The International Public Sector Accounting Standards Board (IPSASB) today released for comment an exposure draft (ED) and two Consultation Papers related to its project to develop a Conceptual Framework for the general purpose financial reporting of public sector entities. The Conceptual Framework is the IPSASB’s key strategic objective for 2010–2012 and is of fundamental importance to the future of global public sector standard setting for at least the next 10–15 years.

Conceptual Framework Exposure Draft 1 (CF-ED1), Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Role, Authority, and Scope; Objectives and Users; Qualitative Characteristics; and Reporting Entity, refines the issues highlighted in a Consultation Paper published in 2008 and reflects the IPSASB’s consideration of the responses to that Consultation Paper. CF-ED1 proposes that the objectives of financial reporting should be to provide information for accountability and decision-making purposes. It also proposes that the scope of financial reporting should extend beyond the traditional financial statements to include more comprehensive financial and non-financial information.

The Consultation Paper, Elements and Recognition in Financial Statements, identifies alternative asset and liability-led and revenue and expense-led approaches to financial statements and considers the key characteristics of assets, liabilities, revenue and expenses. It also discusses whether further elements should be defined and examines approaches to the recognition of elements.

The Consultation Paper, Measurement of Assets and Liabilities in Financial Statements, considers the measurement bases that may be appropriate for the elements that are recognized in financial statements. It discusses historical cost, market value, and replacement cost and then examines deprival value as an approach to select the most relevant measurement basis.

Summaries of the Consultation Papers can be found in the “At a Glance” publications, which have been posted along with the Consultation Papers. A staff draft, Key Characteristics of the Public Sector, identifies and provides an overview of some of the main characteristics of the public sector that distinguish it from the private sector and, therefore, have a potential impact on the development of a public sector Conceptual Framework. The IPSASB is not seeking comments on this draft at this time. This document will be further considered by the IPSASB in 2011 and, following approval, will be formally exposed for comment.

“The Conceptual Framework provides the set of principles that underpin the IPSASB’s standard-setting activities over the long term,” said IPSASB Chair Andreas Bergmann. "Given the central role that the Conceptual Framework will play in the IPSASB’s future standard-setting activities, I strongly urge all stakeholders to submit comments on this ED and the two Consultation Papers."

How to Comment
To access the Exposure Draft and Consultation Papers, or to submit a comment, visit the IFAC website at www.ifac.org/Guidance/EXD-Outstanding.php. Comments on the exposure draft and Consultation Papers are requested by June 15, 2011. The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of these documents to their members and employees.

About the IPSASB
The IPSASB (www.ifac.org/publicsector) 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 (www.ifac.org) 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.

The International Auditing and Assurance Standards Board (IAASB) welcomes the issuance of the South African Declaration on International Standards of Supreme Audit Institutions (ISSAIs) (the Declaration), resulting from the 20th INCOSAI, the triennial Congress of the International Organization of Supreme Audit Institutions (INTOSAI). Held in Johannesburg last month, the Congress brought together about 500 delegates representing public sector interests.

Part of the Johannesburg Accords summarizing the results of the Congress, the Declaration represents INTOSAI’s endorsement of a framework comprised of a comprehensive set of ISSAIs and INTOSAI guidance on good governance (INTOSAI GOVs). The ISSAIs and INTOSAI GOVs provide guidance to public sector auditors responsible for financial audit, performance audit, and compliance audit, and also address transparency and accountability, quality control, peer review, and internal audit. The Declaration also calls upon INTOSAI members to use the ISSAI framework as a common frame of reference for public sector auditing by implementing the ISSAIs in accordance with their mandate and national legislation and regulations.

This important milestone for INTOSAI is particularly relevant to the IAASB, because the ISSAIs for financial audits include the clarified International Standards on Auditing (ISAs), as issued by the IAASB, along with supplemental guidance referred to as Practice Notes for each of the 36 clarified ISAs, as developed by INTOSAI’s Financial Audit Subcommittee of the Professional Standards Committee (PSC). The IAASB has observer status at INTOSAI’s PSC meetings and assisted in the development of the Practice Notes.

“The IAASB strongly believes that the ISAs are right for the public sector, and commends INTOSAI’s work to ensure that public sector auditors have the guidance they need to apply the ISAs in their financial audits,” said Prof. Arnold Schilder, chairman of the IAASB. “Much like the completion of the IAASB’s Clarity Project,* the finalization of the ISSAIs represents a significant achievement, and the adoption and implementation of the ISSAIs will contribute to enhanced quality in public sector auditing.”

For more than six years, the IAASB and INTOSAI have maintained a mutually beneficial relationship. In addition to the IAASB’s participation in the PSC, INTOSAI is represented on the IAASB, and INTOSAI experts serve on IAASB task forces as appropriate to provide public sector input into the development of the IAASB’s ISAs. Noted Jim Sylph, IFAC’s executive director, professional standards, “Our partnership with INTOSAI enables us to incorporate public sector input into the development of our ISAs, and we look forward to continuing this relationship as both of our organizations promote the adoption of a single set of standards for financial audits.”

*The Clarity Project, completed by the IAASB in March 2009, resulted in the issuance of 36 ISAs and one International Standard on Quality Control in a new style that is easier to understand, translate, and implement. Approximately half of the ISAs also contain substantive new requirements intended to improve practice in a variety of respects. The new set of clarified ISAs is now in effect for 2010 year-end audits.

About the IAASB
The IAASB (www.iaasb.org) develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by IFAC.

About IFAC
IFAC (www.ifac.org) 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.

About INTOSAI
INTOSAI (www.intosai.org) operates as an umbrella organization for the external government audit community. For more than 50 years it has provided an institutionalized framework for supreme audit institutions to promote development and transfer of knowledge, improve government auditing worldwide and enhance professional capacities, standing and influence of member SAIs in their respective countries. At present, INTOSAI has 189 Full Members and 4 Associated Members.

This document sets out amendments to IPSASs and the related Bases for Conclusions, Comparisons with IFRSs/IASs and guidance. Part I of this document contains amendments that are drawn from the IASB document, Improvements to IFRSs issued in April 2009. The IASB's rationale for its amendments is documented in the related Bases for Conclusions in that IASB document. The effective date of each amendment is included in the IPSAS affected.

The International Public Sector Accounting Standards Board (IPSASB) today published Improvements to IPSASs—2010. The publication completes the IPSASB’s improvements project for 2010. The IPSASB’s improvements project is modeled on the IASB’s annual update program. Improvements are made to existing IPSASs to maintain alignment with International Financial Reporting Standards (IFRSs), as well as other general improvements. The 2010 amendments relate primarily to requirements for recognition, measurement, and disclosure. They do not represent substantive revisions to the content of existing standards.

“The IPSASB continually reassesses the IPSASs to ensure that they remain relevant to users of public sector financial statements," said IPSASB Chair Andreas Bergmann.

Improvements to IPSASs—2010 is available to download free of charge from the IPSASB section of IFAC's Publications and Resources site (web.ifac.org/publications). The IPSASB encourages IFAC members, associates, regional accountancy bodies, and firms to use these materials and to promote their availability to members and employees.

About the IPSASB
The IPSASB (www.ifac.org/publicsector) 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 (www.ifac.org) 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.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 125 countries, has issued an announcement to alert its members and the public of its Notice of the Call for Nominations to IFAC Boards and Committees in 2012.

Both the Notice of the Call for Nominations and its companion guide, Developing a Nominations Strategy, are designed to help the members of IFAC, and others, identify the most qualified person for nomination to each available position on the boards and committees, while also achieving a gender, regional, and professional balance. These in-depth documents, located on the IFAC website, contain strategic and practical advice for nominating organizations, which allows them to make more informed decisions in their selections and to understand the requirements and expectations of the nominees.

The official 2012 Call for Nominations for Boards and Committees supported by IFAC will be issued on January 15, 2011, and nominations may be submitted from January 15 to March 15, 2011.

Each year, roughly one third of the 150+ positions on the boards and committees come up for rotation, though for some of those positions serving members may be re-appointed. The nominating process is designed to ensure a diverse membership, and a transparent and consistent approach to filling available positions. For more information about the nominations strategy, its due process, nominating committee members or for guidance in selecting the best candidate, please visit www.ifac.org/NominatingCommittee.

About IFAC
IFAC (www.ifac.org) 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.

Accountants Must Embrace Change and Seize Opportunities, According to Chief Executive Officers from Around the World

Chief executive officers of accounting institutes from around the world shared their visions on the accountants of the future at the World Congress of Accountants 2010.

The World Congress closed today with the final plenary session titled “Accountants in the Next Decade – Embracing Change and Seizing Opportunities,” which asked the following questions:

• How has the recent global economic crisis changed the environment for the accountancy profession?
• What impact will increased globalization have on the profession?
• How should the audit evolve to meet new needs?
• How might the skills and competencies of accountants change in the years ahead?
• Will accountancy still be an attractive option for young people in the future?

“The clear consensus among the panel was that increased globalization and the recent financial crisis have placed the profession squarely in the spotlight,” said Ian Ball, Chief Executive Officer of IFAC. “Professional accountants play a key role in reporting on financial results and providing assurance on those reports, which is particularly important in this challenging time.”

“Going forward, the profession is certain to continue to evolve,” continued Ball. “For example, integrated reporting—which encompasses an organization’s economic, social, and environmental results—will become the norm, and the profession will play a key role in providing assurance on non-financial results, as well as embedding these results into strategy and performance management. As we lead this transformation, we will need to enhance our collective skills and competencies. We expect these changes will increase the profile of the profession and help us continue to attract the best and brightest to the profession.”

Chaired by Mr. Ball, the plenary session panel also included Alex Malley, CEO, CPA Australia; Barry Melancon, President & CEO, American Institute of Certified Public Accountants; Michael Izza, CEO, Institute of Chartered Accountants of England and Wales; Helen Brand, CE, Association of Chartered Certified Accountants; and Charles Tilley, CEO, Chartered Institute of Management Accountants.

The 18th World Congress of Accountants, hosted by the Malaysian Institute of Accountants and IFAC, was held November 8–11, 2010, in Kuala Lumpur, Malaysia. Featuring the theme Accountants: Sustaining Value Creation, the World Congress offered four plenary sessions and 35 concurrent sessions featuring 183 high-profile speakers from over 40 countries and from organizations including the World Bank, Transparency International, the Financial Stability Board, the European Commission, the International Forum of Independent Audit Regulators, and the International Accounting Standards Board, among others. A record-breaking number of delegates attended—over 6,000 from 134 countries—including professional accountants, international regulators, standard setters, government officials, and corporate leaders. These delegates came together to discuss, share, and debate ideas and global solutions to the issues affecting the profession in the interest of the global economy, investors, and businesses, such as:

• Integrated reporting and sustainability;
• Trends in the roles and responsibilities of professional accountants;
• XBRL and the communication of business information;
• Governance and international standards;
• The role of and challenges for small and medium practices;
• IFRS and the convergence of accounting standards; and
• Islamic finance.

About the International Federation of Accountants (IFAC)
IFAC (www.ifac.org) 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.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 125 countries, today commented on the Monitoring Group’s Review of the IFAC Reforms — Final Report.

In the report, the Monitoring Group states that virtually all of the changes called for by the IFAC Reforms have been implemented. It also acknowledges that the initial implementation of the IFAC Reforms has been a significant undertaking, and it recognizes the numerous achievements with respect to their implementation.

The concept of the IFAC Reforms originated in 2002, when IFAC and a group of six international financial institutions—the Basel Committee on Banking Supervision, the European Commission, the Financial Stability Board, the International Association of Insurance Supervisors, the International Organization of Securities Commissions, and the World Bank (the Monitoring Group)—began a dialogue about the importance of high-quality audits of financial statements and the need to restore and enhance public confidence in financial reporting and auditing. The result of this dialogue was the IFAC Reforms.

The IFAC Reforms changed the structure and processes for the auditing, ethics, and education standard-setting boards supported by IFAC. The Reforms called for the Monitoring Group to perform a five-year review of their implementation.

In addition to recognizing the successful breadth and depth of achievements of the IFAC Reforms, the Monitoring Group has identified a number of near-term actions for IFAC and the standard-setting boards it supports, focused on further enhancing diversity, transparency, and accountability.

“We welcome the publication of this report,” said Ian Ball, CEO of IFAC, “and we appreciate the collaborative manner in which the Monitoring Group has undertaken the review, as well as their recommendations.”

“We are in complete agreement that international standard-setting in the public interest is a challenge that requires ongoing continuous improvement,” concluded Ball, “and we look forward to working with the Monitoring Group in determining how the recommendations they have raised can best be addressed.”

To view the final report, visit: www.iosco.org/monitoring_group/pdf/MG_Doc_4.pdf.

About IFAC
IFAC (www.ifac.org) 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.

The Chinese Auditing Standards Board (CASB) and the International Auditing and Assurance Standards Board (IAASB) met today to discuss convergence of international standards.

“As the largest developing country in the world, China firmly supports the efforts of the International Federation of Accountants (IFAC) and the IAASB to promote international convergence of auditing standards,” stated Dr. Wang Jun, Vice Minister of the Chinese Ministry of Finance and Chairman of the CASB. “The fundamental principle of drafting the Chinese auditing standards is to continuously improve them, as well as achieve continuous and comprehensive convergence with international auditing standards in line with the development of Chinese market economy and the overall trend of economic globalization and international convergence.”

“International convergence of auditing standards—the importance of which has been further manifested during the global financial crisis—is a strategic objective for the IAASB and IFAC,” stated IAASB Chairman Prof. Arnold Schilder. “We applaud the great efforts and the enormous progress that China is making toward international convergence. The Chinese government and the Chinese accountancy profession made the decision to converge and moved rapidly to give effect to that decision. We hope this serves as a model for developing countries and countries with economies in transition.”

Previously, the parties had signed a milestone joint statement in December 2005, which pointed out that establishing and improving a single set of high-quality global auditing standards is a logical response to the trend of economic globalization. It also acknowledged the key role these standards play in reducing the risk of decision-making by investors for efficient capital allocation, as well as in promoting economic development and maintaining financial stability all over the world.

In recent years, the IAASB has conducted the Clarity Project to enhance the clarity of International Standards on Auditing (ISAs), which involved the application of new drafting conventions to all ISAs and substantial revisions of a number of ISAs. On February 27, 2009, the Clarity Project reached its completion with the approval of the Public Interest Oversight Board (PIOB). Auditors worldwide now have access to 36 newly updated and clarified ISAs and a clarified International Standard on Quality Control (ISQC).

In accordance with the principle of continuous and comprehensive convergence, the CASB has completed the revision of Chinese Standards of Audit (CSAs), and achieved full convergence with the clarified ISAs. The revised CSAs were officially released in early November 2010, and are effective for audits of financial statements for periods beginning on or after January 1, 2011. During the process of international convergence, the CASB made limited additions it considered necessary and maintained some standards dealing with matters that are not specially covered in ISAs to reflect China’s unique circumstances and business requirements, such as standards for the verification of capital contributions and communication between predecessor and successor auditors. The IAASB recognizes that such additional requirements may be necessary and are acceptable where they do not conflict with ISAs.

About the CASB and the CICPA
As a specialized board under the Chinese Institute of Certified Public Accountants (CICPA), the CASB is responsible for developing CPA practice standards. Founded in 1988, the CICPA, in line with relevant laws and regulations, exercises the function of, among others, providing services to its members, monitoring service quality and professional ethics of members, regulating the CPA profession and coordinating the relationship within and beyond the CPA profession. The CICPA has more than 7,800 group members and over 170,000 individual members. The CICPA became a member of IFAC in 1997.

About the IAASB
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB 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. 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.