International Federation of Accountants (IFAC)

Website: www.ifac.org

IFAC’s mission is to serve the public interest by contributing to the development, adoption and implementation of high-quality international standards in auditing and assurance, public sector accounting, ethics, and education for professional accountants.

Recent Developments – Past year


Select News Releases

IESBA nears finalization of revised long association provisions in Ethics Code; re-proposes enhancements to address limited set of remaining issues
IFAC - 02/04/2016
IFAC's International Ethics Standards Board for Accountants (IESBA) released for public comment the Exposure Draft, Limited Re-exposure of Proposed Changes to the Code Addressing the Long Association of Personnel with an Audit Client (the ED). The ED relates to the IESBA’s project to develop more robust and comprehensive provisions dealing with the long association of personnel with an audit or assurance client. It contains a basis for conclusions regarding proposals that have been finalized, as well as the limited re-exposure of three remaining issues.

IFAC issues report on high-quality global regulation
IFAC - 02/03/2016
IFAC published a report titled From Crisis to Confidence: A Call for Consistent, High-Quality Global Regulation, calling for political leaders and governments around the world to follow ten principles for consistent, high-quality global regulation, to aid global economic growth. The principles are intended to help guide regulators toward better decisions and protect the global economy from the dangers posed by a patchwork approach to regulation.

IPSASB proposes revisions to the cash basis IPSAS
IFAC - 02/03/2016
The IPSASB released for comment Exposure Draft (ED) 61, Amendments to Financial Reporting under the Cash Basis of Accounting. The Cash Basis IPSAS has two parts. Part 1 identifies requirements that a reporting entity needs to adopt to claim that its financial statements comply with the IPSAS. It presently includes requirements for preparation of consolidated financial statements and for disclosure of information about external assistance and payments made by third parties. ED 61 proposes that these requirements be revised, recast as encouragements, and moved into Part 2 of the IPSAS. Part 2 identifies encouraged disclosures that an entity may choose to provide, but which are not required to claim compliance with the IPSAS. 

IPSASB publishes exposure draft on public sector combinations
IFAC - 01/28/2016
IFAC's International Public Sector Accounting Standards Board (IPSASB) published Exposure Draft 60, Public Sector Combinations, intended to classify public sector combinations as either amalgamations or acquisitions, using a rebuttable presumption approach that takes into account control and other factors.

IAASB issues final amendments on auditor reporting on special purpose financial statements
IFAC - 01/07/2016
IFAC's International Auditing and Assurance Standards Board (IAASB) released two revised International Standards on Auditing (ISAs) on reporting on special purpose financial statements. Reporting on special purpose financial statements is linked to the IAASB’s new and revised Auditor Reporting standards issued in January 2015, in particular ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements, and new ISA 701, Communicating Key Audit Matters in the Independent Auditor’s Report. The amendments to ISA 800 and ISA 805 are limited to auditor reporting and are not intended to substantively change the underlying premise of these engagements in accordance with the extant ISAs.

IESBA issues paper on ethical considerations relating to audit fee setting in the context of downward fee pressure
IFAC - 01/06/2016
The staff of the IFAC"s International Ethics Standards Board for Accountants (IESBA) have developed a new publication, Ethical Considerations Relating to Audit Fee Setting in the Context of Downward Fee Pressure, in response to stakeholder concerns about downward pressure on fees and its potential to adversely impact audit quality. The publication highlights important considerations in the Code of Ethics for Professional Accountants (the Code) for auditors in relation to the setting of audit fees.

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Exposure Drafts

IESBA Exposure Draft: Limited Re-exposure of Proposed Changes to the Code Addressing the Long Association of Personnel with an Audit Client
IFAC - 02/04/2016
This Exposure Draft relates to the IESBA’s project to develop more robust and comprehensive provisions dealing with the long association of personnel with an audit or assurance client. It contains a basis for conclusions regarding proposals that have been finalized, as well as the limited re-exposure of three remaining issues.

IPSASB Exposure Draft 61, Amendments to Financial Reporting under the Cash Basis of Accounting
IFAC - 02/03/2016
This Exposure Draft proposes amendments to financial reporting under Cash Basis IPSAS. The Cash Basis IPSAS has two parts. Part 1 identifies requirements that a reporting entity needs to adopt to claim that its financial statements comply with the IPSAS. It presently includes requirements for preparation of consolidated financial statements and for disclosure of information about external assistance and payments made by third parties. ED 61 proposes that these requirements be revised, recast as encouragements, and moved into Part 2 of the IPSAS. Part 2 identifies encouraged disclosures that an entity may choose to provide, but which are not required to claim compliance with the IPSAS. [Comments are due - July 31, 2016]

IPSASB Exposure Draft 60: Public Sector Combinations
IFAC - 01/28/2016
This Exposure Draft classifies public sector combinations as either amalgamations or acquisitions, using a rebuttable presumption approach that takes into account control and other factors. The ED proposes the use of the “modified pooling of interests” method of accounting for amalgamations, while the “acquisition” method of accounting (which involves measuring assets and liabilities at fair value) is proposed for acquisitions. [Comments are due - June 30, 2016]

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