Sovereign Debt Crises—Accounting Matters

Jul 20, 2015 | New York, New York | English

The International Federation of Accountants® (IFAC®), the global organization for the accountancy profession with members and associates in 130 countries, recently joined a multi-disciplinary group at the CESifo Institute in Munich, Germany, to share past lessons of over-borrowing and default, and analyze present weaknesses in sovereign debt management. The discussion was timely in light of Greece’s debt crisis.

The participants―accountants, economists, finance specialists, lawyers, statisticians, and representatives of academia, business, governments, international organizations, and think tanks—held varied views on how to resolve Greece’s debt crisis.

IFAC supports the argument that Greece must build trust and confidence with all stakeholders by making transparency and accountability its most urgent and important reform. Whether the issue is political, economic, or social—accounting matters, and starting with the right numbers is essential to assessing the economic and financial consequences of alternative solutions. Thus, a fresh start for Greece should begin with government financial information based on accrual-based International Public Sector Accounting Standards.

To support greater awareness of the need for higher quality government financial reporting, IFAC has convened the broad-based Accountability. Now. coalition. Coalition member organizations believe there is a better way forward for governments of all sizes and it starts with equipping governments with the foundation for good financial management: transparent, accountable financial information.

About Accountability. Now.
Accountability. Now. represents a coalition of organizations that believe there’s a better way forward for governments of all sizes. It starts with equipping governments with the foundation for good financial management: transparent, accountable financial information that: captures the entire picture of funding commitments, now and in the future; facilitates wise spending; strengthens economies; and builds trust with their citizens. Better quality financial information and increased transparency won’t solve all the challenges of governing, but they will greatly assist government decision making and performance.

About IFAC
IFAC 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. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.


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