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
IFAC Applauds Release of International Integrated Reporting Framework
IFAC - 4/16/2013
IFAC applauded the release of the proposed International Integrated Reporting Framework by the International Integrated Reporting Council (IIRC). The Framework is expected to be a critical tool for businesses as they create integrated reports and drive integrated thinking in their organizations.
Companies Lagging on Business Model Reporting; Background Paper Released to Tackle the Issue
IFAC - 3/26/2013
The Chartered Institute of Management Accountants (CIMA), the International Federation of Accountants (IFAC), and PwC, at the request of the International Integrated Reporting Council (IIRC), released a background paper, Business Model, which highlights the business model as being at the heart of integrated reporting.
IAASB further strengthens standard on using work of internal auditors; addresses use of direct assistance
IFAC - 3/19/2013
In follow-up to its 2012 release of stronger standards dealing with the external auditor’s use of an internal audit function’s work, the International Auditing and Assurance Standards Board (IAASB) issued new requirements and guidance that address the auditor’s responsibilities if using internal auditors to provide direct assistance under the direction, supervision, and review of the external auditor for purposes of the audit.
IESBA strengthens key sections of Code of Ethics for Professional Accountants
IFAC - 3/19/2013
IFAC's International Ethics Standards Board for Accountants (IESBA) released strengthened provisions in its Code of Ethics for Professional Accountants (the Code) to address conflicts of interest and a breach of a requirement of the Code. It also released amendments to the definition of the term “engagement team” in the Code. The amendments clarify the relationship between internal auditors providing direct assistance and the meaning of an engagement team under the IESBA Code.
IAASB seeks input on strategic review
IFAC - 3/11/2013
IFAC's 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. It is seeking the input of interested parties at this early stage to identify key issues for discussion. Comments are requested by May 7, 2013.
IFAC publishes results of its "2012 Global Leadership Survey of the Accounting Profession"
IFAC - 3/5/2013
The IFAC has released the results of its 2012 IFAC Global Leadership Survey of the Accounting Profession, which includes input from IFAC member bodies around the world. The survey elicited respondents' opinions regarding perceptions of the accountancy profession and the most significant issues facing global accountancy in 2013. Of the 22 issues that were presented for consideration, respondents identified five top concerns: (1) the needs of small- and medium-sized practices and small- and medium-sized entities; (2) the reputation and credibility of the profession; (3) issues related to the European Union (EU) draft legislation; (4) public sector financial management and sovereign debt issues; and (5) the difficult global financial climate.
G-20 delegates outline decision to address transparency and comparability of public sector reporting
IFAC - 3/4/2013
In its final communiqué for their February 15-16, 2013, meeting, the G-20 Finance Ministers' and Central Bank Governors outlined their decision to address transparency and comparability of public sector reporting. The G-20 delegates called on the IMF 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.
Exposure Drafts
Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Presentation in General Purpose Financial Reports
IPSASB - 4/17/2013
IFAC's International Public Sector Accounting Standards Board (IPSASB) released for comment the fourth exposure draft (ED) related to its project to develop a conceptual framework for the general purpose financial reporting of public sector entities. This ED describes presentation as the selection, location and organization of information that is displayed and disclosed in General Purpose Financial Reports (GPFRs). GPFRs include both financial statements and other reports providing additional information that enhances, complements, and supplements the financial statements. [Comments due - August 15, 2013]
IAASB Consultation Paper: A Framework for Audit Quality
IAASB - 1/15/2013
IFAC's International Auditing and Assurance Standards Board (IAASB) released for public comment a new consultation paper titled A Framework for Audit Quality. 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 Framework for Audit Quality describes the input and output factors that contribute to audit quality at the engagement, audit firm and national levels. It also demonstrates the importance of appropriate interactions among stakeholders and the importance of various contextual factors. [Comments due - May 15, 2013]
PwC Comment letters
PwC Comments on IAASB Consultation Paper: Enhancing the Value of Auditor Reporting: Exploring Options for Change
PwC - 10/26/2011
PwC global network of firms believes that the time is right to significantly enhance auditor reporting. Valuable enhancements can be made now that move us some way to achieving the goal of more informative and valuable auditor reporting. As solutions are developed, it is critical that there be active, continuous and open dialogue amongst auditing standard setters, regulators, users and other stakeholders. PwC global network urges the IAASB to work in collaboration with the PCAOB in relation to their respective consultation papers to develop solutions that work globally.