Accountancy organizations, regulatory bodies, standard setters, and other international organizations have developed guidance, articles, and resources on issues related to the global financial crisis. This section of the IFAC website serves as an international clearinghouse of programs, articles, speeches, and other initiatives undertaken by IFAC, its independent standard-setting boards, members and associates, and others that are relevant to professional accountants and to other stakeholders in the accountancy profession. IFAC ActivitiesTo assist professional accountants in addressing issues related to the global financial crisis, IFAC and the International Auditing and Assurance Standards Board (IAASB) have focused on three activities:
IFAC InitiativesFinancial Reporting Supply Chain: Business Reporting Recommendations from Key Leaders Key leaders provide recommendations in a series of five articles on what should be done to improve corporate governance, business reporting, and auditing in the aftermath of the financial crisis.
Readers are encouraged to comment on the recommendations of individual business leaders via a brief survey. The articles, along with transcripts of the full interviews and links to the surveys, are available at www.ifac.org/frsc. IFAC has submitted recommendations for the reform of the global financial system to the G20 Working Groups that met during the 2009 London Summit. IFAC's views are expressed in the letters below:
IFAC has submitted recommendations for the reform of the global financial system to the G20 Working Groups that will meet in Pittsburgh, PA on September 24-25, 2009. IFAC's views are expressed in the letter below: Third Annual Global Leadership Survey According to the survey results, SMEs may have more access to credit down the road, but will have to pass more rigorous tests to demonstrate their creditworthiness. The survey results also confirmed the critical role that accountants play in providing information that influences lender decision making. The survey results, and the following articles contributed by IFAC and The Banker, are featured in a special supplement within the October issue of The Banker: Relevant GuidanceAudit Practice Alert on Going Concern Assumptions Audit Considerations in Respect of Going Concern in the Current Economic Environment (January 2009), deals with the effect of the credit crisis and economic downturn on an entity's ability to continue as a going concern and whether these effects ought to be described in the financial statements. It also raises awareness of issues surrounding liquidity and credit risk that may create new uncertainties for entities or exacerbate those already existing. Audit Practice Alert on Auditing Fair Values Challenges in Auditing Fair Value Accounting Estimates in the Current Market Environment (October 2008), was developed following consultation with the IAASB's Task Force on Fair Value Auditing Guidance, which is considering the need for new or modified guidance in light of current marketplace issues. The purpose of the alert is to highlight areas within the International Standards on Auditing (ISAs) that are particularly relevant in the audit of fair value accounting estimates in times of market uncertainty. The alert directs auditors to the recently revised ISA 540 (Revised and Redrafted), Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures, which was influenced by the changes in the credit markets during 2007. While not effective until audits of financial periods commencing on or after December 15, 2009, it includes guidance that is likely to be useful to auditors planning their 2008 engagements. Further Auditing Guidance Convergence in Fair Value StandardsIFAC has monitored the initiatives of the International Accounting Standards Board (IASB). In response to their initiatives to remove differences in the application of fair value accounting in different jurisdictions, IFAC issued a press release expressing support for convergence in reporting on financial instruments. The release also indicated IFAC's opposition to attempts within Europe and the United States to change more radically the use of fair value accounting without adequate due process. Discussions of Best PracticesCredit Crisis Session at IFAC Council Meeting
Remarks of IFAC President During the IFAC 2008 Council meeting, IFAC President Robert Bunting commented on how IFAC is dedicated to working with other organizations to be part of the solution in addressing issues related to the credit crisis. Forum of Firms Symposium If you have thoughts on best practices for accountants or others in the financial reporting supply chain, please share them on our Discussion Board. |