The International Federation of Accountants (IFAC) is seeking an exceptional individual for the fulltime position of Managing Director, Professional Standards (MD).

IFAC serves the public interest by contributing to the development of strong and sustainable organizations, markets, and economies. As part of its public interest mandate, IFAC contributes to the development of high-quality international standards by facilitating and resourcing standard-setting by the following independent Standard-Setting Boards (SSBs): the International Auditing and Assurance Standards Board (IAASB), the International Accounting Education Standards Board (IAESB), the International Ethics Standards Board for Accountants (IESBA), and the International Public Sector Accounting Standards Board (IPSASB).

The MD reports functionally to the chairs of the independent SSBs and administratively to IFAC’s chief executive officer. He/she is a key resource to the SSB chairs, and acts as a liaison between the SSBs and the Monitoring Group and Public Interest Oversight Board (PIOB). He/she maintains relationships with key stakeholders and is a spokesperson for the SSBs.

The MD is the SSBs’ primary liaison with IFAC’s chief executive officer and Board, and oversees the SSB senior management. He/she ordinarily is not involved in the day-to-day standard-setting activities and operations of the boards.

The position calls for a senior level individual who is prominent in the international standard-setting and regulatory community. The MD should have technical and standard-setting experience, as well as knowledge of and practical experience in a range of professional issues, with special emphasis on auditing, ethics, accounting education, and public sector accounting. He/she should be articulate, confident, and exercise sound political judgment in interactions with the press, members of the profession, and the regulatory community at both the national and international levels.

The position is based in the IFAC office in New York or Toronto—preferably New York. It is not required for the MD to be a professional accountant. Applications from individuals who have had a direct relationship with an audit firm are welcome; however, these individuals should be able to implement safeguards against any threats or perceived threats of their independence. The role requires extensive international travel.

This position has become available due to the retirement of Jim Sylph, Executive Director, Professional Standards and External Relations in June 2014. The position and title have been modified to reinforce further the independence of the SSBs.

For further information about the position, please see the job description on the IFAC website at www.ifac.org/careers. Applications are due by February 15, 2014.

*Notes to Editors

About the Independent SSBs

The independent SSBs serve the public interest as follows:

• IAASB: by setting high-quality international standards for auditing, assurance, and other related standards, and by facilitating the convergence of international and national auditing and assurance standards. In doing so, the IAASB enhances the quality and consistency of practice throughout the world and strengthens public confidence in the global auditing and assurance profession. For more information, go to www.iaasb.org, or click on the relevant link: Terms of Reference / IAASB Members / IAASB Annual Report
• IAESB: by strengthening the worldwide accountancy profession through the development and enhancement of professional accountancy education, which encompasses knowledge, skills, values, ethics, and attitudes. For more information, go to www.iaesb.org, or click on the relevant link: Terms of Reference / IAESB Members / IAESB Annual Report
• IESBA: by setting high-quality ethics standards for professional accountants, including auditor independence requirements, through the development of a robust, internationally appropriate code of ethics, and by facilitating the convergence of international and national ethics standards. In doing so, the IESBA enhances the quality and consistency of services provided by professional accountants throughout the world and strengthens public confidence in the global accountancy profession. For more information, go to www.ethicsboard.org, or click on the relevant link: Terms of Reference / IESBA Members / IESBA Annual Report
• IPSASB: by developing high-quality International Public Sector Accounting Standards (IPSASs), guidance, and resources for use by public sector entities around the world for preparation of general purpose financial statements. It issues and promotes benchmark guidance and facilitates the exchange of information among accountants and those who work in the public sector. For more information, go to https://www.ifac.org/public-sector, or click on the relevant link: Terms of Reference / IPSASB Members

The independent SSBs follow a rigorous due process to ensure that the views of those affected by their pronouncements are thoroughly considered.

The IAASB, IAESB, and IESBA each has a consultative advisory group (CAG). The CAGs are an integral part of the boards’ formal process of consultation, and provide valuable public interest input on the boards’ agendas, project timetables, priorities, and technical issues.

The Public Interest Oversight Board (PIOB) oversees the IAASB, IAESB, and IESBA (and their respective CAGs). The PIOB’s mandate is to ensure that these boards follow due process and are responsive to the public interest; ensure the completeness of their strategies and work programs; and oversee the process of nominations to the boards and their CAGs. IFAC and the Monitoring Group are currently in the process of determining the best approach to public interest oversight for the IPSASB.

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 179 professional accountancy bodies in 130 countries, representing approximately 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC supports the setting of auditing and assurance, ethics, education, and public sector accounting standards and develops guidance to encourage high-quality performance by professional accountants in business.

The International Public Sector Accounting Standards Board (IPSASB) has published Exposure Draft (ED) 54, Reporting Service Performance Information.

ED 54 builds on a consultation paper issued in 2011, and provides good practice guidelines on reporting service performance information. Development of this ED reflects the IPSASB’s commitment to addressing public sector-specific reporting issues, including those that relate to information additional to the financial statements.

“Service provision is the primary function of the vast majority of public sector entities,” said IPSASB Chair Andreas Bergmann. “Service performance information is essential for users’ evaluations of the services provided and the efficient and effective use of resources by public sector entities to deliver those services. ED 54 provides guidance that aims to support the quality of service performance information presently reported by entities and provide a useful framework for entities that have not yet started to report service performance information.”

 ED 54 provides principles applicable to the presentation of service performance information and definitions that aim to establish a standardized service performance information terminology. It allows that service performance information may be presented in either the same report as the financial statements or in a separate report, and provides factors to consider when making that decision. It addresses the reporting entity and reporting period for service performance information. ED 54 also provides guidance on the choice of performance indicators that show an entity’s achievements with respect to its service performance objectives, disclosures about the basis of the reported information, and service performance related narrative discussion and analysis.

How to Comment
To access the ED and the At-a-Glance summary of the ED, or to submit a comment, please visit the IPSASB website. Comments on the ED are requested by May 31, 2014. The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of these EDs 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. The IPSASB receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland.

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.

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This summary provides an overview of Exposure Draft (ED) 54, Reporting Service Performance Information.

The International Public Sector Accounting Standards Board (IPSASB) has published an Exposure Draft (ED 53), First-Time Adoption of Accrual Basis International Public Sector Accounting Standards. This proposed standard, which is applicable to entities that present accrual basis financial statements during the process of adopting and implementing International Public Sector Accounting Standards (IPSASs), provides exemptions during the transition period.

“Entities understand that adoption of accrual basis IPSASs is a complex process that requires time and detailed guidance,” said IPSASB Chair Andreas Bergmann. “This ED provides a helpful starting point for first-time adoption of accrual basis IPSASs. It grants specific transitional exemptions from the requirements in IPSASs where the cost of complying would likely exceed the benefits to users of financial statements. As a global standard setter, the IPSASB does not give entity specific guidance on how to manage the IPSAS implementation process. We have compiled good practices on relevant areas in Study 14 Transition to the Accrual Basis of Accounting: Guidance for Governments and Government Entities, which is available from our website in English and Spanish.”

Specifically, ED 53 allows a first-time adopter three years to recognize certain assets and liabilities. This transition period acknowledges that entities may not have comprehensive information about the existence of assets and liabilities, and that considerable effort may be required to identify, measure, and classify assets and liabilities in accordance with IPSASs. ED 53 also allows a first-time adopter to determine a surrogate for acquisition cost or depreciated cost of an asset when reliable information about the historical cost of an asset is not available.

ED 53 encourages, but does not require, entities to provide comparative information in their transitional IPSAS financial statements or their first IPSAS financial statements. Where comparative information is presented, ED 53 states that the comparative information should be adjusted retrospectively to the extent that information is available. Where an entity elects not to present comparative information, ED 53 specifies those financial statements that an entity’s transitional IPSAS financial statements must, at a minimum, include.

The ED states that a reconciliation should be presented in the notes to an entity’s transitional IPSAS financial statements or first IPSAS financial statements. A reconciliation is not required where the entity previously applied the cash basis of accounting. A reconciliation is important for users to understand the relationship between information presented under the previous basis of accounting and the IPSAS information.

ED 53 identifies those transitional exemptions that impact fair presentation and an entity’s ability to assert compliance with accrual basis IPSASs, and separates them from those that do not. The transitional exemptions in ED 53 will replace many of the existing transitional provisions contained in IPSASs. Future IPSASs will only prescribe transitional provisions to address changes to a standard where entities already apply that standard.

How to Comment
To access the ED and the At-a-Glance document, which provides a summary of the ED, or to submit a comment, please visit the IPSASB website at www.ipsasb.org. Comments on the ED are requested by February 15, 2014. The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of these EDs 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. The IPSASB receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland.

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 173 members and associates in 129 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

This summary provides an overview of Exposure Draft (ED 53), First-Time Adoption of Accrual Basis International Public Sector Accounting Standards. 

The International Public Sector Accounting Standards Board (IPSASB) has published the following five exposure drafts (EDs):

• ED 48, Separate Financial Statements;
• ED 49, Consolidated Financial Statements;
• ED 50, Investments in Associates and Joint Ventures;
• ED 51, Joint Arrangements; and,
• ED 52, Disclosure of Interests in Other Entities.

These five EDs will replace current requirements in three International Public Sector Accounting Standards (IPSASs):

• IPSAS 6, Consolidated and Separate Financial Statements;
• IPSAS 7, Investments in Associates; and,
• IPSAS 8, Interests in Joint Ventures. 

A key part of the IPSASB’s strategy is to converge IPSASs, to the extent appropriate, with the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB). The IPSASB developed these EDs in light of the relevant IFRSs, while also considering public sector-specific differences and, as a result, these five EDs propose some important changes to make the standards appropriate for application in the public sector.

“These five EDs present proposals on how public sector entities, including governments, should account for their interests in other entities,” said IPSASB Chair Andreas Bergmann. “Comprehensive and transparent reporting of interests in other entities is essential given the wide range of government interventions in the economy and the scale of those interventions.”

The following highlights particular aspects of each ED:

ED 48, Separate Financial Statements

The requirements for separate financial statements in ED 48 are very similar to the current requirements for separate financial statements in IPSAS 6.

ED 49, Consolidated Financial Statements

ED 49 will supersede the requirements in IPSAS 6 regarding consolidated financial statements. ED 49 still requires that control be assessed having regard to benefits and power, but it proposes a new definition of control and considerably more guidance on assessing control. The definition of control focuses on an entity’s ability to influence the nature and amount of benefits through its power over another entity. This new definition of control may introduce additional requirements that could impact previous assessments of control.

ED 49 introduces the concept of investment entities. Generally an investment entity measures its investments in controlled entities at fair value through surplus or deficit. An entity that controls an investment entity retains this method of accounting for an investment entity’s investments in its consolidated financial statements.

In contrast with IPSAS 6, ED 49 no longer permits an exemption from consolidation for temporarily controlled entities. Consistent with its goal of minimizing differences between IPSASs and statistical reporting guidance, the IPSASB has aligned the principles in ED 49 with the Government Finance Statistics Manual 2013 (GFSM 2013) where feasible.

ED 50, Investments in Associates and Joint Ventures

ED 50 explains the application of the equity method of accounting, which is to be used in accounting for investments in associates and joint ventures. The proposals are very similar to the current guidance in IPSAS 7; the key difference is that the ED encompasses joint ventures. ED 50 and ED 51 propose that investments in joint ventures be accounted for using the equity method of accounting.

In contrast with IPSAS 7, ED 50 does not permit a different accounting treatment for temporary investments. 

ED 51, Joint Arrangements

ED 51 contains proposals for classifying and accounting for different types of joint arrangements. It proposes that joint arrangements be classified as either joint operations or joint ventures. In a joint operation, the parties to the arrangement have rights to the assets and obligations for the liabilities relating to the arrangement. In a joint venture, the parties to the arrangement have rights to the net assets of the arrangement. This proposed classification differs from IPSAS 8, which referred to three types of arrangements (jointly controlled entities, jointly controlled operations, and jointly controlled assets).

ED 51 proposes that an entity account for its interest in a joint operation by recognizing its share of the assets, liabilities, revenue, and expenses of the joint arrangement and that joint ventures be accounted for in consolidated financial statements using the equity method. Previously, IPSAS 8 permitted jointly controlled entities to be accounted for using either the equity method or proportionate consolidation.

ED 52, Disclosure of Interests in Other Entities

ED 52 brings together the disclosures that were previously included in IPSASs 6–8 and introduces certain new disclosure requirements, including those related to structured entities that are not consolidated.

How to Comment
To access the EDs and the At-a-Glance document, which provides a summary of the EDs, or to submit a comment, please visit the IPSASB website at www.ipsasb.org. Comments on the EDs are requested by February 28, 2014. The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of these EDs 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. The IPSASB receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland.

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 173 members and associates in 129 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

This summary provides an overview of five Exposure Drafts (EDs): ED 48, Separate Financial Statements; ED 49, Consolidated Financial Statements; ED 50, Investments in Associates and Joint Ventures; ED 51, Joint Arrangements; and ED 52,