IFAC Welcomes European Commission Efforts to Enhance Corporate Reporting
A multi-pillar approach is the best path to high-quality, decision-useful information
Feb 22, 2022 | New York, New York | English
The International Federation of Accountants (IFAC), which comprises 180 member and associate organizations and represents over 3 million professional accountants globally, welcomes the opportunity to provide input into the European Commission’s work to enhance corporate reporting—including a focus on corporate governance, statutory audit, and supervisory aspects of the ecosystem that delivers relevant, reliable, and comparable information to stakeholders.
As the voice of the global accountancy profession, IFAC understands the crucial role that auditors, as well as professional accountants more broadly, play in high-quality corporate reporting. But no matter how skilled or well-resourced, auditors alone cannot overcome significant shortcomings in other key areas of the reporting ecosystem—especially the role of directors, audit committees, and those charged with governance.
IFAC believes that global standards promote global methodologies, which lead to enhanced and more consistent quality in both reporting and assurance. We support high-quality, globally-applicable standards for financial reporting developed by the IASB, sustainability disclosure developed by the ISSB, audit and assurance developed by the IAASB, as well as the IESBA International Code of Ethics. We also believe audit firms are best placed to provide not only audits of financial statements but also assurance on sustainability disclosures.
IFAC CEO Kevin Dancey said, “Corporate governance, audit, and supervision have historically focused on financial statement reporting for investors and other providers of capital. But now that sustainability-related disclosure is becoming mainstream, this information must also be high-quality and trustworthy. The accountancy profession, with its responsibility to act in the public interest, has an essential role to play in this evolution of corporate reporting.”
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. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.