IFAC NEWS | The World of Accounting For Professional Accountants

 

Introduction 

• Good afternoon and thank you for that kind introduction.
• Before I begin, let me first express my deep appreciation to IOSCO for inviting me to speak here today and for sponsoring this very important conference.

Thank you, Stephan. It's a pleasure to be here this afternoon and good afternoon to you. Like you, I'm contemplating a longer stay here than I anticipated, but it's OK. In fact, it's wonderful.

As you know, [and] as I'm sure speakers have mentioned earlier in this conference, Venice is the place where accounting was invented by Luca Pachioli. And, of course, Venice is famous for a Venetian merchant who opened up the Eastern routes of the trade: Marco Polo. But I'll come back to that in a minute.

First, I'd like to congratulate our host, CNDCEC [Consiglio Nazionale dei Dottori Commercialisti e Degli Esperti Contabili]. I'm sorry, Claudio, I can't say the whole name. I'm an American and Italian just does not flow from my lips. But I would like to thank you for your interest in SMP [small and medium practice] and SME [small- and medium-sized entity] issues.

I know that Italy is a hotbed of entrepreneurialism, where small companies manufacture very high-quality consumer goods and sell them throughout the world. Most of those companies are family owned and most of those companies are served by SMPs.

Italy contributes greatly to IFAC. We have a number [of members] from the [Italian] member body on the IFAC Board and, of course, we have a very important member on the SMP Committee. Italy has also done the translation of the ISAs into Italian, which [will be] critical for adoption of the ISAs by the European Union.

I'd also like to thank FEE [Fédération des Experts Comptables Européens]. I believe that FEE defines for IFAC what a regional organization ought to be. It's certainly the largest and, I believe, the best organized of all of the IFAC-recognized regional bodies. I congratulate you on holding this conference, and I believe that you are doing something very important for one of my pet projects.

Why is it one of my pet projects? I do not pretend to be an SMP. My firm has over 1,500 professionals in it. But, we serve SMEs. We serve a lot of SMEs . We believe they are critical to the functioning of the U.S. economy and critical to the functioning of almost all economies, and I will again come back to that.

Video Interviews from the Event

http://www.press.cndcec.it/Portal/WebTV/Evento.aspx?Id=e24fdc3c-cfc1-4056-83fa-62dcda1f5830

http://www.press.cndcec.it/Portal/WebTV/Evento.aspx?Id=106cea8b-75bc-4b8d-89e2-bab5e0d6a698

IFAC today released for comment an exposure draft (ED) setting out its proposed 2010-2012 strategy and work plan prepared by its Professional Accountants in Business (PAIB) Committee.

The proposed plan outlines the direction and priorities of IFAC's services relevant to professional accountants in business. This public consultation is a first-time opportunity for IFAC member bodies and other key stakeholders to comment on the proposed vision, strategic direction, and corresponding work plan for this key constituency.

The proposed strategic direction focuses on enhancing the profile, influence, and relevance of professional accountants in business and identifies two specific objectives:

The International Public Sector Accounting Standards Board (IPSASB) published today its 2010 Handbook of International Public Sector Accounting Pronouncements. In two volumes, the handbook contains all current IPSASB pronouncements, including 31 accrual-based standards and the IPSASB's cash basis standard. Five of these standards were approved by the IPSASB in 2009, including requirements and guidance for all aspects of accounting for financial instruments, as well as intangible assets and agriculture.

The International Federation of Accountants (IFAC) and The Prince's Accounting for Sustainability (A4S) Project have entered into a memorandum of understanding to support the global accountancy profession's role in developing sustainable organizations.

Organizations are increasingly seeking new ways to maintain their economic performance and contributions to society in the face of challenge and crisis. Perhaps the most critical challenge facing business and society generally is to live within our ecological limits, while continuing to enjoy economic prosperity. IFAC and A4S believe that an essential part of the answer lies in going beyond traditional ways of thinking about performance and embedding sustainability into strategy, governance, performance management, and reporting processes.

Key priorities to support the work of professional accountants in embedding sustainable practices include:

• Raising awareness and facilitating sharing and collaboration across the global accountancy community, for example, through the development of a community website for professional accountancy organizations, business leaders, academics, and other experts to exchange ideas and share good sustainability practice;
• Establishing an international integrated reporting committee to develop a new reporting model that will better reflect the interconnected impact of financial, environmental, social, and governance factors on the long-term performance and condition of an organization; and
• Incorporating accounting for sustainability within professional training and education.
  

Professional accountants in organizations support the sustainability efforts of the organizations they work for in leadership roles in strategy, governance, performance management, and reporting processes. They also oversee, measure, control, and communicate the long-term sustainable value creation of their organizations.

Paul Druckman, Chairman of the A4S Executive Board, states, "We will only be able to achieve a sustainable future if all organizations, and all individuals within those organizations, recognize the role that they can and need to play. Effective action by the accounting and finance community to better account for sustainability is an essential part of the response. The collaboration between IFAC and A4S will help to make this a reality."

"Professional accountants play a vital role in helping to create sustainable organizations and markets, especially in the areas of accountability and measurement of results," says Robert Bunting, President of IFAC. "I am delighted that our two organizations are working together to advance the role of sustainability leadership and reporting at a global level, fostering collaboration with key stakeholders and developing best practices for integrating sustainability issues in the way we do business."

The International Auditing and Assurance Standards Board (IAASB) today released a proposed new assurance standard that addresses the process of compiling pro forma financial information included in prospectuses. Recognizing the increasingly integrated nature of global capital markets and the importance of pro forma financial information in the public's investment decisions, the newly proposed standard is designed to enhance public confidence in how such financial information is produced.

The International Public Sector Accounting Standards Board (IPSASB) today released for comment exposure draft (ED) 44, Improvements to International Public Sector Accounting Standards (IPSASs).

The International Auditing and Assurance Standards Board (IAASB) today released its 2009 annual report. The report highlights the completion of the landmark Clarity Project surrounding the IAASB's International Standards on Auditing (ISAs), the development of adoption and implementation resources for the ISAs, and the launch of innovative new projects to address emerging issues.

The Small and Medium Practices (SMP) Committee of the International Federation of Accountants (IFAC) published an analysis of research on business advisory services provided by SMPs. The extensive analysis includes a review of global research spanning academic studies, practitioner surveys, and interviews of SMP partners.