Supporting International Standards
We contribute to and promote the development, adoption, and implementation of high-quality international standards.
Transparent, high-quality international standards used by professional accountants are an essential pillar of the global financial architecture.
- Greater international consistency and ease of doing business
- Enhanced cross-border capital, financial flows, investments
- Greater financial stability; and
- Lower risks of regulatory arbitrage in corporate reporting.
Adoption and implementation of international standards
Adoption and implementation of international standards supports the provision of high-quality financial information to stakeholders, investors and the public, which results in greater economic growth, development and accountability.
While incredibly important to strong economies and financial markets, no international laws require nations to adopt and implement international standards. They are adopted because their quality, legitimacy, and impact are assured through active, purposeful consultation and a strong public-private partnership that stresses the public interest.
Stats on adopting international standards
In fact, with the support of IFAC and its member organizations, many jurisdictions have made progress adopting international standards and best practices. Across a representative group of 80 jurisdictions surveyed, in which 104 member organizations operate:
- 100 percent of member organizations have incorporated some requirements of the 2010 International Education Standards, and 20 percent have adopted them fully.
- 98 percent have established investigative and disciplinary systems.
- 91 percent have adopted International Financial Reporting Standards for all or most public interest entities.
- 84 percent have established quality & assurance review systems.
- 79 percent have adopted International Standards on Auditing for all mandatory audits.
- 61 percent have fully adopted the Code of Ethics for Professional Accountants, and 36 percent have partially adopted it.
- 55 percent have made progress in the adoption of International Public Sector Accounting Standards.
Developing highly-quality standards requires a robust standard-setting process, global consultation, and extensive oversight mechanisms.
The multi-stakeholder, shared public-private governance model under which the standards are developed ensures that the public interest remains the focus of standard setting, takes place without political or commercial interference, and includes checks and balances to ensure that no one stakeholder has undue influence.
We are continuing to ensure the profession is appropriately engaged in a shared public/private standard-setting model that yields widely adopted and implemented high-quality standards developed in the public interest.