The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, held its 35^th Council Meeting in Cape Town, South Africa this week. As part of the meeting, IFAC held its annual seminar, which focused this year on integrated reporting.

The seminar, A Fundamental Shift in Corporate Reporting, featured a keynote address by Prof. Mervyn King SC, chair of the International Integrated Reporting Council and chair of the King Committee on Corporate Governance in South Africa, which has published the King I, King II, and King III Reports on Corporate Governance.

This year’s seminar focused on drawing upon the experiences and perspectives of integrated reporting in practical terms—the South African experience, how to implement integrated reporting, and how to address the challenges and opportunities for small- and medium-sized entities and accountancy practices.

“This year’s seminar recognized the vital role the accountancy profession plays in bringing integrated reporting to more organizations,” said IFAC President Göran Tidström. “Integrated reporting isn’t just a trend—it reflects global changes in best practices and stakeholder expectations and will provide a more complete picture of the health and wellbeing of organizations.”

The seminar included high-profile speakers including Prof. Alexandra Watson, College of Accounting, University of Cape Town; Malcolm Gray, Portfolio Manager, Responsible Investment Portfolios, Investec Asset Management; Graham Terry, Senior Executive: Strategy and Thought Leadership, South African Institute of Chartered Accountants; Ian Jameson, Chief Advisor, Climate Change and Sustainable Development: Sustainability Division, Eskom; Helen Brand, Chief Executive, Association of Chartered Certified Accountants; Michael H. Rea, Partner, Integrated Reporting & Assurance Services; and Nicky van Hille, Director, The Moss Group. Roger Tabor, Chair of IFAC’s Professional Accountants in Business Committee, moderated the seminar.

Highlights from the seminar will be available on the IFAC website in the coming weeks.

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 167 members and associates in 127 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) today presented its International Gold Service Award to Professor Mervyn King. IFAC President Göran Tidström presented the prestigious award, which recognizes outstanding contributions to the accountancy profession, during IFAC’s annual Council Meeting.

In his remarks, Mr. Tidström highlighted Mervyn King’s substantial contributions to corporate governance and integrated reporting. In particular, in his role as chair of the King Committee on Corporate Governance in South Africa, Mr. King has demonstrated extraordinary foresight and dedication, pioneering the drafting of the international benchmark for corporate governance guidelines known as King I (now King III), which have been lauded for their inclusive and integrated approach. King now presides at the center of the integrated reporting movement, chairing the International Integrated Reporting Council (IIRC), which has been charged with drafting an internationally accepted integrated reporting framework. Prior to the IIRC’s formation, King led the accelerated development of such a framework for South Africa, when the country, in 2010, became one of the first in the world to require publicly listed companies to produce integrated reports. 

“It is my privilege to present the IFAC International Gold Service Award to Mervyn King here in his home country, where his work in corporate governance and integrated reporting has made South Africa a role model for the rest of the world,” said Göran Tidström. “His leadership and achievements have set the bar higher, challenging the profession worldwide to grow and evolve. His contributions have forever changed the way businesses measure and report on their performance, for the betterment of the accountancy profession, the global business community, and society as a whole.”

King’s illustrious and varied career also includes his work as an attorney, arbitrator, mediator, and advisor. He served as a judge in the Supreme Court of South Africa for two years and as the South African judge at the International Chamber of Commerce International Court of Arbitration in Paris for nine years. He has received numerous academic accolades, including being named Professor Extraordinaire at the University of South Africa in the College of Economic and Management Sciences. He holds an honorary doctor of laws from the University of the Witwatersrand, in addition to numerous honorary appointments and other awards.

About the IFAC International Gold Service Award
The IFAC International Gold Service Award was created by the IFAC Council in 2010 to recognize outstanding individual contributions to the accountancy profession. 

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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This Comparison Guide is designed to explain all the revisions to the Statements of Membership Obligations. It provides an explanation of the revisions and serves as a useful tool to assist member organizations and their technical staff to identify changes and understand and address them.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries and jurisdictions, along with the World Bank, the Inter-American Development Bank, and the Global Public Policy Committee recently concluded the sixth annual Conference for Accounting and Accountability for Regional Economic Growth, or CReCER (Contabilidad y Responsabilidad para el Crecimiento Económico Regional) in Managua, Nicaragua with the support of the Inter-American Accounting Association, an IFAC recognized regional organization. The 2012 CReCER events were hosted and executed by the Colegio de Contadores Públicos de Nicaragua (CCPN), an IFAC member body.

This year’s three-day conference centered on providing quality financial information, which in turn supports economic development, and featured high-level global representatives and leaders in the accountancy profession. Attendance at the conference was high—more than 600 attendees and 80 speakers, including representatives from more than 30 countries from the region and world, participated.

“The discussions and debates that take place at CReCER each year drive strategic objectives and collaborative initiatives for the coming year,” said IFAC Deputy President Warren Allen, who spoke during multiple sessions at CReCER. “This opportunity to discuss how to advance the profession and ensure high-quality financial information in Latin America and the Caribbean is critical and extremely productive.”

The conference received a great deal of support and involvement from the Nicaraguan government. The Minister of Finance and Public Credit, Iván Acosta Montalván, and Dr. Paul Oquist, Minister, Private Secretariat of National Policy, both spoke during two sessions, highlighting the important developments and progress of the Nicaraguan economy and citing the crucial role of high-quality financial information to sustaining future growth. Comandante Bayardo Arce, Economic Advisor to the President of the Republic of Nicaragua, spoke at the closing plenary session, congratulating the CCPN and global partners of the CReCER initiative for holding such a relevant event in Nicaragua. He highlighted the importance of the accounting profession to increasing the transparency and auditability of public finances.

The conference included sessions on implementation of international accounting and auditing standards, integrated reporting, quality assurance and fraud. Additionally, many meetings were held in conjunction with CReCER, including regional standard setters meetings with Arnold Schilder, chairman of the International Auditing and Assurance Standards Board, and Andreas Bergmann, chair of the International Public Sector Accounting Standards Board, and a gathering of the presidents of regional professional accountancy organizations.

Presentations from the conference will be available on the IFAC website soon.

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 167 members and associates in 127 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), the global organization for the accountancy profession, today released for comment the Professional Accountants in Business Strategy and Work Plan for 2013-2016.

Since more than half of all professional accountants in the world work in business and the public and not-for-profit sectors, addressing their needs is of great importance to IFAC and the international accountancy organizations that comprise IFAC’s membership.

The strategy and specific initiatives aim to improve recognition of the diverse roles professional accountants in business perform and how they need to be positioned to drive successful and sustainable organizations. Professional accountants in business can be found working as employees or advisors, often at senior levels such as chief financial officer or controller. They have the collective power to significantly influence their organizations in implementing effective governance and an ethical culture supported by integrated risk management and internal control, sustainable leadership, and effective reporting and performance management.

“The Strategy and Work Plan for 2013–2016 sets out a vision to achieve global recognition of the contribution of professional accountants in business as partners in facilitating sustainable organizational success,” said Roger Tabor, chair of the Professional Accountants in Business (PAIB) Committee, which is tasked with carrying out the strategy and initiatives. “The key theme supporting this vision is that professional accountants in business should facilitate integrated governance, thinking, and management, as well as reporting, in organizations. These are the critical areas that organizations are grappling with and require the accountancy profession to raise awareness of their contribution and ensure that their competency matches the needs and expectations of their employing organizations.”

The proposed Strategy and Work Plan for 2013-2016 includes specifics for planned projects and initiatives. IFAC member organizations and other stakeholders are invited to provide feedback on the proposals.

How to Comment
IFAC and the PAIB Committee invite all stakeholders to comment. To access the Exposure Draft and submit a comment, visit the PAIB Committee section of the IFAC website. Comments on the Exposure Draft are requested by January 31, 2013. You must register on the IFAC website to submit a comment.

About the PAIB Committee
The PAIB Committee serves IFAC member bodies and professional accountants worldwide who work in commerce, industry, financial services, education, and the public and the not-for-profit sectors. Its aim is to promote and contribute to the value of professional accountants in business by increasing awareness of the important roles professional accountants play, supporting member bodies in enhancing the competence of their members, and facilitating the communication and sharing of good practices and ideas.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has issued Integrating Governance for Sustainable Success, which uses case studies to analyze how professional accountants in business support the performance of their organizations by integrating governance into the key drivers of sustainable organizational success.

“Governance is still too often seen primarily as a compliance exercise rather than a means for driving the sustainable performance of an organization,” said Roger Tabor, chair of the PAIB Committee. “Successful organizations have a governance structure and culture that go beyond conformance with regulations and support the organization’s efforts to improve performance. Governance should be part of the DNA of an organization.”

The new report illustrates that good governance is about more than the basic protection of stakeholders’ interests or compliance designed to satisfy regulatory requirements. Rather, integrating good governance throughout an organization offers powerful support to the way sustainable value is created. The report addresses how professional accountants support their organizations to build good governance into the entire cycle of strategic planning, resource utilization, value creation, accountability, and assurance. Such a holistic approach ensures that governance is integrated into all aspects of an organization.

“Professional accountants are typically in a position of strategic or functional leadership or are otherwise well placed to partner with colleagues in evaluating and improving governance,” said John Cahill, chair of the PAIB Committee’s Governance and Ethics Task Force. “This report usefully demonstrates how they can increase their organizations’ sustainable performance.”

About the PAIB Committee
The PAIB Committee serves IFAC member bodies and professional accountants worldwide who work in commerce, industry, financial services, education, and the public and the not-for-profit sectors. Its aim is to promote and contribute to the value of professional accountants in business by increasing awareness of the important roles professional accountants play, supporting member bodies in enhancing the competence of their members, and facilitating the communication and sharing of good practices and ideas.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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IFAC submitted this comment letter to Public Expenditure and Financial Accountability (PEFA) on its public consultation for Guidance Note on Sequencing PFM Reforms, specifically on the section that deals with “developing the accounting system.” The comment letter addresses multiple issues, including the importance of robust arrangements for public sector financial management, the use of International Public Sector Accounting Standards, and implementation of public sector financial management reforms.

The International Federation of Accountants (IFAC) and the International Valuation Standards Council (IVSC) have renewed their Memorandum of Understanding (MoU), first signed in 2009.

The MoU creates a cooperation process to enable valuers and auditors to obtain a better mutual understanding of standards relevant to financial statements, and will help both organizations pursue their objective of maintaining confidence in business reporting in both the public and private sectors. Actions under the MoU are also designed to promote the credibility and acceptability of valuations prepared in accordance with the International Valuation Standards.

The MoU reflects the IVSC’s and IFAC’s shared conviction that the transparency provided by high-quality international standards contributes significantly to the effective functioning of capital markets and economic growth.  The MoU acknowledges the ongoing working relationships between the IVSC, IFAC, and the International Auditing and Assurance Standards Board (IAASB), which is supported by IFAC. The MoU also anticipates closer working relationships between IVSC and other IFAC activity groups.

Roel Campos, Interim Chairman of the Board of Trustees for the IVSC, states, “This agreement to renew the earlier Memorandum of Understanding represents an ongoing commitment by both IVSC and IFAC to strengthen cooperation between the two organizations. It demonstrates the cohesive and united approach of the IVSC, IFAC, and its independent standard-setting boards to maintaining standards as global markets continue to develop.”

“The ongoing financial crisis has shown the importance of transparency in financial reporting by both private and public sector entities,” said Göran Tidström, president of IFAC.  “The IVSC has served as a member of the IAASB’s Consultative Advisory Group, and the organizations are both members of the Private Sector Task Force (PSTF). This agreement strengthens the already close ties between the IVSC and IFAC and will serve as a platform for further cooperation.”

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

About the IVSC
The IVSC is an independent, not-for-profit, private sector organization. As the established international standard setter for valuation, the IVSC develops and maintains standards for the reporting and disclosure of valuations, especially those that will be relied upon by investors and other third party stakeholders. It also supports the need to develop a framework of guidance on best practice for valuations of the various classes of assets and liabilities and for the consistent delivery of the standards by properly trained professionals around the globe.

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