• Developing and Reporting Supplementary Financial Measures

    International Good Practice Guidance

    This guidance seeks to establish a benchmark for the use of supplementary financial measures, in order to improve understanding of an organization’s performance among management, investors, and other stakeholders. It provides principles regarding the qualities a measure should have and disclosures that should accompany them if reported externally. Building on the qualitative characteristics of useful financial information, the guidance recommends professional accountants consider a number of attributes when developing and reporting supplementary financial measures.

    Published:
    |

  • Translations & Permissions eNews: February 2014

    New York, New York English
    Now Available: Print Version of Spanish IPSASB Handbook

    IFAC, in cooperation with the World Bank and the Department of Accounting and Finance at the University of Zaragoza, Spain, recently finalized the Spanish translation of the 2013 Handbook of International Public Sector Accounting Pronouncements, issued by the International Public Sector Accounting Standards Board (IPSASB). The translation was reviewed by an international committee consisting of public sector experts from Argentina, Chile, Mexico, Spain, and Uruguay. IFAC is grateful for the valuable contributions and kind assistance of all those involved. The publication is an important resource for those in the public sector; IFAC member bodies are encouraged to visit the IFAC website and contact the relevant public sector entities in their countries to make them aware of the availability of this important publication of translated pronouncements. The print version of the translated handbook is available for sale from the IFAC website.

    Update on Ibero-American Cooperation Agreement

    In October 2012, IFAC and its member bodies in Argentina, Mexico, and Spain agreed to establish an Ibero-American Cooperation Framework (the “IberAm project”) to collaborate on a sustainable process for producing a single Spanish translation for international standards and IFAC publications. Due to the large number of countries where Spanish is an official language, the availability of high-quality Spanish translations of international standards is essential to facilitate effective global adoption and implementation. The IberAm project includes a broad representation of Spanish-speaking countries and seeks to collaborate and coordinate the translating resources of relevant member bodies more efficiently for the benefit of the global accountancy profession.

    The IberAm Review Committee is actively working on the review of more than 1,500 pages of material translated in 2013. The review is expected to be finalized in March 2014. Additionally, the Executive Committee of the IberAm project is scheduled to meet in early March to discuss ongoing translation and review efforts, as well as priorities for 2014.

    Availability of Single Spanish Translation Facilitates Adoption of IAASB and IESBA Pronouncements in Colombia

    The Instituto Nacional de Contadores Públicos (INCP), the Colombian Ministry of Commerce, Industry and Tourism, and IFAC recently signed agreements enabling official adoption of the pronouncements of the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) in Colombia. The availability of a single, high-quality Spanish translation of these pronouncements is an essential element in facilitating such adoption. These translations were produced as a result of the Ibero-American Cooperation Framework (the “IberAm project,” see item 2 above). This development highlights the increasing adoption of pronouncements from these boards in non-English speaking countries, with the Latin American region being of particular economic importance. IFAC would like to extend its gratitude to INCP for the valuable and ongoing assistance it is providing to facilitate adoption of the international standards in Colombia.

    Update on Russian Translation of the IAASB Handbook

    Following a recent agreement, the National Organization for Financial Accounting and Reporting Standards (NOFA) Foundation has become a designated translating body for the Russian version of the International Auditing and Assurance Standards Board (IAASB)’s pronouncements. This agreement is an important step in enabling adoption of the pronouncements of the IAASB in the Russian Federation. The NOFA Foundation is currently translating the 2013 IAASB Handbook, which is expected to be completed in 2015.

    The NOFA Foundation, a non-commercial organization, promotes the rules and standards for financial accounting and reporting in the Russian Federation and encourages implementation by Russian enterprises. The NOFA Foundation is also the official translating body for the Russian version of the International Financial Reporting Standards.

    The most recent translation of the IAASB Handbook (the 2012 edition) was performed by the Russian Collegium of Auditors (RCA), and is available for purchase on the RCA website. For more information on RCA and its translation efforts, please see the article, “RCA: Leveraging Translation Expertise,” in the August edition of IFAC News. IFAC thanks both RCA and the NOFA Foundation for their instrumental efforts in producing Russian translations of the international standards.

    IFAC News Recaps Arabic Translation Efforts

    The translation activities of the International Arab Society of Certified Accountants (IASCA) and the Saudi Organization for Certified Public Accountants (SOCPA), two of the designated bodies for Arabic translation of materials from IFAC and the independent standard-setting boards, were detailed in the latest issue of IFAC News. Both organizations seek to advance accountancy, auditing, and related fields through the distribution of professional knowledge in Arabic. These translations serve professional accountants in 22 Arabic-speaking nations. IFAC would like to extend its gratitude to IASCA and SOCPA for their efforts in producing high-quality translations for the Arabic speaking world. Links to resources translated into Arabic can be found in the Translations Database.

    French Translation of PAO Development Committee Toolkit Now Available

    Materials designed to help professional accountancy organizations (PAOs) strengthen and grow have recently been translated into French. Establishing and Developing a Professional Accountancy Body, originally published by the IFAC PAO Development Committee, covers the roles and responsibilities of a professional accountancy organization, education and examinations, and capacity development. A French translation of the PAO Development Committee’s Tools and Resources to Support the Development of the Accounting Profession, which includes case studies, practical illustrations, and supplementary guidance to support organizations in expanding and strengthening their role and responsibilities, is in progress and is expected to be available soon. The two documents make up the PAO Development Committee’s toolkit for PAOs. IFAC would like to thank the Ordre des Experts Comptables de Tunisie for their efforts in the translation of these resources. 

    Newly Available Translated Publications

    To view translated publications, please see the Translations Database.

    • Arabic—Handbook of International Public Sector Accounting Pronouncements (2013)
    • Czech—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2013)
    • Finnish—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Service Pronouncements (2013), Handbook of the Code of Ethics for Professional Accountants (2013)
    • Farsi—Professional Accountancy Organization Development Committee Perspectives (2012) 
    • French—Reporting on Audited Financial Statements: Proposed New and Revised International Standards on Auditing (ISAs) (2013), Handbook of International Public Sector Accounting Pronouncements (2012)
    • Georgian—Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (2010)
    • Hungarian—Statement of Membership Obligations (SMOs) 1-7 (Revised) (2012), International Education Standards (IES) 1,5,6,7 (Various Years)
    • Kazakh—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012), Handbook of International Public Sector Accounting Pronouncements (2013)
    • Latvian—International Standard on Review Engagements 2400 (Revised 2012): Engagements to Review Historical Financial Statements (2012)
    • Polish—Guide to Quality Control for Small- and Medium-Sized Practices (2011), Guide to Practice Management for Small- and Medium-Sized Practices (2012)
    • Romanian—Proposals for Enhancing the Auditor’s Report: Potential Impact on Audits of Unlisted Entities (2013)
    • Russian—Handbook of International Quality Control, Auditing, Review, Other Assurance and Related Services Pronouncements - Part I (2013)
    • Spanish—Global Digest (September and October 2013), IFAC Update (September and November 2013), Translations & Permissions November eNews (2013)
    • Thai—International Education Standard (IES) 6, Initial Professional Development – Assessment of Professional Competence (Revised) (2013), Handbook of the Code of Ethics for Professional Accountants (2012), International Auditing Practice Note 100 – Special Consideration in Auditing Financial Instrument (2013)
    • Turkish—International Standards on Auditing (ISAs), 300-520 (2012)
    • Ukrainian—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012)
    Copyright Reminder

    IFAC is encouraged by the numerous translation efforts and activities by member bodies, regulatory authorities, and others internationally and views these efforts as progress toward global adoption and implementation of the international standards. However, there have been multiple instances of neglect regarding adherence to copyright protocol. IFAC asks that the proper steps be taken to ensure inclusion of relevant copyright statements and other formalities in the publication of any IFAC materials, including translations. Furthermore, IFAC requests that member bodies remind adopting authorities to ensure that they have the necessary translation or reproduction permission from IFAC, and to attribute content appropriately. Please contact Translations and Permissions (permissions@ifac.org) with any questions.

  • IFAC Guide to Review Engagements

    Andreas Noodt
    Member, IFAC SMP Committee
    FEE-ICAEW Joint Event: Audit exemption: How can accountants support small businesses?
    Brussels, Belgium English

    Andreas Noodt, member, IFAC Small and Medium Practices Committee, speaks at FEE & ICAEW Event about the SMP Commitee's Guide to Review Engagements. The Guide, published in December 2013, aims to provide implementation support for practitioners in conducting review engagements in compliance with International Standard on Review Engagements (ISRE) 2400 (Revised). 

  • IFAC Response to Eurostats Implementing European Public Sector Accounting Standards (EPSAS) for EU Member States

    Public consultation on future EPSAS governance principles and structures

    IFAC has strongly promoted the need for improved transparency and accountability in the public sector. In our view, robust financial reporting is essential for governments and their agencies to discharge their accountability obligations to their citizens and other resource providers. We, therefore, welcome this initiative to develop and strengthen financial reporting in the public sector within the European Union. 

    IFAC
    English

  • Think CFOs Only Handle Finances? How Tomorrow's Finance Leaders Are Evolving

    IFAC News, January 2014 English

    In addition to their traditional roles as financial gatekeepers, chief financial officers (CFOs) and others in related finance leadership roles are now expected to participate in driving organizations toward achieving their objectives. As part of organizational leadership, CFOs are expected to increase their support of strategic and operational decision making in a “business partnering” capacity, in addition to fulfilling traditional stewardship responsibilities relating to governance, compliance, and control.

    Seeking a global debate among professional accountancy organizations, employers of professional accountants, and other stakeholders on the key implications for the education, training, and development of professional accountants, the IFAC Professional Accountants in Business (PAIB) Committee recently released The Role and Expectations of a CFO: A Global Debate on Preparing Accountants for Finance Leadership as a starting point.

    The Discussion Paper establishes a principles-based framework for understanding the changing expectations, scope, and mandate of the CFO and related finance leadership roles. The initiative seeks to capture the key requirements of the CFO role and highlight what professional accountants need to do to prepare for leadership roles in finance; support professional accountancy organizations (PAOs) and employers in their efforts to prepare professional accountants for career progression to finance leadership; and highlight the benefits of a professional accountant serving as the CFO.

    IFAC encourages a global dialogue involving a broad range of stakeholders, including PAOs and employers, who prepare accountants for finance leadership; regulators, who are striving for well-governed organizations and market integrity; and professional accountants, who need to consider how to develop the necessary competences for finance leadership, such as through appropriate education and experience, as well as lifelong learning.

    IFAC seeks responses and perspectives on five key questions:

    • What are the main requirements and expectations of CFOs and finance leaders?
    • What are the implications for skills and competency needed?
    • What are the key actions for PAOs and employers to prepare professional accountants for finance leadership?
    • What are the main factors for professional accountants to consider in striving for finance leadership?
    • What might regulators and other stakeholders do to influence the professionalism of finance leadership?

    The Discussion Paper supplements outreach through various forums to facilitate discussion and closer relationships between professional accountants, PAOs, employers, regulators, and other stakeholders, the first of which was the Global PAIB Forum in Beijing, China, on October 16, 2013, hosted by the Chinese Institute of CPAs. 

    Respondents can also submit their comments electronically through the IFAC website, using the “Submit a Comment” button on the Discussion Paper page (in Publications & Resources). An At a Glance and Resources are also available.

  • IFAC SMP Quick Poll: 2013 Year-End Round-Up

    This report provides a summary and, where appropriate, analysis and commentary including possible limitations of the data from the poll conducted November 15-December 31, 2013. This edition of the poll received 3,709 responses and was conducted in 17 languages.

    IFAC
    English

  • IFAC SMP Poll Reflects Improving Economic Conditions

    New York, New York English

    The most recent IFAC SMP Quick Poll of small- and medium-sized accounting practices (SMPs) indicated that fewer of their small business clients are burdened by economic uncertainty, perhaps suggesting a more favorable economic climate and signaling future growth in this sector.

    “Over the last few years, economic uncertainty has cast a shadow over SMPs and their clients,” commented SMP Committee Chair Giancarlo Attolini. “Improving conditions in the small business sector, a barometer for economic growth, are a terrific sign for SMP professionals and for the economy at large. As their clients prepare for growth, SMPs will, in turn, also help propel the local economies in which they operate.”

    When asked for input regarding the International Auditing and Assurance Standards Board’s 2013 Auditor Reporting Exposure Draft, which proposed significant changes to auditor reporting, respondents were generally supportive. While only a small minority thought unlisted entities would voluntarily opt to disclose key audit matters, most agreed with the proposal to require a statement on going concern in all audit reports.

    The poll also shed light on the value of various services and projections for their relative growth. Accounting compilation and other non-assurance/related services proved to be the fastest growing sources of revenue for SMPs, by a significant margin, over audit and assurance. Roughly half of the respondents acknowledged the value of integrated reporting to small- and medium-sized entities (SMEs), and about half predict that within five years, SME clients will ask for assistance with integrated reporting.

    For additional findings and a complete summary of results, see the IFAC SMP Quick Poll, 2013 Year-End Round-Up in the SMP Committee area of the IFAC site: www.ifac.org/SMP. Due to unbalanced response rates by region, results may not be statistically representative of global or regional populations of SMPs.

    The year-end 2013 poll received 3,709 responses and was conducted in 17 languages from November 15 to December 31. The poll is intended to take a snapshot of key challenges and trends influencing SMPs globally. IFAC wishes to thank the many member and regional organizations that helped with translation and distribution of the poll.

    About the SMP Committee
    The SMP Committee of the International Federation of Accountants (IFAC) represents the interests of professional accountants operating in small- and medium-sized practices (SMPs). The committee develops guidance and tools and works to ensure the needs of the SMPs are considered by standard setters, regulators, and policy makers. The committee also speaks out on behalf of SMPs to raise awareness of their role and value, especially in supporting SMEs, and the importance of the small business sector overall.

    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 179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

  • IFAC and ICAS Highlight Financial Reporting Challenges for IASB

    New York, New York English

    As the International Accounting Standards Board (IASB) undertakes work that has the potential to shape the future of financial reporting across the globe, the International Federation of Accountants (IFAC) and the Institute of Chartered Accountants of Scotland (ICAS) have collaborated to encourage engagement and debate.

    The joint IFAC/ICAS paper, Do We Need a Roadmap for Financial Reporting?, seeks to align the theoretical considerations with the practical ones, and generate debate and discussion that can assist the IASB as it begins to consider revisions to the existing Conceptual Framework. The IASB issued a Discussion Paper exploring possible changes to the IASB’s Conceptual Framework for Financial Reporting in July 2013. The comment period ended on January 14, 2014 and an exposure draft is expected to be published later this year. The IFAC/ICAS paper has been prepared to complement the individual comment letters that both IFAC and ICAS submitted to the IASB.

    In the paper, IFAC and ICAS raise some fundamental questions and issues that should be considered by the IASB, including:

    • Who are financial statements for?
    • What is the purpose of financial statements?
    • What role should the Conceptual Framework serve?
    • What items should be included in assets and liabilities?
    • What does ‘financial performance’ mean?

    “These questions get right to the heart of how companies communicate with the financial markets,” said Fayez Choudhury, CEO of IFAC. “The basic building blocks of financial statements have existed for decades and it is important to undertake a serious assessment of whether they remain fit for purpose.”

    Anton Colella, CEO of ICAS, said, “The Conceptual Framework sets the direction of travel for financial reporting globally.  The IASB has stated that it will focus on ‘updating, improving and filling in gaps’ of the current Framework. Our overarching question is: is this sufficient or do we need a more fundamental re-think?”

    The paper does not contain answers to all of these difficult questions, but aims to stimulate the debate and encourage those with a stake in financial reporting to engage and assist the IASB with its endeavour.

    About ICAS
    ICAS is a leading professional body for Chartered Accountants (CAs), with over 20,000 members worldwide. ICAS is an educator, regulator and thought leader.  

    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 179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

    Notes
    The IFAC/ICAS paper, Do we need a roadmap for financial reporting? Developing the IASB’s Conceptual Framework, is available from the ICAS website at www.icas.org.uk/icas-ifac-roadmap and from the IFAC website at www.ifac.org/publications-resources/do-we-need-roadmap-financial-reporting.

    Further information on the IASB’s Conceptual Framework project and the Discussion Paper: A Review of the Conceptual Framework for Financial Reporting is available at www.ifrs.org/Current-Projects/IASB-Projects/Conceptual-Framework/Pages/Conceptual-Framework-Summary.aspx.

  • Do We Need A Roadmap For Financial Reporting?

    Developing the IASB's Conceptual Framework

    IFAC and the Institute of Chartered Accountants of Scotland (ICAS) have collaborated on this paper in order to highlight some of the key issues to be considered in developing the International Accounting Standards Board’s (IASB)’s Conceptual Framework. The IASB initiative, in taking forward the difficult challenge of reviewing and updating its conceptual framework, is welcomed. IFAC and ICAS believe that it is important to engage all financial reporting stakeholders in the debate on the Conceptual Framework, as this will potentially become the roadmap for future financial reporting.

    IFAC
    English

  • IFAC Response to the IASB Discussion Paper, A Review of the Conceptual Framework for Financial Reporting

    In response to the International Accounting Standards Board (IASB)'s Discussion Paper, A Review of the Conceptual Framework for Financial Reporting, IFAC submitted a comment letter. IFAC strongly supports the development of the Conceptual Framework to extend and clarify the principles that underpin International Financial Reporting Standards (IFRS), as it is central to strengthening the credibility and understandability of general purpose financial reporting.
    IFAC
    English
Subscribe to IFAC