and stability across a
wide range of activities—contributing to the efficient opera-
tions of capital markets and the public sector, supporting
the growth of small and medium enterprises, protecting the
interests of shareholders and the investing public, and enhanc-
ing financial stability—and IFAC believes that strengthening
audit as a high-quality professional service should be a key
priority and objective. Organizations must work together to
repair the widespread loss of public confidence in many areas
of the financial sector, and IFAC is committed to maintaining
and enhancing a constructive dialogue among all relevant
stakeholders.
In November, the Monitoring Group (a group of six inter-
national financial institutions: the Basel Committee on Bank-
ing Supervision, the European Commission, the Financial
Stability Board, the International Association of Insurance
Supervisors, the International Organization of Securities
Commissions, and The World Bank) issued its Review of the
IFAC Reforms—Final Report. The report reviewed the IFAC
Reforms, which aimed to improve the quality of financial
statement audits and restore and enhance public confidence
in financial reporting and auditing. In the report, the Moni-
toring Group recognized the successful breadth and depth
of the improvements IFAC and the independent standard-
We saw at the World
Congress how vibrant
our profession is—how
well-represented, strong,
thoughtful, and smart.
Göran Tidström
3
4. ANewsletterfortheInternationalAccountancyProfessionDECEMBER2010
Tim Forristal, Vice President, Education, at the Canadian Insti-
tute of Chartered Accountants, and Kazuo Hiramatsu, IAESB
member and IAAER Board of Advisors Member, led a panel
session on “Professional Accounting Education: Building its
Foundation.” Mark Allison said, “The IAAER World Congress
provided an opportunity for the IAESB to discuss issues on
professional accountancy education with important thought
leaders in the area of international accounting education and
research.” The IAESB session gave the conference attendees
an overview of what the IAESB is doing in anticipation of an
environment that is becoming increasingly globalized and
requiring a greater level of specialized knowledge and profes-
sional judgment.
In addition, the final papers for the ACCA/IAAER grant
program to inform the work of the IAESB were presented on
November 4. The four research projects provide valuable input
to IFAC member organizations and to the task of advancing
accounting education worldwide. The research findings of
these projects help to develop a better understanding of the
current state of accounting education in various countries and
the obstacles to the implementation of international standards.
The IAESB will endeavor to participate in more outreach
events in 2011 to promote the standards and encourage stake-
holder comments on the upcoming IES revisions.
4
International Accounting Education Standards Board News
IAESB Releases Exposure Draft of International Education Standard (IES) 7
T
he International Accounting Education Standards
Board recently released for public exposure a proposed
redrafting of IES 7, Continuing Professional Development:
A Program of Lifelong Learning and Continuing Development
of Professional Competence. The proposed redrafting of IES 7
aims to ensure that the public interest is met by assisting in the
ongoing development of Continuing Professional Develop-
ment (CPD) systems and compliance mechanisms worldwide.
The IAESB has recently revised its Framework document,
which sets out the underlying concepts and principles for the
IESs. One of the primary objectives of the revised Framework
document has been to include the various roles of profes-
sional accountants. The Framework identifies general educa-
tion, professional accounting education, practical experience,
and assessment as components of the learning and develop-
ment of a professional accountant. Learning and develop-
ment occurs throughout an individual’s career and ensures
the development and maintenance of competence required
for performing the various roles of professional accountants.
As a result, the standards will need to be revised to ensure
consistency with the principles and concepts introduced in
the new Framework document.
In response to this revised Framework, the IAESB believes
that by beginning with a redrafting of IES 7, it will encourage
a more innovative approach to meeting CPD needs. The goal
is to achieve this by confirming the existing requirements of
the standard, particularly in relation to the range of available
approaches to CPD systems and the recommended measure-
ments for appropriate CPD activity over time.
The release of this exposure draft is the first in a series of
planned revisions of the suite of International Education Stan-
dards over the coming year. The IAESB plans to draw interna-
tional attention to CPD not only through the redrafting of IES 7,
but also by revising existing standards that address prequalifica-
tion for accounting professionals and the competencies of an
auditor.
The IAESB invites all stakeholders to comment on its propos-
als. To access the exposure draft (available December 10, 2010)
and submit a comment, visit the IAESB’s website at www.ifac.
org/Education/ExposureDrafts.php. Comments on the exposure
draft are requested by March 8, 2011.
W
ith the recent release of IES 7, the importance of Con-
tinuing Professional Development (CPD) is a message
IAESB has been sharing with member bodies and aca-
demia worldwide. One such opportunity was organized by the
Institute of Certified Public Accountants of Singapore (ICPAS).
More than 1,200 participants attended the Singapore Accoun-
tancy Convention and the convention’s gala dinner, making it
one of ICPAS’ largest and most successful events. Held at the
MarinaBaySandsExpo&ConventionCentreonNovember2,the
event brought together a distinguished lineup of speakers and
panelists from around the world. Professor Mark Allison, IAESB
Chairman and Executive Director, Education, at the Institute of
CharteredAccountantsofScotland,highlightedthekeyrevisions
to professional education standards in “A Journey of Lifelong
Learning and Continuing Development of Professional Com-
petence.” Professor Kim Langfield-Smith, IAESB member and
Deputy Dean (Research) and Professor of Management Account-
ing at Monash University, explored the different approaches to
the assessment of competence used by professional accounting
bodies globally. And Mr. Mark Spofforth, IAESB member and Vice
President of the Institute of Chartered Accountants in England
and Wales, discussed the latest changes in professional devel-
opment requirements. All IAESB presentations were very well
received. “Events like the Singapore Accountancy Convention
confirm the importance of continuous improvement of compe-
tence and reinforce a professional accountant’s commitment to
lifelong learning,” stated Mark Allison.
The IAESB’s next stop in Singapore was the International
Association for Accounting Education and Research (IAAER)
11th World Congress of Accounting Educators and Research-
ers. This congress was a two day event held November 4–6 at
the Singapore Management University campus. Mark Allison,
Chair of the IAESB, Karen Pincus, Deputy Chair of the IAESB,
ICPAS Accountancy Convention and IAAER World Congress
5. DECEMBER2010ANewsletterfortheInternationalAccountancyProfession
5
International Ethics Standards Board for Accountants News
IESBA Finalizes Strategic Plan and 2011–2012 Work Strategy
IESBA Staff Issues Q&A to Support Implementation and Adoption of the
IESBA Code
The Q&A can be accessed from the IESBA webpage at
www.ifac.org/ethics. The publication supplements pre-
viously released adoption and implementation support
materials. These materials include PowerPoint presenta-
tions that provide an overview of the Code and in-depth
discussions of the independence provisions, and a short
document containing an overview of the independence
requirements relating to partner rotation, cooling off
period, provision of non-assurance services, fees and com-
pensation, and evaluation policies. Additionally, compari-
sons of the 2009 and 2006 Codes and a template that can
be used to compare the requirements of the Code to those
in another jurisdiction are available.
The IESBA plans to monitor adoption and implementa-
tion of the Code by IFAC member bodies with a view to
understanding, and assisting member bodies to address,
the challenges they face in that process. IESBA staff would
welcome any suggestions for additional materials to sup-
port adoption and implementation.
T
he IESBA is finalizing its Strategy and Work Plan in
response to comments it received on exposure of the
document. There are compelling reasons for facilitat-
ing the convergence of international and national ethical
standards and, in particular, auditor independence require-
ments. The IESBA believes the changes it made to The Code
of Ethics for Professional Accountants (the Code) in 2009 have
resulted in a more robust Code that increases the protec-
tion of the public interest. Its strategy over the next few
years is to build upon the strong base established by the
revised Code. This includes significantly increasing efforts
to promote the benefits of convergence to a single set
of high-quality ethical standards, including independence
requirements, and engage in an active dialogue with key
stakeholders of the IESBA to understand their perspectives
on convergence and on how the Code can be the catalyst to
achieve this objective. The work plan supports this strategy.
The IESBA will also continue work on the two projects
that it commenced in late 2009:
• Conflicts of Interest – The IESBA will consider whether to
expand the guidance in the Code on conflicts of interest.
• Responding to Fraud or Illegal Acts – The IESBA will
provide additional guidance for professional accoun-
tants on how to respond in situations where they
encounter a suspected fraud or illegal act.
Also approved by the IESBA is a new project to re-con-
sider the provisions in the Code that address an inadvertent
violation of the Code.
In addition, the IESBA will commence a research project
to determine and understand unique and challenging
issues faced by SMEs and SMPs in complying with the Code.
To support adoption and implementation of the Code,
the IESBA staff have issued materials, located on its web-
site at www.ifac.org/ethics. The IFAC Compliance Advisory
Panel (CAP) oversees the implementation and operation
of the IFAC Member Body Compliance program. The IESBA
plans to liaise closely with the CAP to understand the
nature and extent of member body implementation of
the Code with a goal of identifying, understanding, and
helping member bodies address significant challenges to
further adoption of the Code.
he staff of the International Ethics Standards Board
for Accountants (IESBA) has released a Questions and
Answers (Q&A) publication to support implementa-
tion and adoption of the Code of Ethics for Profes-
sional Accountants (the Code) which is effective on January
1, 2011. The Q&A addresses some of the issues that have
been raised by member bodies in the process of adopting
and implementing the Code. Topics addressed in the Q&A
include:
• Application of the conceptual framework approach;
• Application of some of the non-assurance services
provisions including: emergency accounting and
bookkeeping, taxation services, valuation services;
• Implementation of the requirement for a pre- or post-
issuance review, to be performed by an accountant
who is not a member of the firm, when total fees from
a public interest entity audit client exceed more than
15% of the total fees of the firm; and
• Application of the definition of a key audit partner.
T
IFAC is preparing to redesign its website (www.ifac.org)
and we would like your input.
Please let us know if you have any ideas or suggestions.
You can contact us at communications@ifac.org.
IFAC Website Redesign
6. DECEMBER2010ANewsletterfortheInternationalAccountancyProfession
ANewsletterfortheInternationalAccountancyProfessionDECEMBER2010
World Congress of Accountants
Kuala Lumpur, Malaysia November 8–11, 2010
6 7
IFAC Immediate Past President Robert Bunting hands over the reins
to IFAC President Göran Tidström at the 2010 Council Meeting
WCOA 2010 attracted over 6,000 attendees
A dancing lesson at the Gala Dinner
Special Malaysian drum performance at the Opening Ceremony Robert Bunting (L) and Göran Tidström (R) water trees as Ian Ball and MIA officers look on. IFAC and the MIA planted 600 trees as a part of the
sustainability measures undertaken at WCOA
Panelists at the “Accountants: Sustaining Value Creation in the Borderless
Economy” Plenary Session
Attendees mingle at the Opening Reception
IFAC staff assist delegates at the IFAC–MIA booth
7. ANewsletterfortheInternationalAccountancyProfessionDECEMBER2010
International Public Sector Accounting Standards Board News
Conceptual Framework Documents Exposed for Comment
A
s part of The International Public Sector Accounting
Standards Board’s (IPSASB) Public Sector Concep-
tual Framework Project, IPSASB has just released
for comment an exposure draft (ED) and two consultation
papers.
Conceptual Framework Exposure Draft 1 (CF-ED1), Con-
ceptual Framework for General Purpose Financial Reporting
by Public Sector Entities: Role, Authority, and Scope; Objec-
tives and Users; Qualitative Characteristics; and Reporting
Entity, refines the issues highlighted in a Consultation Paper
published in 2008. The ED proposes that the objectives of
financial reporting should embrace not only decision mak-
ing, but also accountability, and puts forward a view that
the scope of financial reporting should extend beyond the
traditional financial statements to include financial and
non-financial quantitative and qualitative information.
8
IPSASB’s Study 14 – Revised Edition Coming Soon
T
he International Public Sector Accounting Standards
Board (IPSASB) is set to release a revised version of
Study 14, Transition to the Accrual Basis of Accounting:
Guidance for Governments and Government Entities, in Janu-
ary 2011. Study 14 provides guidance on how to migrate to
the accrual basis of accounting in accordance with Interna-
tional Public Sector Accounting Standards (IPSASs).
ThisneweditionofStudy14includessubstantialchanges
from the previous edition and demonstrates the IPSASB’s
commitment to provide support for IPSAS implementation.
It covers all 31 IPSASs issued as of March 2010. This includes
The Consultation Paper Elements and Recognition
considers both asset-liability and revenue-expense led
approaches to financial statements and considers the key
characteristics of assets, liabilities, revenue and expenses.
The Consultation Paper Measurement of Assets and Lia-
bilities in Financial Statements considers the measurement
bases that may be appropriate for the elements that are
recognized in financial statements. It discusses historical
cost, market value, and replacement cost and then exam-
ines deprival value as an approach to select the most rel-
evant measurement basis.
To access the exposure draft and consultation papers
(available December 15, 2010), or to submit a comment,
visit the IFAC website at www.ifac.org/Guidance/EXD-Out-
standing.php. Comments on the exposure draft and con-
sultation papers are requested by June 15, 2011.
IFAC at XX INCOSAI
I
NCOSAI was held November
17–27 in Johannesburg, South
Africa. The Congress had three
themes this year: The Value and
Benefits of Supreme Audit Insti-
tutions, Environmental Auditing
and Sustainable Development,
and the South African Declaration
on the International Standards of
Supreme Audit Institutions (ISSAIs).
IPSASBChairAndreasBergmann
and IAASB Chair Arnold Schilder
presented at the panel session on
“Collaboration with Standard-Set-
first-time coverage of the suite of five new IPSASs issued
in late 2009 and early 2010: IPSAS 27, Agriculture, IPSAS
28, Financial Instruments: Presentation, IPSAS 29, Financial
Instruments: Recognition and Measurement, IPSAS 30, Finan-
cial Instruments: Disclosures, and IPSAS 31, Intangible Assets.
Study 14 is relevant to governments and other public sec-
tor entities, including international governmental organi-
zations. It may also assist governments and government
entities complying with the IPSAS financial reporting
requirements, under the cash basis of accounting, in mak-
ing the additional encouraged disclosures.
ting Bodies” and their presentations were of particular inter-
est to delegates representing Supreme Audit Institutions
(SAIs) from around the globe.
The IFAC booth saw much foot traffic and interest.
Delegates were provided with memory sticks containing
the Handbook of International Public Sector Accounting
Pronouncements, the IAASB brochure The Clarified Interna-
tional Standards on Auditing, and fact sheets on the IAASB,
IAESB and IPSASB.
XX INCOSAI ended on a high note with the endorsement
of ISSAIs for financial audit by the INTOSAI (International
Organization of Supreme Audit Institutions) Governing
Board, the adoption of the Johannesburg Accords, and the
INTOSAI Strategic Plan for 2011–2016.
8. DECEMBER2010ANewsletterfortheInternationalAccountancyProfession
9
Professional Accountancy Organization Development Committee News
Developing the Profession in Afghanistan
I
n October, IFAC Board Member Mr. Asad Ali Shah trav-
eled to Kabul, Afghanistan to present at the World Bank’s
Dissemination Workshop for the Afghanistan Report on
the Observance of Standards and Codes—Accounting and
Auditing (ROSC–A&A). This workshop, attended by Govern-
ment of Afghanistan representatives, World Bank person-
nel, and various other stakeholders, was held at the World
Bank Afghanistan country headquarters.
Working together with IFAC’s Professional Accountancy
Organization Development Committee (PAODC), previ-
ously known as the Developing Nations Committee, and
with the support of the Institute of Chartered Accountants
of Pakistan, Mr. Shah delivered a one hour presentation
regarding the role of IFAC and the PAODC in helping coun-
In June 2010, the IFAC Developing Nations Committee (DNC) Review Task Force presented
their report to the IFAC Board. At that time, the Board voted to approve the 13 recommendations
provided in this report, including the recommendation to change the name of the DNC to the
Professional Accountancy Organization Development Committee (PAODC) effective January 1,
2011. The rationale behind this name change is to emphasize the strengthened focus of committee
efforts on developing and strengthening Professional Accountancy Organizations (PAOs) around
the world so that they may act as “Centers of Excellence” for their individual countries and regions,
contributing to healthy private and public sector financial performance, overall economic growth
and social progress.
Developing Nations Committee to Become
Professional Accountancy Organization Development Committee
tries establish and develop strong Professional Accoun-
tancy Organizations (PAOs). This presentation emphasized
the importance of a strong accountancy profession and
its interrelationship with robust accounting and auditing,
overall economic growth, and social progress. Mr. Shah’s
presentation, as well as his active contribution to group
discussions on the ways forward for Afghanistan, provided
useful input to the country’s efforts in developing a road-
map for implementing the ROSC–A&A recommendations.
IFAC congratulates the Government of Afghanistan and
the World Bank for organizing this very successful event,
and looks forward to continued collaboration with the
development of the profession and implementation of the
ROSC–A&A recommendations in Afghanistan.
by shifting focus from
the process of mov-
ing from adoption, to
the implementation,
of international stan-
dards. Participants interacted in 18 different conference
sessions, which were conducted in an innovative open
roundtable format. Sessions focused on a variety of aspects,
including ISA and IPSAS implementation, public oversight of
the profession, the importance of professional certification,
as well as sessions on the implementation of IFRS for SMEs.
Feedback from delegates was overwhelmingly positive.
It illustrated the crucial role that this year’s CReCER confer-
ence and its related activities played in helping to facilitate
an increase in the knowledge and understanding of chal-
lenges and key success factors of adoption and implemen-
tation of international standards.
T
his year, IFAC partnered with the Inter-American
Development Bank (IDB), the World Bank, Global Pub-
lic Policy Committee (GPPC), and Colegio de Contado-
res Publicos y Autorizados de Panama (CCPAP) to celebrate
another successful event in Latin America with its fourth
annual CReCER Leadership and Commitment 2010 Regional
Event, held October 5, 2010. This year’s focus was to attract
high-level country decision leaders and policymakers and
bring together ministers of finance, CEOs, auditors general,
and other high-level officials from around the globe in
Panama City, Panama.
Founded in 2006, the CReCER (the Spanish acronym
for Accounting and Accountability for Regional Economic
Growth) Initiative has been instrumental in jump-starting
the awareness and adoption of international standards in
the Latin American and Caribbean region. With the adop-
tion of international standards currently underway in the
region, this year’s event built on previous years’ success
IFAC “Cultivates” Success in Latin America and the Caribbean with the 2010
Regional CReCER Leadership and Commitment Event
9. ANewsletterfortheInternationalAccountancyProfessionDECEMBER2010
Professional Accountants in Business Committee News
Integrating the Business Reporting Supply Chain
A
s a follow-up to its 2009 study, Developments in the
Financial Reporting Supply Chain—Results from a
Global Study among IFAC Member Bodies, IFAC inter-
viewed 25 key business leaders from around the globe on
how to further improve business reporting. Representing
each of the links in the financial reporting supply chain—
preparers, directors, auditors, standard setters, regulators,
and investors—interviewees provided recommendations
on how to further improve key areas that are fundamental
to strong business reporting: corporate governance, finan-
cial reporting, and financial auditing, areas which have
faced additional challenges in light of the recent financial
crisis. The final report, to be issued soon as a digital publica-
tion, will feature a summary of recommendations, key cur-
rent initiatives by IFAC and other organizations in relevant
areas, and anticipated next steps.
Key recommendations include overall consensus on the
development of an integrated business reporting model
to improve the usefulness of business reports and to
increase the relevance and accessibility of key performance
indicators for a broad range of stakeholders. The auditing
profession should take advantage of this extended format
by expanding the scope of the audit to include the non-
10
financial information that would be included in such an
integrated report, according to interviewees.
In the area of corporate governance, interviewees rec-
ommend the implementation of governance codes that
are principles-based and stakeholder driven, and that
legislators avoid the temptation to overly regulate this
area in response to the financial crisis. They agreed that
further international convergence of governance codes
and regulation is needed to curb the costs and complexity
of compliance. In addition, more independence should be
required of boards of directors and executive remunera-
tion should be aligned with the organization’s sustainable
performance.
Interviewees stressed the need to increase the relevance
and understandability of financial reports, which will start
with simplifying the standards on which the reports are
based. Standard setters should also consider ways to ease
the burden of financial reporting for smaller and non-listed
entities and promote further convergence to international
financial reporting standards.
Look for the full report featuring these and additional
recommendations, IFAC’s business reporting series, and
interview transcripts, at www.ifac.org/frsc.
Sustainability News
I
n January 2011, IFAC and The Prince’s Accounting for
Sustainability (A4S) Project will launch the IFAC-A4S
community website that will serve as a collaborative
platform with interactive discussion forums, blogs, and wiki
functionality. The site will enable IFAC members, profes-
sional accountants in business, and others to share ideas,
experiences, and best practices. Featuring guest bloggers,
the site will provide a venue for dialogue on how environ-
mental and social performance can be better connected
with strategy, operations, and financial performance.
In August, The Prince’s Accounting for Sustainability
(A4S) Project and the Global Reporting Initiative (GRI)
announced the formation of the International Integrated
Reporting Committee (IIRC). The committee is composed
of a Steering Committee and a Working Group; the latter
will be co-chaired by IFAC CEO Ian Ball. The objective of the
IIRC is to create a globally accepted framework for account-
ing for sustainability that brings together financial, envi-
ronmental, social, and governance information in a clear,
concise, consistent, and comparable format.
The IFAC Sustainability Framework, issued in 2009, is
currently undergoing revisions to provide further guid-
ance on embedding sustainability in an organization and
integrated reporting. A new reporting section will focus
on developing a reporting strategy and how integrated
reporting might be applied to improve the usefulness of
business reporting. The Framework will have a renewed
focus on integrating sustainability into an organization’s
mission, goals and objectives, strategy, and operations, and
will contain updated examples. The updated Framework
will be issued as a digital publication and will be available
in January 2011.
The Climate Disclosure Standards Board (CDSB), in which
IFAC participates, has issued the Climate Change Report-
ing Framework 1.0. The objective of the framework is to
provide investors with information of value on how climate
change affects organizations’ strategy, performance, and
prospects. Application of the framework is voluntary and
is to be used for the disclosure of climate change-related
information in, or linked to, mainstream financial reports.
To find more information on IFAC’s sustainability initia-
tives, see www.ifac.org/PAIB/sustainability-and-corporate-
responsibility.php.
10. DECEMBER2010ANewsletterfortheInternationalAccountancyProfession
11
Small and Medium Practices Committee News
SMP Committee Releases Updated ISA Guide and QC Guide
I
n October, the SMP Committee issued the second edition
of its Guide to Using International Standards on Auditing in
the Audits of Small- and Medium-Sized Entities (ISA Guide).
The guide is intended to help practitioners understand and
efficiently apply the clarified International Standards on Audit-
ing (ISAs). This edition features an increased focus on SME
audits, an updated design, and two integrated case studies,
one of which focuses on the audit of a micro-entity.
The SMP Committee has also issued the second edition
of its Guide to Quality Control for Small- and Medium-Sized
Practices (QC Guide). The guide is intended to help SMPs
understand and efficiently apply the redrafted International
Standard on Quality Control (ISQC) 1, Quality Control for
Firms that Perform Audits and Reviews of Financial Statements,
and Other Assurance and Related Services Engagements. The
new edition conforms to the revised and redrafted Code
of Ethics for Professional Accountants and includes various
improvements based on user feedback. It features an inte-
grated case study, some checklists and forms, and two
sample quality control manuals. To access these resources
see the SMP section of the IFAC Publications and Resources
site: web.ifac.org/publications.
term. In the end, the team finally agreed to use the
translated term “équipe d’audit,” a term that could be
technically accepted and understood by users in the
profession in various countries.
Throughout the translation process, the team had
the benefit of being able to discuss the intent and
tone of the original pronouncement with French speak-
ing members of IESBA in order to ensure the correct
understanding and appropriate translation. The team
participantswerealsoabletomeetinperson,whichwas
of significant value in order to foster strong and sustain-
able working relationships.
Building upon their success with this project, the
Frenchtranslationteamhasthefollowingtipsforachiev-
ing one high-quality translation per language:
• Stay focused on the written documents. When
oral discussions start, there is a risk that a meeting
may finish with more questions and less solutions
then when it started.
• Ensure the team represents key stakeholders and
roles. Linguists can often suggest practical solutions.
• Keep the size of the team involved to one that is
manageable.
• Do not underestimate the time involved.
IFAC is extremely grateful to those involved in coor-
dinating, performing and reviewing this high-quality
French translation. For an overview of available transla-
tions of the standards and publications issued by IFAC,
please visit our Translations Database: www.ifac.org/
Translations/database.php
Several IFAC member bodies successfully collabo-
rated to achieve a single, high-quality French transla-
tion of the Code of Ethics for Professional Accountants,
Revised July 2009, of the International Ethics Standards
Board for Accountants (IESBA). These five member
bodies include la Compagnie Nationale des Com-
missaires aux Comptes (CNCC-France) and le Con-
seil Supérieur de l’Ordre des Experts-Comptables
(CSOEC-France), with participation from l’Institut des
Réviseurs d’Entreprises (IBR-IRE-Belgium), l’Institut
Canadien des Comptables Agréés (ICCA-Canada) and
l’Ordre National des Experts-Comptables du Cam-
eroun (Institute of Chartered Accountants of Cam-
eroon). The work was coordinated by Délégation
Internationale pour l’Audit et la Comptabilité (DIPAC-
France). The translation was performed by a single
translator and then reviewed by representatives from
the above-mentioned member bodies.
The team’s dedication to the project was a key
element that contributed to success in achieving this
single French translation. When regional differences
in terminology were identified, the team worked
together to find acceptable solutions that would faith-
fully represent IESBA’s intent.
The process wasn’t always easy. One challenge
involved so-called “false cognates,” whereby words
may appear to be very similar in English and French,
but in reality they have very different meanings. Simi-
larly, certain French words have very different mean-
ings from one region to another. An example of this
is the term “audit team.” In reviewing the draft trans-
lation, different translations were proposed for this
Upcoming SMP Forum
The next IFAC SMP Forum will be held on March 21, 2011, in Istan-
bul, Turkey. The event will be held in cooperation with the Expert
Accountants’ Association of Turkey (EAAT), the Union of Cham-
bers of Certified Public Accountants of Turkey (TÜRMOB), and
the Fédération des Experts Comptables Méditerranéens (FCM).
IFAC member bodies are invited to send up to five representa-
tives each to the forum. The event will feature panel sessions
and discussions relevant to current and future policy and regula-
tory developments and on the role of SMPs in providing high-
quality professional services to SMEs. For more information, see
www.ifac.org/SMP. Following the SMP Forum, the next SMP Com-
mittee meeting will be held in Istanbul on March 22–23, 2011.
Case Study: Experience of French-Speaking Member Bodies in Achieving a Single, High-
Quality Translation of the IESBA Code of Ethics for Professional Accountants
