The IPSASB has approved the Consultation Paper Reporting Service Performance Information. The IPSASB considers that reporting service performance information is necessary to meet the objectives of financial reporting, which are to provide information that is useful to users of General Purpose Financial Reports (GPFR) for accountability and decision making. This project aims to present a principles-based approach to developing a consistent framework for public sector entities.

IPSASB Chair Andreas Bergmann stressed, “Service performance information is essential for accountability for the efficient and effective use of resources, service provision, and achievement public sector entities’ objectives. Service performance reporting can provide financial and non-financial, as well as quantitative and qualitative, information about the achievement of service delivery objectives in the current reporting period, as well as anticipated future service delivery activities and resource needs.”

Various public sector entities around the world currently report service performance information. In practice, such reporting is diverse. The objective of the IPSASB’s service performance information project has been to improve the consistency and comparability of such information across jurisdictions and between entities.

Overall, the Consultation Paper proposes a framework for reporting service performance information. The framework includes information on the scope of the service performance information reported, the public sector entity’s objectives, the achievement of those objectives, and a narrative discussion of the achievement of all the objectives. The Consultation Paper also proposes a standardized service performance information terminology and working definitions to enhance users’ understanding of service performance information reported as outlined in the proposed framework.

The Consultation Paper is available to download free of charge from the IPSASB website (www.ipsasb.org). The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of this consultation paper to their members and employees.  

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC.

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 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The International Public Sector Accounting Standards Board (IPSASB) has published Exposure Draft (ED) 46, Recommended Practice Guideline. This ED builds on a consultation paper issued in late 2009. ED 46 provides good practice guidelines on reporting on the long-term fiscal sustainability of a public sector entity, and particularly emphasizes that entities may be able to draw on projections that are already being made by other bodies, thereby ensuring a cost-effective approach.

The sovereign debt crisis has emphasized the significance of the fiscal condition of governments and other public sector entities to the global economy. There have been heightened concerns about the ability of governments to meet debt servicing obligations and the extent to which they can maintain current policies and meet current and future obligations related to entitlement programs, without raising taxes and contributions or increasing debt to unsustainable levels.

These concerns have emphasized the importance of providing projections of inflows and outflows of resources over the longer term, together with narrative explanations of the main risks facing governments and other public sector entities. This information allows the users of general purpose financial reports to assess the extent to which current policies are sustainable, and complements the financial statements, which remain at the core of public sector financial reporting.

“The continuing volatility in the world’s financial markets has reinforced the IPSASB’s conviction that  financial statements alone cannot provide all the information necessary to enable citizens, investors, and other users to evaluate the long-term fiscal sustainability of governments and public sector entities,” explained Andreas Bergmann, chair of the IPSASB. “ED 46 aims to provide straightforward guidance to entities to ensure that information on their fiscal sustainability is complete, relevant, and understandable. I encourage our constituents to give this ED full consideration, provide feedback, and assess the need to report on the long-term sustainability of their finances.”

This IPSASB project has continued to benefit greatly from the oversight of a Task Force with a wide membership, including standard setters with experience reporting on long-term fiscal sustainability, governments that have many years’ experience reporting on long-term fiscal sustainability, and supranational organizations, such as the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), and Eurostat, the statistical office of the European Union.

ED 46 is available to download free of charge from the IFAC website (www.ipsasb.org). The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of this Exposure Draft to their members and employees.  

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC.

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 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The 2011-2012 IESBA Strategy and Work Plan, which sets the direction and priorities for the activities of the International Ethics Standards Board for Accountants (IESBA), has been approved by the IESBA, the IESBA Consultative Advisory Group, and the Public Interest Oversight Board.  The IESBA plans to build upon the strong base established by the revised Code of Ethics for Professional Accountants (the IESBA Code) issued in July 2009. The 2011-2012 Strategy and Work Plan is focused on three strategic areas: development of standards; adoption and implementation; and convergence.

The IESBA plans to develop additional guidance for professional accountants on identifying and addressing a conflict of interest, responding to suspected illegal acts, and dealing with a breach of an independence requirement of the IESBA Code. The IESBA will also consider recommendations of an IESBA Working Group tasked with reporting on the unique and challenging issues faced by professional accountants in small- and medium-sized entities and small- and medium-sized practices in complying with the IESBA Code.

“The 2011-2012 Strategy and Work Plan reflects the IESBA’s commitment to serve the public interest by setting high-quality ethical standards for professional accountants,” said Ken Dakdduk, IESBA Chair. “This commitment is also demonstrated by facilitating the convergence of international and national ethical standards, including auditor independence requirements, through the development of a robust, internationally appropriate code of ethics.”

To determine the best course of action for furthering its objective of achieving convergence of the IESBA Code and national standards and regulations, the IESBA will also consider input from regulators and national standard setters and compare key provisions in the IESBA Code to the standards and regulations of select jurisdictions.

Please visit www.ifac.org/Ethics to access the plan or to learn more about the IESBA.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA are facilitated by IFAC.

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 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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International network of accounting firms Baker Tilly International Limited and Nexia International have been admitted as full members of the Forum of Firms (Forum), after confirmation that they have met the Forum's membership standards. This includes reporting that they have implemented a globally coordinated quality assurance program, have policies and methodologies based on the International Standards on Auditing (ISAs), and have met other specific requirements of the Code of Ethics for Professional Accountants.

Twenty-two other international networks of accounting firms are also full members of the Forum of Firms and continue to report their adherence to the Forum's membership obligations. A list of the Forum's members is available at www.ForumofFirms.org.

The Forum of Firms is an association that brings together international networks of accounting firms that perform audits of financial statements that are or may be used across national borders. The Forum's goal is to promote consistent and high-quality standards of financial reporting and auditing practices worldwide.

“We are delighted at having Baker Tilly and Nexia join the Forum and their public commitment to International Standards on Auditing and rigorous quality control standards,” says Robert Dohrer, chair of the Forum of Firms. “With the addition of Baker Tilly and Nexia, three major networks have committed in 2011 to the Forum’s international standards quality benchmark—all 24 Forum members have an important role to play in contributing to public confidence in the accountancy profession and in financial reporting in general.”

In order to achieve full membership status, Baker Tilly International Limited and Nexia International had to commit to meeting the Forum's membership obligations, which require members to:

• maintain appropriate quality control standards in accordance with International Standards on Quality Control issued by the International Auditing and Assurance Standards Board (IAASB), in addition to relevant national quality control standards and conduct, to the extent not prohibited by national regulation, regular globally coordinated internal quality assurance reviews;
• have policies and methodologies for the conduct of transnational audits that are based, to the extent practicable, on ISAs issued by the IAASB; and
• have policies and methodologies that conform to the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics for Professional Accountants and national codes of ethics.

For additional details on the Forum of Firms, please visit: www.ForumofFirms.org.

About the Forum of Firms
The Forum of Firms is an association of networks of international accounting firms that perform transnational audits. Members of the Forum have committed to adhere to and promote the consistent application of high-quality audit practices worldwide, including the use of International Standards on Auditing, and the maintenance of appropriate quality control standards in accordance with International Standards on Quality Control issued by the International Auditing and Assurance Standards Board. Through their organizations, members also conduct globally coordinated internal quality assurance reviews on a regular basis and have policies and methodologies that conform to the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants. The Transnational Auditors Committee is the Executive Committee of the Forum of Firms and a committee of the International Federation of Accountants (IFAC).

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. IFAC is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The International Federation of Accountants (IFAC) is pleased to provide a series of recommendations for consideration by the G-20 at its meeting on November 3-4, 2011 in Cannes, France.

Over 50 senior audit professionals from 24 international networks of accounting firms met yesterday to share their perspectives on the topic of audit quality. The symposium, organized by the Forum of Firms, assembled a group of experts to discuss several elements of audit quality, in support of work currently being undertaken specifically by the International Auditing and Assurance Standards Board (IAASB).

"This symposium was designed to encourage participants to exchange views on audit quality from the perspectives of different stakeholders, including users, practitioners, and audit committees,” said David Maxwell, chair, Transnational Auditors Committee. “The discussion raised questions on how audit quality should be defined, as well as ideas for practitioners to consider implementing in their audits.”

The symposium commenced with an overview of the IAASB’s project to develop an international framework for audit quality. Set against this backdrop, the first of two panels debated the expectations of auditors by investors, regulators, and management and the role that those charged with governance have in contributing to audit quality. Having an understanding of the multiple perspectives on audit quality, participants then considered what practitioners can do to drive audit quality by focusing on the “audit inputs”—namely audit firm culture, qualities of audit personnel, and audit process.

"Audit quality is a topic that runs right to the core of the Forum of Firms mandate and mission—the more we all understand it, the more we all can do to strengthen it,” said Robert Dohrer, chair, Forum of Firms. “It is essential that all audit firms be engaged in the debate on this topic so that we can better consider how, as practitioners, we can better contribute to its advancement.”

About the Forum of Firms
The Forum of Firms is an association of networks of international accounting firms that perform transnational audits. Members of the Forum have committed to adhere to and promote the consistent application of high-quality audit practices worldwide, including the use of International Standards on Auditing, and the maintenance of appropriate quality control standards in accordance with International Standards on Quality Control issued by the International Auditing and Assurance Standards Board. Through their organizations, members also conduct globally coordinated internal quality assurance reviews on a regular basis and have policies and methodologies that conform to the Code of Ethics for Professional Accountants. The Transnational Auditors Committee is the Executive Committee of the Forum of Firms and a committee of the International Federation of Accountants.

The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting body that develops and issues the Code of Ethics for Professional Accountants. The Code includes standards on auditor independence but is intended to apply to the actions and decisions of all professional accountants, including those in business. The structures and processes that support the operations of the IESBA are facilitated by the International Federation of Accountants (IFAC).

On behalf of the IESBA, IFAC is seeking an exceptional individual to serve as a Chair on a remunerated basis, for a minimum of 100 days per year, beginning January 2013. By mutual agreement this commitment could be increased up to and including a full time role. The IESBA Chair is appointed for a three-year term by the IFAC Board with approval by the Public Interest Oversight Board.*

The objective of the IESBA is to serve the public interest by setting, independently and under its own authority, high-quality ethical standards for professional accountants and by facilitating the convergence of international and national ethical standards, thereby enhancing the quality and consistency of services provided by professional accountants throughout the world and strengthening public confidence in the global accountancy profession. The Chair provides leadership to the IESBA in achieving these objectives. A key function of the Chair is to enable, encourage, and promote a deeper understanding by stakeholders and the public of the strategies and activities of the IESBA.

The Chair will also lead the strategic direction of the IESBA, working closely with IESBA senior staff, and facilitate the deliberative and consultative processes that underpin the authority of the IESBA and the legitimacy of its standards and activities. In addition, the Chair will be involved in developing and maintaining effective relationships with national standard setters, regulators, and other key stakeholders.

The successful candidate should have effective leadership, communication, and strategic skills; demonstrated technical and professional competency; and a commitment to the IESBA and its mission to protect the public interest. He or she will have very significant and senior experience. Exposure to professional ethical issues at a national, regional, or international level would be an asset, as would familiarity with regulatory and standard-setting processes. Only individuals who possess the highest integrity will be considered. The position is not restricted to professional accountants. However, any professional accountant applying for the position must have had no direct relationship with an audit firm for at least three years.

For further information about the position, please see the Call for Applications, Chair of the IESBA on the IFAC website at www.ifac.org/careers. Applications are due by February 10, 2012.

*Notes to Editors

The international Public Interest Oversight Board (PIOB) was established in February 2005 to ensure that international auditing and assurance, ethics, and education standards for the accountancy profession are set in a transparent manner that reflects the public interest. The objective of the PIOB is to increase confidence of investors and others that such activities, including the setting of standards by the IESBA, are properly responsive to the public interest. PIOB members are nominated by international institutions and regulatory bodies.

About IFAC

IFAC is the worldwide 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’s current membership consists of over 164 professional accountancy bodies in 125 countries, representing approximately 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to supporting the setting of ethical standards through the IESBA, IFAC supports the setting of auditing and assurance, education, and public sector accounting standards and develops guidance to encourage high-quality performance by professional accountants in business.

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