- articulating the fundamental concepts underlying the five components by highlighting 17 guiding principles and more detailed points of focus;
- accounting for environmental changes, such as increased globalization, complexity, and regulation, the growing importance of technology, and increased expectations for better governance oversight and fraud prevention;
- expanding the operations objective from “effective and efficient use of the entity’s resources” to “effectiveness and efficiency of the entity’s operations, including operational and financial performance goals, and safeguarding assets against loss”;
- broadening the reporting objective from “published financial statements” to “internal and external financial and non-financial reporting”; and
- providing additional approaches and examples relevant to operations, compliance, and non-financial reporting objectives.
PAIB eNews: May 2013
Newsletters & eNews
May 14, 2013
New York, New York
PAIB eNews: May 2013
Welcome to IFAC's Professional Accountants in Business Committee (PAIB) eNews.
In This Issue
GOVERNANCE, RISK, AND CONTROL
1. Internal Control Guidance Published as Executive Summary; Available for Local Customization
2. IFAC Staff Discuss Risk Management at ICAP CFO Conference
3. Updated Internal Control Framework Released by COSO
4. Conference on ISO Risk Management Standard to be Held in Toronto
INTEGRATED AND SUSTAINABILITY REPORTING
5. IIRC Releases Integrated Reporting Framework
6. Proposed Sustainability Accounting Standards Released by SASB
7. GRI Global Conference Approaching
8. New Report Argues Business Case for Natural Capital
9. World Congross of Accountants 2014 to be Held in Rome; Sponsorship Opportunities Available
GOVERNANCE, RISK AND CONTROL
The Professional Accountants in Business Committee recently published Evaluating and Improving Internal Control in Organizations: Executive Summary, part of the International Good Practice Guidance series. The condensed version of the guidance summarizes the principles and the importance of effective systems of internal control, as well as explains some of the pitfalls that can be avoided. The executive summary is available to IFAC members and associates for local customization and/or translation. If your organization is interested, please visit the Translations and Permissions page of the IFAC website for the permission request form, which will need to be completed and submitted to firstname.lastname@example.org. If you have any questions, please contact Vincent Tophoff (email@example.com).
IFAC staff recently participated in the Institute of Chartered Accountants of Pakistan (ICAP)’s CFO Conference, lecturing on current trends and thinking in risk management and best practices. The presentation, Strategic Risk Management in the Face of Uncertainty and Unexpected Risks, is available on the IFAC website.
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) recently released the revised version of Internal Control-Integrated Framework to improve implementation of internal control.
Changes within the Framework include:
The PAIB Committee has been closely involved in the revision, with two representatives on the COSO advisory council for the project. The PAIB Committee also submitted formal comment letters to both COSO internal control exposure drafts.
The 2nd International Conference on ISO 31000 [Risk Management] Standard will be held May 28-31, 2013, in Toronto, Canada. ISO 3100—Risk Management provides principles, framework, and a process for managing risk. It can help organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats, and effectively allocate and use resources for risk treatment. IFAC staff will be presenting on how to leverage ISO 31000 for effective integration of risk management and internal control.
INTEGRATED AND SUSTAINABILITY REPORTING
The landmark International Integrated Reporting Framework has been released 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. The IIRC is asking all stakeholders to provide feedback on the Framework during its public consultation period, which closes July 15, 2013. The Framework has been released in English but will also be available soon in additional languages. IFAC, a partner in this global effort, encourages all professional accountants to provide feedback.
In support of the Framework, IFAC, the Chartered Institute of Management Accountants, and PwC released Business Model: A Background Paper for Integrated Reporting, which addresses the wide variation in how organizations define their business models and approaches. The paper provides background and context on how business model reporting should be undertaken in an integrated report and suggests content for business model reporting requirements, which are included in the proposed Framework. The proposed definition and guidance in the paper aim to bridge the varied interpretations by highlighting commonalities and ensuring a broad and inclusive application across industries and sectors. Additional background papers are available on the IIRC website.
The Sustainability Accounting Standards Board (SASB) has released a set of proposed sustainability accounting standards for the financial sector. Industries included in this sector are: asset management and custody activities, investment banking and brokerage, commercial banking, consumer finance, mortgage finance, security and commodity exchanges, and insurance. The public comment period closes on June 14, 2013.
The Global Reporting Initiative (GRI) is holding the Global Conference on Sustainability and Reporting in Amsterdam, the Netherlands, May 22-24, 2013. The conference will provide the opportunity to connect, share successful strategies, and collaborate on efforts to build a sustainable global economy. Additionally, the latest evolution of GRI’s Sustainability Reporting Guidelines (G4) will be released at the conference. GRI expects more than 1,500 leaders and practitioners from over 70 countries, including representatives from business, financial institutions, civil society, international organizations, governments, labor, and academia.
Organisational Change for Natural Capital Management, released by The Economics of Ecosystems and Biodiversity (TEEB) for Business Coalition, describes how business leaders can strategize and implement changes in organizational behavior related to valuing natural capital in their companies. The TEEB for Business Coalition, which includes IFAC, supports the development of natural and social capital valuation in business, including providing a compelling economic case for the conservation of natural capital as the cornerstone of green economic policies.
The next World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy, in 2014. Themed 2020 Vision: Learning from the Past, Building the Future, the 2014 WCOA will be held November 10-13 at the Auditorium Parco della Musica. More than 4,000 professionals from all over the world will convene at this can’t-miss IFAC event, held every four years. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will set the tone for the future
The WCOA also affords an unparalleled opportunity for organizations and firms to share their projects and visions with the world by taking advantage of one of our carefully crafted sponsorship packages. There are numerous options so you’ll be able to select the one that best suits your organization’s unique strategy and goals. For more information, please contact firstname.lastname@example.org or Dimarco@wcoa2014rome.com.