To increase the accessibility of its standards and guidance to accountants worldwide, the International Federation of Accountants (IFAC) Board has approved a proposal to move to one quality translation of IFAC standards per language and to consult with IFAC members, associates and other interested parties on the process to achieve this. As a result, IFAC has released a consultation paper entitled Translation of IFAC Standards that outlines a proposed translation process. The new process is designed to facilitate the ability of member bodies and other qualified organizations to translate IFAC standards and to ensure the timeliness and quality of such translations.

"Our ultimate goal is to achieve one quality translation per language of all IFAC standards," emphasizes IFAC President Fermín del Valle. "If IFAC is to accomplish its mission of encouraging high quality practices by the world's accountants, we must make our standards available to the widest possible audience."

While the official working language of IFAC and its boards and committees is English, IFAC recognizes that it is crucial for practitioners, legislators, regulators, educators, students, and others who work in languages other than English to have access to current IFAC standards in their native language.

IFAC has already initiated the process of strengthening its translation processes. It has created a dedicated translations web page that, among other things, features a translation database based on information submitted by third parties. The database features a listing of IFAC publications that have been translated, along with the name of the translating body and links to a list of key terms, where it exists.

How to Comment
The consultation paper can be viewed at https://www.ifac.org/eds. Comments are requested by June 30, 2008 and may be submitted by email to translations@ifac.org. They can also be faxed to the attention of the Director, Quality Assurance and Member Body Relations at +1 (212) 286-9570, or mailed to IFAC, 545 Fifth Avenue, 14th Floor, New York, NY USA 10017. All comments will be considered a matter of public record and will ultimately be posted on the IFAC website.

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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.

For many governments and public sector entities, social benefit programs - such as social security, the provision of healthcare and unemployment benefits - comprise a highly significant part of their operations. The International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board within the International Federation of Accountants (IFAC), has launched a project on the long-term fiscal sustainability of these programs. The IPSASB is also seeking comments on proposed new requirements designed to improve consistency and transparency in the reporting of certain government social benefits and has issued a consultation paper on related issues, particularly liability recognition.

Long-Term Fiscal Sustainability Project
The IPSASB has undertaken a project on long-term fiscal sustainability and has released a project brief on which it welcomes comments. In developing its project on social benefits, the IPSASB has concluded that financial statements alone may not provide users with enough information to assess the long-term viability of social benefit programs. It has, therefore, undertaken this new project to develop a framework for reporting on the long-term fiscal sustainability of governmental programs and finances.

"While the IPSASB accepts that there is a level of uncertainty about fiscal sustainability information, we believe that additional information may be necessary for users of financial statements to have a more complete picture about the future viability of government social benefit programs. We have, therefore, decided to initiate an important project on a topic which has assumed increasing global significance in recent years," states Mike Hathorn, Chair of the IPSASB.

Disclosures for Social Benefits
To improve the consistency and transparency of reporting on social benefits by public sector entities, the IPSASB has released exposure draft (ED) 34, Social Benefits: Disclosure of Cash Transfers to Individuals or Households. ED 34 proposes disclosure requirements for amounts to be paid to beneficiaries as part of social programs, as well as information about those programs. ED 34 also includes requirements for determining the amounts to be disclosed. While this is an initial step in developing accounting for social benefits, the IPSASB believes the requirements in ED 34 will provide useful information on social benefit programs for users of public sector financial reports. ED 34 is also intended to bridge the gap between accrual based financial statements and the possibility of long-term fiscal sustainability reporting.

"Accounting for social benefits goes to the heart of government operations, and there is currently no private sector standard addressing it," notes Mr. Hathorn. "ED 34 provides a very small first step on the challenging road to developing a globally accepted approach."

Key Issues in Recognition and Measurement of Social Benefits
The IPSASB is also seeking comments on a consultation paper, entitled Social Benefits: Issues in Recognition and Measurement. The consultation paper sets out the IPSASB's strategy for developing approaches to address the issues involved in accounting for social benefits, including recognition and measurement. These issues include when liabilities for cash transfers and goods and services arise and, if so, whether these liabilities arise at an earlier point for contributory programs than for programs financed primarily through general taxation.

How to Comment
Comments on both ED 34 and the consultation paper are requested by July 15, 2008. Both documents may be viewed by going to https://www.ifac.org/EDs. Comments may be submitted by email to EDComments@ifac.org. They can also be faxed to the attention of the IPSASB Technical Director at +1 (416) 977-8585, or mailed to the IPSASB Technical Director at 277 Wellington Street West, 6th Floor, and Toronto, Ontario M5V 3H2, Canada. All comments will be considered a matter of public record and will ultimately be posted on the IFAC website.

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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), has released its 2007 annual report which highlights its work in enhancing the clarity of international standards and notes progress in achieving global convergence to international auditing standards. The report also details the IAASB's consultation and outreach program and offers a preview of its proposed future strategy.

A central part of the IAASB's work program over the past year has been the redrafting of its international standards to make them clearer and to promote their adoption and translation. During 2007, the IAASB approved seven final International Standards on Auditing (ISAs) and 21 exposure drafts as part of its Clarity project. It also announced that the effective date for all final redrafted ISAs will be for periods beginning on or after December 15, 2009. The IAASB plans to complete the redrafting of all ISAs by the end of 2008.

To further promote international convergence of standards, the IAASB engaged in extensive consultation and coordination activities in 2007 with international regulators and organizations, national auditing standard setters, and other stakeholders. The IAASB also continued to receive oversight from the Public Interest Oversight Board and obtained input to its work program and technical projects from the IAASB Consultative Advisory Group (CAG). A report from David Damant, Chairman of the IAASB CAG, is included in the annual report.

Throughout 2007, the IAASB actively consulted with stakeholders and users of its standards regarding the development of its proposed future technical strategy and work program. The annual report presents highlights of the proposed future strategy, which the IAASB is reviewing at its meeting in New York City this week.

The 2007 IAASB annual report can be downloaded from its website.

About the IAASB and IFAC
The objective of the IAASB is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes its due process and working procedures.

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 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets international ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The International Federation of Accountants (IFAC) has released its 2008 Handbook of International Auditing, Assurance, and Ethics Pronouncements. The handbook can be downloaded in PDF format from the IFAC online bookstore (https://www.ifac.org/store), and print copies can be ordered now for shipment in mid-March. In addition, the 2008 Handbook of International Public Sector Accounting Pronouncements is currently being finalized and will be available for download from the IFAC bookstore later in March.

Auditing and Assurance Handbook
The 2008 auditing and assurance handbook is presented in two parts. The first part contains pronouncements on auditing, review, other assurance, and related services issued by the International Auditing and Assurance Standards Board (IAASB) as of January 1, 2008. It also includes the IFAC Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants, along with new definitions for "firm," "network," and "network firm." The second part of the handbook features nine International Standards on Auditing redrafted by the IAASB to improve their clarity, as well as background information on the IAASB's Clarity project.

Print copies of the handbook can be ordered for US$150.00 plus shipping. Discounts are available for students, academics, and individuals living in developing countries, as well as for orders of 10 or more copies.

Public Sector Accounting Handbook
The 2008 Handbook of International Public Sector Accounting Pronouncements will contain all pronouncements of the International Public Sector Accounting Standards Board (IPSASB) as of December 31, 2007. It will also feature two new standards - International Public Sector Accounting Standard (IPSAS) 25, Employee Benefits, and IPSAS 26, Impairment of Cash-Generating Assets - as well as an updated Cash-Basis IPSAS, Financial Reporting under the Cash Basis of Accounting. Print copies of the public sector handbook can be ordered for no charge, except for a US$25.00 shipping cost, for shipment in late-March.

How to Order
The 2008 Handbook of International Auditing, Assurance, and Ethics Pronouncements can be downloaded or ordered from the IFAC online bookstore. Orders can also be placed by calling 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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.

The International Federation of Accountants (IFAC) is inviting professional accountants and others who work in the public sector to complete an online survey on the ways in which public sector entities set objectives, measure performance, and report on results. Currently, there is little information available about public sector performance measurement structures around the world. This global survey is designed to identify similarities and differences in performance measurement structures and the extent to which these structures help public sector entities meet their objectives. The survey also seeks examples of strengths and weaknesses of performance measurement structures and what can be done to further improve the assessment, monitoring and reporting of financial and non-financial performance in the public sector.

The survey is part of a project to help professional accountants in business and others in evaluating and improving performance measurement systems. The results will also assist IFAC's Professional Accountants in Business (PAIB) Committee in considering specific public sector aspects when developing its principles-based guidance.
 
The survey, which takes 10-15 minutes to complete, can be accessed online at www.ifac.org/publicsectorperformancesurvey. Responses are requested by April 30, 2008.

For more information on the work of IFAC's PAIB Committee, visit: https://www.ifac.org/paib.  

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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.

A new report, Financial Reporting Supply Chain: Current Perspectives and Directions, emphasizes that significant efforts to strengthen financial reporting in recent years have resulted in improvements in three key areas: corporate governance, the process of preparing financial reports, and the audit of financial reports. However, despite improvements to the financial reporting process, the report points out that the understandability of financial reports has not improved.

Commissioned by the International Federation of Accountants (IFAC), the report's findings are based on an independent global survey of participants in the financial reporting supply chain. The survey, conducted in 2007, sought to determine the extent to which the financial reporting process, and financial reports themselves, have improved and where there is need for further action to make them more relevant. More than 340 participants from all sectors of the financial reporting supply chain worldwide - including investors, preparers, company management and directors, auditors, standard setters, and regulators - took part in the survey. In addition, interviews were conducted with 25 high-level participants in the supply chain, including investors, company directors, CFOs, and regulators. The project was led by Norman Lyle, who recently retired as group finance director of Jardine Matheson Limited in Hong Kong.

Among the key findings, the survey found that corporate governance has improved, fueled by an increased focus on corporate governance and changes to company codes and standards.  In commenting on improvements to the financial reporting process, survey participants indicated that convergence to international standards, enhanced regulations governing financial reporting, and improved internal control over financial reporting systems all contributed to enhancing the reliability and relevance of the reports. Improvements to audit standards and practices and strengthened independence rules were seen as having contributed to enhanced audit quality.

"Despite the strengthening of the financial reporting process and the many improvements made, there is still much to be done to meet the needs of investors and other stakeholders," points out Norman Lyle, Chair of the Financial Reporting Supply Chain Project. "Survey respondents raised concern about the reduced usefulness of financial reports due to complexity and the increased focus by companies on compliance instead of reporting on the essence of the business."

Recommendations for Action

To address the usefulness of financial reporting, survey participants recommended:

• Improving communications among participants in the financial reporting supply chain;
• Producing financial and business information that is relevant, reliable and understandable;
• Including more business-driven information in financial reports; and
• Promoting the use of technology to enable users to compile their own information.

"IFAC is already working to address these challenges," emphasizes Ian Ball, IFAC Chief Executive Officer. "At its meeting in New York City last month, the IFAC Board approved a new project that will analyze actions currently being taken to address the suitability of business reporting and identify areas for future development. This project will take the findings of the financial reporting supply chain report to the next stage and deliver specific recommendations for further action."

The full report, Financial Reporting Supply Chain: Current Perspectives and Directions, is available on the IFAC website.

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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.

This independent report, commissioned by IFAC, highlights improvements that have been made to the financial reporting supply chain in recent years and identifies areas for further improving the usefulness of financial reports.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession, is seeking nominations for the position of IFAC Deputy President and for members of its boards and committees for 2009, including three public member positions. IFAC member bodies, and in some instances members of the Forum of Firms and members of the public, may nominate candidates by April 15, 2008. The IFAC Deputy President and all members of IFAC's boards and committees are expected to act in the public interest and must sign a declaration committing to act with integrity and in the public interest in their role within IFAC.

Deputy President
IFAC member bodies may nominate individuals for the position of Deputy President for the period November 2008 to November 2010. Candidates for the position of Deputy President must be a current or nominated member of the IFAC Board. After serving a two-year term, the Deputy President will assume the Presidency of IFAC.

The Deputy President works with the President and Chief Executive Officer in implementing IFAC's Strategic Plan; represents IFAC among its member bodies, various stakeholders, and other external organizations; and chairs IFAC's Planning and Finance Committee. A nominee for the position of Deputy President should be a very senior and highly respected member of the profession with exceptional leadership skills. He or she should also have an awareness of the social and economic environment in which the global profession, IFAC and its member organizations operate.

Member Body Nominations for Board and Committees
Member bodies are also invited to nominate qualified candidates for open positions on the following IFAC boards and committees for terms commencing January 1, 2009:

• IFAC Board;
• International Auditing and Assurance Standards Board;
• International Accounting Education Standards Board;
• International Ethics Standards Board for Accountants;
• International Public Sector Accounting Standards Board;
• Compliance Advisory Panel;
• Developing Nations Committee;
• Professional Accountants in Business Committee;
• Small and Medium Practices Committee; and
• Nominating Committee.

Member bodies may submit more than one nomination for each board or committee, and they are encouraged to nominate candidates with varying backgrounds.

Public Member Nominations
IFAC is also seeking nominations for two public member positions on the International Auditing and Assurance Standards Board and one public member position on the International Public Sector Accounting Standards Board. Public members must be seen to be independent of any special interests and seen to be acting to represent society as a whole. Nominees for the public member positions must have an appropriate level of knowledge about the work of the respective standard-setting board, although they do not need to have a professional accountancy designation. IFAC member bodies, regional accountancy organizations, other organizations, accounting firms, and members of the general public may submit public member nominations, but in all cases the individuals nominated must clearly represent the broad public interest.

Forum of Firms Nominations
A total of five positions on the standard-setting Public Interest Activity Committees¹ are open to nominations from members of the Forum of Firms, an association of international networks of accounting firms that perform audits of financial statements that are or may be used across national borders. Two positions are open on the International Auditing and Assurance Standards Board, one position is open on the International Accounting Education Standards Board, and two positions are open on the International Ethics Standards Board for Accountants.

How to Submit Nominations
The Call for Nominations for IFAC Boards and Committees in 2009 describes the positions available and the qualifications required for each position, as well as the process for submitting nominations. The Call for Nominations may be viewed on IFAC's website at https://www.ifac.org/NominatingCommittee/index.php#Process. All nominations must be submitted by April 15, 2008 using the online Candidate Information System. For more information about the role and activities of each of IFAC's boards and committees, visit its website at https://www.ifac.org/.

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 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.

¹ The standard-setting Public Interest Activity Committees are the International Auditing and Assurance Standards Board, the International Accounting Education Standards Board, and the International Ethics Standards Board for Accountants.