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.

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.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession, today issued Policy Position Paper 8, Enhancing Organizational Reporting, to emphasize the importance and usefulness of reporting broad-based information beyond that which is provided in traditional financial reporting.

Enhanced organizational reporting provides a more complete view of an organization’s position, performance, and longer term potential and sustainability, and is in the public interest. It provides important information for both internal and external stakeholders to support managing and directing operations, decision making, promoting transparency, and the discharge of accountability.

“Given the high volume of responses to the recently-issued Framework from the International Integrating Reporting Council, we feel this is an important and timely topic,” said Fayez Choudhury, IFAC CEO. “We recognize that there are many organizational reporting frameworks and regulations available and being developed, and it is important to examine the relationships between these frameworks and promote global consistency and convergence.”

The accountancy profession has a history of involvement in developing and improving reporting processes and controls, and identifying and reporting key financial and other information. IFAC believes that the accountancy profession has a key role to play in enhancing organizational reporting.

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

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To stimulate a global debate on preparing accountants for finance leadership, IFAC, the global organization for the accountancy profession, today released a new Discussion Paper, The Role and Expectations of a CFO. The paper features five principles that highlight the changing expectations, scope, and mandate of the chief financial officer (CFO) and finance leadership roles and recommends actions professional accountancy organizations and employers can take to prepare professional accountants for career progression to finance leadership.

These principles and recommended actions raise awareness of the implications for the education, training, and development of professional accountants. The Discussion Paper will be used as a basis to engage professional accountancy organizations, employers, and other stakeholders to share and enhance approaches to preparing professional accountants for finance leadership.

The Discussion Paper is also important to the regulatory community, which strives for well-governed and managed organizations. The CFO is a critical part of a chain of actors—including the governing body, chief executive officer, audit committee, and auditor—that share responsibility for ensuring sustainable value creation, as well as relevant organizational reporting. The advantages that professional accountants’ training, expertise, and experience bring to the CFO role are not always recognized, especially professional accountants’ combination of ethical and technical mindsets with business acumen and organizational awareness.

“In these tough economic times, the objectivity and values of the professional accountant can be of enormous value to finance leadership positions in organizations in every economic sector,” said Roger Tabor, chair of IFAC’s Professional Accountants in Business (PAIB) Committee. “But professional accountants in finance leadership roles aren’t universal and, in some parts of the world, their numbers are declining. So it is more important than ever for the profession to develop outstanding professionals who are well equipped to work in business and government, and to take on finance leadership roles.”

“Working closely with employers to understand their needs and requirements helps the accountancy profession to deliver business-ready accountants,” according to Susanna Chiu, chair of the PAIB Committee’s Role, Domain, and Competency Advisory Group, president of the Hong Kong Institute of Certified Public Accountants, and director of Li & Fung Development (China) Ltd. “The education and training of professional accountants should incorporate broader managerial capabilities and skills. Professional accountancy organizations should foster a commitment to lifelong learning and become more innovative in how they engage and serve professional accountants in business.”

A panel of finance leaders from China and the PAIB Committee will debate the key requirements and expectations of finance leadership and highlight what professional accountants need to do to prepare for leadership roles at the Global PAIB Forum, hosted by the Chinese Institute of Certified Public Accountants in Beijing, China, on October 16, 2013. The Forum will facilitate discussion and encourage closer relationships between professional accountants, professional accountancy organizations, employers, and other stakeholders.

An At a Glance publication is also available to provide an overview of the Discussion Paper, key discussion questions, and additional details relating to this initiative.

How to Participate
IFAC will use the Discussion Paper in conjunction with outreach to initiate a global debate among professional accountancy organizations, professional accountants, and other stakeholders. Respondents can also submit their comments electronically through the IFAC website, using the “Submit a Comment” button on the Discussion Paper page.

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

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IFAC Chief Executive Officer Fayez Choudhury and International Public Sector Accounting Standards Board (IPSASB) Deputy Chair Ron Salole recently participated in a World Bank Group-International Monetary Fund (IMF) seminar, “Strengthening Fiscal Transparency and Government Accounting,” held Tuesday, October 8 in Washington, DC.

The seminar was part of the World Bank Group-IMF 2013 Annual Meeting, bringing together central bankers, ministers of finance and development, private sector executives, and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.

Bertrand Badré, Managing Director and World Bank Group Chief Financial Officer, delivered a welcome address to the seminar participants, followed by a keynote speech from Gerd Schwartz, Deputy Director, IMF Fiscal Affairs Department.

Messrs. Choudhury and Salole were panelists for “Improving Government Accounting,” chaired by Charles McDonough, Vice President and Controller of the World Bank. The panel explored the importance of accrual accounting, opportunities and challenges with its implementation, and the role that the International Public Sector Accounting Standards (IPSASs) play for transparency and quality of government accounting.

"Sound government finances directly contribute to the efforts to restore or gain confidence in the public sector,” Mr. Badré said. “It is an important step in building trust in governments as the transparency, reliability, and accountability that result from such practices support value for taxpayer’s money.”

“IFAC’s support of high-quality international standards for the public sector will be instrumental in promoting more comprehensive and reliable fiscal reporting by governments around the world,” said Mr. Schwartz.

“Poor governmental reporting represents a threat to global financial stability and economic growth that must be addressed,” Mr. Choudhury said, citing the 2012 IMF paper Fiscal Transparency, Accountability and Risk, which highlighted the seriousness and extent of current inadequacies in governments’ fiscal reporting and accountability and underscored the risks associated with them.

“IFAC has long recognized that a fundamental way to protect the interests of the public and investors is to develop, promote, and enforce a common set of high-quality international financial reporting standards for the public sector,” he added. “That is why the IPSASB, an independent standard-setting board, was created to develop IPSASs.”

“We see the adoption of IPSASs as important to all economies around the world,” said Mr. Salole. “Additionally, there are some advanced economies that still follow cash accounting and we see this as inadequate in terms of governmental reporting.”

The event also featured regional briefings, press conferences, and other events focused on the global economy, international development, and the world's financial systems. The IMF also used the seminar to launch the new Fiscal Transparency Code, which will serve as a basis for a renewed push for greater fiscal transparency.

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.

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As part of the continuing effort to strengthen the accountancy profession globally, the Professional Accountancy Organization Global Development Report was released today. The report is an initiative of MOSAIC, the Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration.

The report was created to provide an assessment of professional accountancy organization (PAO) development at the global, regional, and national levels. Through its 10 key findings, the report establishes the success factors and challenges associated with building a strong, sustainable accountancy profession supported by an effective PAO.

“As an integral part of national financial infrastructures, PAOs can provide significant contributions to the financial, economic, and social development of nations,” said Deborah Williams, MOSAIC Steering Committee co-chair and chair of the IFAC PAO Development Committee. “Capacity-building efforts benefit the global economy since properly functioning PAOs support the production of high-quality financial information and contribute to public and private sector development, economic growth, and the aid-effectiveness agenda.”

The report’s key findings include the importance of undertaking PAO development comprehensively at the national level; strengthening legal and regulatory foundations; furthering implementation of international standards; and supporting internal strengthening of PAOs. The findings will provide direction for the MOSAIC Steering Committee in its future endeavors.

“This report will provide vital direction on where to focus efforts to increase PAO capacity and improve the quality of public and private sector accounting and financial management, goals that underpin MOSAIC,” said Jennifer Thompson, MOSAIC Steering Committee co-chair and chief financial management officer at the World Bank. “It allows us to further the principles of aid effectiveness—embodied in the Paris Declaration, Accra Agenda for Action, and the Busan Partnership for Effective Development Cooperation—to contribute to economic growth and a reduction in poverty.”

MOSAIC is a historic Memorandum of Understanding that sets out the basis for improving cooperation and collaboration between IFAC, international donors, and the international development community. With 13 signatories, it provides the foundation for an aligned approach to increase the capacity of PAOs and improve the quality of financial management systems in emerging economies. The PAO Global Development Report was co-financed by the African Development Bank, Asian Development Bank, Inter-American Development Bank, and World Bank.

About MOSAIC
MOSAIC (the Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration) sets out the basis for improving cooperation and collaboration between IFAC, international donors, and the international development community. MOSAIC’s objective is to increase the capacity of PAOs in partner countries to improve the quality of public and private sector accountancy and financial management with a view toward enhancing the effectiveness and efficiency of donor assistance, contributing to economic growth, and reducing poverty. IFAC, the global organization for the accountancy profession, serves as the Secretariat for MOSAIC.

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.

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The International Federation of Accountants (IFAC) today announced the availability of the 2013 editions of the handbooks from the International Auditing and Assurance Standards Board (IAASB), International Ethics Standards Board for Accountants (IESBA), and International Public Sector Accounting Standards Board (IPSASB).

2013 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements

The 2013 handbook contains two new standards issued by the IAASB since the 2012 edition: International Standard on Auditing (ISA) 610 (Revised 2013), Using the Work of Internal Auditors and International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to Review Financial Statements.

To download an electronic copy of the handbook for personal use, purchase print copies, or find information on recent developments and outstanding exposure drafts, visit the IAASB’s website at www.iaasb.org.

2013 Handbook of the Code of Ethics for Professional Accountants

In addition to the extant Code of Ethics for Professional Accountants (the Code), the 2013 edition includes three revised pronouncements related to breaches of a requirement of the Code; conflicts of interest; and the definition of “engagement team.” Changes to these pronouncements will take effect in 2014. See individual pronouncements for details.

To download an electronic copy of the handbook for personal use, purchase print copies, or find information on recent developments and outstanding exposure drafts, visit the IESBA’s website at www.ethicsboard.org. 

2013 Handbook of International Public Sector Accounting Pronouncements

The 2013 edition includes Chapters 1-4 of the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities, which were issued in January 2013. The 2013 handbook also includes an updated list of those International Public Sector Accounting Standards (IPSASs) that are applicable to annual financial statements covering periods beginning on or after January 1, 2013, and a list of those IPSASs that are applicable to annual financial statements covering periods beginning on or after January 1, 2014.

To download an electronic copy of the handbook for personal use, purchase print copies, or find information on recent developments and outstanding exposure drafts, visit the IPSASB’s website at www.ipsasb.org.

The standards and pronouncements in each of the handbooks were developed by the IAASB, IESBA, and IPSASB, respectively. The structures and processes that support the operations of these independent standard-setting boards, including publishing the handbooks, are facilitated by IFAC.

The International Accounting Education Standards Board has not issued a 2013 edition of its Handbook of International Education Pronouncements but plans to publish an updated version in 2014.

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.

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The International Ethics Standards Board for Accountants (IESBA, the Ethics Board) today released final changes to the definition of “those charged with governance” in its Code of Ethics for Professional Accountants (the Code).

The changes are intended to more closely align the definition of “those charged with governance” in the Code with that in the International Auditing and Assurance Standards Board (IAASB)’s International Standard on Auditing (ISA) 260, Communication with Those Charged with Governance, thereby eliminating any potential confusion. The Ethics Board does not expect any changes will be necessary to accounting firms’ systems and methodologies or common practice.

The changes clarify that a subgroup of those charged with governance of an entity, such as an audit committee, may assist the governing body in meeting its responsibilities. In those cases, if a professional accountant or firm communicates with such a subgroup, the Code requires the professional accountant or firm to determine whether communication with all of those charged with governance is also necessary so that they are adequately informed.

“The changes to the definition reflect the Ethics Board’s ongoing commitment to eliminate unnecessary differences with the IAASB’s standards, which serves to enhance our shared stakeholders’ understanding of our standards and guidance,” said Jörgen Holmquist, chair of the IESBA. “Furthermore, by clarifying the definition, the Ethics Board aims to promote more consistent application of the Code, which is critical to its mission to ultimately foster a consistent and high level of ethical behavior by professional accountants around the world.”

As with all revisions to the Code, the changes have been approved following confirmation by the Public Interest Oversight Board that due process in developing the changes was followed. The changes, effective on July 1, 2014, will be printed in the 2014 Handbook of the Code of Ethics for Professional Accountants. The 2013 Handbook is currently available to download or purchase.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA are facilitated by IFAC. Please visit www.ethicsboard.org for more information.

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

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Prof. Arnold Schilder has been reappointed as chairman of the International Auditing and Assurance Standards Board (IAASB) for the period 2015–2017.

As chairman, Prof. Schilder will continue to lead the IAASB as it works to set high-quality international auditing, assurance, and related services standards. Since his appointment in 2009, he has played a key role in guiding the IAASB as it strives to enhance the quality and consistency of practice throughout the world. With 90 jurisdictions around the world already using or in the process of adopting or incorporating International Standards on Auditing (ISAs), his leadership will be critical in expanding this broadly based acceptance more widely.

Additionally, he will steer the board into the future as it works to enhance public confidence in financial reporting. Part of this agenda includes the IAASB’s leading edge proposals for significant changes to the content of the auditor’s report and considering the results of the implementation reviews of the ISAs. Also, the IAASB will closely monitor new developments, such as integrated reporting, and their implications for assurance and related services standards.

"It has been my great pleasure to chair the IAASB, and I am honored to have been reappointed to continue to lead the board,” said Prof. Schilder. “We are now preparing a global consultation for the IAASB’s Strategy and Work Program for 2015-2019. I look forward to the dialogue with many key stakeholders. As a result, I expect a challenging program in my third term to serve the public interest with high-quality standards, ongoing implementation support, and cooperation with regulators, other standard setters, and more.”

Prof. Schilder's appointment to a third three-year term as IAASB chairman begins on January 1, 2015. The Public Interest Oversight Board (PIOB) approved the appointment at its last meeting in Madrid, Spain.

From 1998 to 2008, Prof. Schilder was a member of the Managing Board of the Dutch Central Bank, responsible in particular for banking regulation and supervision. He served as the chairman of the Basel Committee on Banking Supervision's Accounting Task Force from 1999–2006, and from 2005–2008 as a member of the PIOB. During 1994 and 1995 he served also as president of Royal NIVRA (now Nederlandse Beroepsorganisatie van Accountants).

From 1972 to 1998 he worked with PricewaterhouseCoopers, first in the small- and medium-sized entities practice and since 1985 as an international audit partner. Prof. Schilder served as part-time professor of auditing at the Universities of Amsterdam and Maastricht from 1988 to 2009.

For more information about the work of the IAASB, visit its homepage at www.iaasb.org.

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 the International Federation of Accountants (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. 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.

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The International Ethics Standards Board for Accountants (IESBA, the Ethics Board) today released its 2012 Annual Report, Connecting and Engaging with Our Global Stakeholders.

The report introduces Jörgen Holmquist, the first independent chair of the Ethics Board, and details the board’s ongoing commitment to developing high-quality ethics standards for the global accountancy profession. It emphasizes the board’s further commitment to promoting and facilitating the adoption and effective implementation of these standards around the world, thus supporting professional accountants in their commitment to act in the public interest within their diverse roles in business and practice.

The report summarizes the progress made on the IESBA's Work Plan, which in 2012 included finalizing three pronouncements—breach of a requirement of the Code of Ethics for Professional Accountants (the Code), conflicts of interest, and a revised definition of the term “engagement team.” The report also highlights the board’s efforts in exploring appropriate ethics standards for professional accountants in one of the most challenging projects the board has undertaken so far—responding to a suspected illegal act.

“The Annual Report is one of the ways through which the board demonstrates the transparency of its activities. This year’s report focuses on our activities in further building on the strong base of ethics standards contained in the revised Code released in 2009. Additionally, it elaborates on the renewed focus we’ve placed on stakeholder outreach,” said Mr. Holmquist. “As the first independent chair of the board, I see it as an important priority to increase the trust of stakeholders, particularly the regulatory community, in the board’s work, and extending and deepening the board’s engagement with them.”

The Annual Report also includes a report from Richard Fleck, outgoing chair of the IESBA Consultative Advisory Group (CAG), which outlines the work of the CAG in providing input to the IESBA.

To access and download the 2012 IESBA Annual Report, visit www.ethicsboard.org.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA are facilitated by IFAC. Please visit www.ethicsboard.org for more information.

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

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