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Apr 07, 2009
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IFAC Supports G20 Objectives for Reform of Global Financial System
The International Federation of Accountants (IFAC) endorses the proposals to enhance global financial regulation and improve the transparency of the international financial system that were issued in the G20 Communiqué on the world economic crisis on April 2 in London.
The G20 objectives are consistent with many of the recommendations that IFAC sent to the G20 Working Groups prior to the London summit, such as the call for implementing the Financial Stability Board's 12 key International Standards and Codes (which include International Standards on Auditing); making significant progress toward a single set of high-quality global accounting standards; making improvements in the international regulatory framework; and strengthening the roles of the International Monetary Fund and the World Bank. (See IFAC's submission at www.ifac.org/financial-crisis).
"We support the G20 in building a reformed international financial system," states Ian Ball, Chief Executive Officer of IFAC. "The accountancy profession will have a vital role to play moving forward, and IFAC will continue to emphasize the measures we suggested in our recommendations to the G20 last week."
Among IFAC's recommendations were the adoption of International Public Sector Accounting Standards (IPSASs) in all jurisdictions and the provision by the G20 of sufficient resources to develop and disseminate implementation guidance for the global standards they support. IFAC also proposed:
- Strengthening of the International Monetary Fund's Code of Good Practices on Fiscal Transparency through the application of IPSASs;
- Support for the establishment of well-governed professional accountancy bodies in countries where they do not currently exist;
- Continued support for the World Bank's Reports on Observance of Standards and Codes (ROSC) initiative;
- The establishment of an international, principles-based threshold of competencies for senior financial officers in public interest entities; and
- That the G20 ensure its actions are supportive of the small business sector.
IFAC is developing a further set of recommendations that builds on the proposals in the G20 Communiqué.
IFAC (www.ifac.org) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 157 members and associates in 122 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its independent standard-setting boards, IFAC sets international ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.