IFAC today released the latest installment of its Exploring the IESBA Code educational series: The Conceptual Framework–Step 2, Evaluating Threats.

Exploring the IESBA Code is a twelve-month series providing an in-depth look at the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code). Each installment focuses on a specific aspect of the Code using real-world situations in a manner that is relatable and practical. Readers will gain a better understanding of the thought process behind important aspects of the Code through storytelling and expert analysis from professionals involved in developing the standards.

The first installment of the Series looked at the Code’s five Fundamental Principles, which establish the standard of behavior expected of all professional accountants. The second installment highlighted the Code’s Conceptual Framework with a focus on identifying threats, while this third installment focuses on how to evaluate those identified threats.

A professional accountant can often come across complex or challenging situations that are not black and white. These challenging situations require ethical considerations, some of which are expressly dealt with in the Code. The unique and informational series was developed by IFAC in collaboration with the International Ethics Standards Board for Accountants (IESBA) to help explain how the Code assists in navigating some of these challenges.

To read and download this and future installments, visit the IFAC website.

The Exploring the IESBA Code was published by IFAC and does not form part of the Code. It is non-authoritative and is not a substitute for reading the Code.

For more information about the Code, please click here.

The International Ethics Standards Board for Accountants (IESBA) today released its Phase One Report exploring the ethical implications of technology on the accounting, assurance, and finance functions.

The report is the culmination of the first phase of fact-finding work the global ethics standard-setting board initiated in recognition of the pace and magnitude of change caused by disruptive technological innovations. The initial phase of the initiative was led by the IESBA’s Technology Working Group (TWG).

In its findings, the TWG concluded that, generally, the IESBA’s International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) currently provides high level, principles-based guidance for most technology-related ethics issues that professional accountants and firms might encounter. However, the report cites various findings and sets out recommendations grouped into five key topical areas where material in the Code could be enhanced.

“Over the last few years, the pace, significance and complexity of technology advances, such as machine learning, have given rise to new opportunities and challenges for the accountancy profession,” said Dr. Stavros Thomadakis, IESBA Chair, adding “The effective organization and delivery of services are already undergoing major change. The global accountancy profession will have to recognize and address new ethical challenges in a rapidly changing technological environment. The IESBA Technology Working Group has delivered a comprehensive and informative report in this strategic area. This lays the groundwork for our substantive and timely response to ethical and public interest challenges posed by radical technological change.”

The report also includes other recommendations for the next phase of the initiative, including that the IESBA conducts additional information gathering with respect to the ethical implications of other technological developments such as blockchain, cybersecurity and Internet of Things.

Click here for more information.

Felicity Rylands is Programme Manager of Capacity Building Projects at the Association of Chartered Certified Accountants.

Based in the UK, Felicity manages a portfolio of donor-funded development projects to build capacity in finance and accounting organisations, strengthening the profession around the world.

This portfolio includes projects across Asia, Africa, Europe and the Caribbean to implement international standards, develop strategy, and strengthen qualifications and regulation – as well as supporting partner bodies in their journey to IFAC membership.

Felicity’s background is in international development and capacity building. Prior to joining ACCA in 2018 she worked as part of a small management team to set up and establish Prince’s Trust International; Prince Charles’ newest charity, focused on capacity building partner organisations  across the Commonwealth and Middle East to support young people on their journey from education to employment.

Felicity has a Bachelor of Arts in Development Studies and Swahili from the School of Oriental and African Studies (SOAS) and has lived, studied and worked across East Africa for many years.

A new report by ACCA and IFAC highlights the benefits of accrual information in the public sector and identifies the positive impact on citizen lives.  

In interviewing 20+ public sector experts – including IPSASB Board member Neema Kiure-Mssusa, IPSASB Program and Technical Director Ross Smith, and IPSASB Principal Joao Fonseca – the report also provides 30 recommendations for governments to improve accrual implementation.

In asking “Is Cash Still King?” IFAC and ACCA examine how important accrual information is for a strong public sector, economy, and citizen well-being. Aligned with these outcomes, the IPSASB remains committed to the strategic objective of strengthening public financial management by increasing adoption of accrual-based IPSAS. [Hear our Chair, Ian Carruthers, discuss how the IPSASB works to strengthen public financial management.]

We encourage you to read the report and to share with your stakeholders.

There are more public sector insights available on our YouTube playlist. In particular, check out:

• IPSASB Deputy Chair Mike Blake discussing the benefits of accruals for strategic asset management in the public sector
• IPSASB Member Bernhard Schatz exploring why governments should add public sector pension liabilities to the balance sheet
• Fergus McCormick of the Emerging Markets Investors Alliance exploring how investors interpret information on public finances
• Jacob Soll, USC Professor, discussing why balance sheet information must inform executive decision making in the public sector

Louise is a Technical Manager at ICAEW. She develops technical and practical online content to meet the needs of subscribers to ICAEW’s International Standards service and ICAEW Audit and Assurance Faculty members.

ICAEW’s International Standards service offers organisations access to world-class technical resources to support the implementation of global standards on financial reporting, auditing and ethics.

Developed for an international audience, the service is designed to support global professional member bodies, international businesses, global accounting firms and networks.

Through an annual corporate subscription, International Standards provides employees or members with online access to a range of tools, information and practical guidance, including live webinars, on-demand video recordings, technical factsheets, guides, thought leadership articles and case studies.