The International Federation of Accountants (IFAC) is seeking proposals for the development of an explanatory guide on implementing International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements, for use by small and medium-sized practices (SMPs).The International Federation of Accountants (IFAC) is seeking proposals for the development of an explanatory guide on implementing International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements, for use by small and medium-sized practices (SMPs).

The purpose of this guide is to help SMPs around the world understand, comply with, and apply ISQC 1. The purpose of ISQC 1, which became effective on June 15, 2005, is to establish standards and provide guidance regarding a firm's responsibilities for its system of quality control for audits and reviews of historical financial information, and other assurance and related services engagements.

"Assisting SMPs in understanding how to apply ISQC 1 is consistent with IFAC's objective of helping these entities to implement international standards and so perform high quality work," states IFAC Chief Executive Ian Ball. "We envisage the guide being of particular benefit to auditors in those countries where the profession is at an early stage of development, but we believe it will also be of value in developed countries."

The specifications for the Request for Proposal: Development of a Guide to Quality Control for Use by Small and Medium Practices are available on IFAC's SMP Committee's web page. The deadline for submission is 12:00pm (EST), December 29, 2006.

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. Its current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets standards on auditing and assurance, ethics, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.

The World Federation of Exchanges (WFE) formally endorsed the processes for establishing International Standards on Auditing (ISAs) at its General Assembly meeting in Sao Paolo, Brazil last week, viewing ISAs as key to the development of a globally uniform financial reporting system. ISAs are developed by the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board of the International Federation of Accountants (IFAC).

"WFE's endorsement of IFAC's structure of public oversight and the processes its public bodies have established for creating high quality global standards for audit work and assurance reviews is a critical advance for establishing the world's capital markets with constantly improving financial information," emphasizes WFE Secretary General Thomas Krantz. The WFE represents 57 securities and derivative markets that account for more than 97 percent of world stock market capitalization. Its endorsement provides important impetus for convergence to international standards, which is among IFAC's and the IAASB's most critical goals.

"We welcome this important endorsement of the ISA standard-setting process by the World Federation of Exchanges. It is a significant recognition of the quality of the ISAs and the important role they play in ensuring greater comparability of financial information for investors and facilitating cross border trade - both of which are critical to generating economic growth," states IFAC President Graham Ward.

The ISAs represent an integrated body of standards that provide direction on the actions and procedures the auditors need to perform and the judgments that need to be made to achieve the objective of an audit. ISAs are intended for use in all audits - publicly traded companies, private business of all sizes and government entities at all levels. They are increasingly being adopted worldwide; over 100 countries have adopted or incorporated ISAs into their national auditing standards or are using ISAs as a basis for preparing national auditing standards.

The IAASB, which meets in public, develops its standards following a rigorous and transparent due process. All proposed ISAs are exposed for public comment, and detailed project information is posted on its website (https://www.iaasb.org). The IAASB receives public interest input through public members that serve on the IAASB and from its Consultative Advisory Group* which is comprised of organizations, including the WFE, with an interest in the development of high quality international auditing standards. In addition, the Public Interest Oversight Board,** whose members are nominated by international regulators and organizations, provides public interest oversight of IAASB activities. All IAASB standards and guidance can be downloaded free-of-charge from the IFAC online bookstore: https://www.ifac.org/store.

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 the criteria for its due process and working procedures. 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. Its current membership consists of approximately 160 professional accountancy bodies in 120 countries, 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.

For the majority of public sector entities, the costs of employee benefits have a major impact on financial performance and financial position. To assist governments and other public sector entities in appropriately accounting for these benefits, the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) has issued an exposure draft (ED) of a proposed new International Public Sector Accounting Standard (IPSAS), ED 31, Employee Benefits.

"The proposed standard will contribute to more transparent and consistent accounting for employee benefits, which is essential to ensure responsible financial reporting by governments and other entities," emphasizes IPSASB Chair Philippe Adhémar. "The significance ofemployee benefits for the vast majority of public sector entities cannot be overestimated. The ED's requirements that entities account for obligations under public sector defined benefit plans and, when appropriate, recognize liabilities related to those obligations are particularly notable and may lead to important changes in existing practice for many public sector entities globally."

ED 31 is based on International Accounting Standard (IAS) 19, Employee Benefits, and addresses the four categories of employee benefits dealt with in IAS 19:

• Short-term employee benefits;
• Post-employment benefits;
• Other long-term employee benefits; and
• Termination benefits.

The proposed standard also deals with a number of issues of specific relevance to the public sector, including:

• Determining the risk-free discount rate to be applied for discounting obligations arising from post-employment benefits;
• The treatment of post-employment benefits provided through composite social security programs; and
• Mechanisms for the orderly implementation of the proposed standard in the public sector.

This ED was developed in accordance with one of the IPSASB's key strategic aims: promoting convergence with International Financial Reporting Standards (IFRSs) where the requirements of IFRSs are applicable to the public sector. It is also critical to the IPSASB's work to improve the quality of financial information reported by public sector entities around the world.

How to Comment

The IPSASB has identified a number of issues of particular significance to the public sector and is particularly keen to obtain constituents' views on how the ED deals with these issues. Comment on these and other issues raised in the ED are requested by February 28, 2007. It may be viewed by going to https://www.ifac.org/EDs. Comments may be submitted by email to publicsectorpubs@ifac.org. They can also be faxed to the attention of the IPSASB Technical Director at +1 (212) 286-9570 or mailed to IFAC, 545 Fifth Avenue, 14th Floor, New York, NY 10017, USA. All comments will be considered a matter of public record and will ultimately be posted on IFAC's website.

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 approximately 160 professional accountancy bodies in 120 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 Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) is working to improve both the quality and uniformity of financial information reported by public sector entities around the world. In pursuit of this objective, the IPSASB has issued an exposure draft (ED) of a proposed International Public Sector Accounting Standard (IPSAS), ED 30, Impairment of Cash-Generating Assets. The majority of public sector entities globally operate for the purposes of delivering services to citizens.The IPSASB has already addressed assets which are held and operated primarily for the purposes of service delivery when it issued IPSAS 21, Impairment of Non-Cash-Generating Assets, in December 2004. ED 30 deals with cash-generating assets held and operated by public sector entities, which are not Government Business Enterprises.

"IPSAS 21 deals with the impairment of non-cash-generating assets and directed readers to International Accounting Standard 36 for guidance on the impairment of cash-generating assets. However, our constituents indicated that it would be useful if IPSASs included further guidance dealing with the impairment of cash-generating assets. The issuance of this proposed standard responds to that view," says IPSASB Chair Philippe Adhémar.

How to Comment

Comments on the ED are requested by February 28, 2007. It may be viewed by going to https://www.ifac.org/EDs. Comments may be submitted by email to publicsectorpubs@ifac.org. They can also be faxed to the attention of the IPSASB Technical Director at +1 (212) 286-9570 or mailed to IFAC, 545 Fifth Avenue, 14th Floor, New York, NY 10017, USA. All comments will be considered a matter of public record and will ultimately be posted on IFAC's website.

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 approximately 160 professional accountancy bodies in 120 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.

Continuing to combat poverty and develop stable economies remain two fundamental and interrelated challenges facing African nations according to participants representing 37 African countries at the Africa Region Learning Workshop held in Nairobi, Kenya on September 28 and 29. Sponsored by the African Development Bank and co-sponsored by the World Bank and the International Federation of Accountants (IFAC), the Workshop attracted over 200 participants, including representatives of the accountancy profession, governments, donor community, and academia. Discussions focused on achieving quality financial reporting, the needs of the accountancy profession in the region, the role of the government in accountancy and accountancy development, and the importance of sustaining good governance and ethics.

Participants contributed pan-African recommendations to:

• Reform and strengthen institutional frameworks for corporate reporting;
• Build accountancy capacity in the private and public sectors, including the development of established educational guidelines for accounting technicians;
• Establish contact and begin development of the accountancy profession in those African countries where the profession is not yet established;
• Assist regional and national professional bodies to access donor funds; and
• Support the "Nairobi Declaration", signed by over 30 professional bodies, which calls for the creation of a Pan-African Federation of Accountants.

"This Workshop represents the first major collaborative effort between IFAC and development agencies to address the development of the accounting profession on the African continent. It is essential that the organizations represented at the Workshop work together to address the recommendations that have been put forth," says Ndung'u Gathinji, Chairman of the IFAC Developing Nations Committee.

One of the major outcomes of the Workshop was the establishment of an Africa Focus Group which will coordinate dissemination and follow-up activities for the recommendations identified at the Workshop. The Africa Focus Group will have representatives from the African Development Bank, the World Bank, IFAC, the Eastern Central and Southern African Federation of Accountants, the Association of Accountancy Bodies of West Africa, and the Fédération Internationale des Experts-Comptables Francophones.

Russell Guthrie, IFAC Director, Quality Assurance and Member Body Relations, commented, "This Workshop is a vital part of IFAC's efforts to support economic development in Africa and to strengthen professional accountancy bodies. IFAC's Developing Nations Committee will be focusing a significant portion of its efforts on mentoring and guiding the establishment and strengthening of professional accountancy bodies in the 33 African countries where IFAC is not currently represented."

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 approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, 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) has collaborated with its member organizations to develop IFACnet - A KnowledgeNet for Accountants in Business. This new global resource will provide one-stop access to leading-edge articles, good practice guidance, and tools and techniques for accountants employed in commerce, industry, the public sector, education, and the not-for-profit sector.

"Many of our member bodies develop high quality guidance and other materials that can assist professional accountants in business in keeping up with the changing environment in which they operate, maintaining their skills, and making informed decisions," states IFAC Chief Executive Ian Ball. "This new resource, developed under the leadership of our Professional Accountants in Business (PAIB) Committee, facilitates the sharing of that information among IFAC's 160 member organizations and professional accountants worldwide."

"Users of IFACnet will find relevant information on a wide range of financial and management accounting topics, including strategy, budgeting and planning, corporate governance, risk management, and professional development emphasis," points out Bill Connell, Chair of the IFAC PAIB Committee.

Thirteen accountancy organizations (see below) together with IFAC currently participate in the KnowledgeNet by sharing their electronic resources through IFACnet; others will be coming on board in the coming months. In addition, during the first quarter of 2007, the KnowledgeNet will be expanded to serve the needs of small and medium practices and, by the end of 2007, will offer customized information for broader audiences of accountants.

IFACnet uses advanced technology specifically tailored to the accountancy profession. It carefully indexes, filters and sifts all the best and most relevant items of information available for accountants in business worldwide so they can be delivered on demand to IFACnet.com users. The technology supporting IFACnet has been developed by Indez, a software company based in Glasgow, Scotland. It features an enterprise search engine that is based on patented search technology. There is no fee to use IFACnet, although certain search results may identify documents or publications available for purchase.

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 approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. Through its Professional Accountants in Business Committee, IFAC also issues guidance to encourage high-quality performance by professional accountants in business.

Notes:
* Media are invited to use this new resource and comments are welcomed. ** Quotes from Chief Executives and other representatives of accountancy organizations worldwide are attached.

IFAC Member Bodies Providing Resources for IFACnet
American Institute of Certified Public Accountants
Association of Chartered Certified Accountants
Chartered Institute of Management Accountants
CMA Canada
CPA Australia
Hong Kong Institute of Certified Public Accountants
Institute of Certified Public Accountants in Ireland
Institute of Chartered Accountants in England & Wales
Institute of Chartered Accountants in Ireland
Institute of Chartered Accountants of India
Institute of Management Accountants
Koninklijk Nederlands Instituut van Registeraccountants (Royal NIVRA)
Malaysian Institute of Accountants

At its meeting last week in Toronto, Canada, the Board of the International Federation of Accountants (IFAC) approved increasing the involvement of developing nations in its activities by expanding the IFAC Developing Nations Committee and by providing financial support to qualified individuals from developing nations who would like to participate on IFAC boards and committees. It also gave further recognition to the role of its Professional Accountants in Business (PAIB) Committee in developing global guidance by clarifying its mission.

The Board also approved the following appointments, which are effective January 1, 2007:

• Edward Chow of Hong Kong as the Chair of the IFAC Professional Accountants in Business Committee;
• Mike Hathorn of the United Kingdom as Chair of the IFAC International Public Sector Accounting Standards Board; and
• Ignatius Sehoole of South Africa as Chair of the Developing Nations Committee.

In addition to taking these actions, the Board focused a part of its discussion on convergence to international standards. Guest speakers Paul Cherry, Chair, Accounting Standards Board, Canada, and Ron Salole, Vice President of Standards for the Canadian Institute of Chartered Accountants, addressed the challenges and successes they have faced in moving from national standards to international standards and the benefits that have been realized as a result of this transition. In addition, Sheila Fraser, Auditor General of Canada, discussed the ways in which the Canadian Government accounts to its electorate, the significance of international public sector financial reporting standards, and the need for the use of an international set of standards recognized by governments and legislative bodies.

"Canada's recognition of the importance of international standards was further exemplified by the Canadian government's recent donation of US $1 million to the International Public Sector Accounting Standards Board and the Canadian Institute of Chartered Accountants' (CICA) willingness to second staff to that Board," states IFAC President Graham Ward. "We are very grateful for this and other support provided by IFAC's member organizations."

About IFAC

The International Federation of Accountants (IFAC) is dedicated to serving the public interest, strengthening the worldwide accountancy profession, and contributing to the development of strong international economies. Its current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. The organization sets international standards of ethics, auditing and assurance, education and public sector accounting and develops guidance for professional accountants in business.

Canada is showing its support for the work of the International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting body of the International Federation of Accountants (IFAC), in two significant ways: The Treasury Board of Canada is providing funding of US$200,000 per year for five years and the Canadian Institute of Chartered Accountants (CICA) has agreed to provide, at its expense, a dedicated professional to support the IPSASB. Beginning this month, some of the IPSASB's staff, including its new Technical Director, Stephenie Fox, will be located in an office in Toronto, Canada.

The IPSASB focuses on the accounting and financial reporting needs of national, regional and local governments, related governmental agencies, and the constituencies they serve through the development of high quality International Public Sector Accounting Standards. Canada's actions demonstrate the increasing recognition of the importance of these standards.

"These standards are the foundation for better, more transparent and more responsible financial reporting by government," states IFAC Chief Executive Ian Ball. "Citizens in all countries have a right to understand how the government manages the financial resources that have been entrusted to it. By addressing such issues as the application of accrual accounting to the public sector, or accounting for social policy obligations or for tax revenues, these standards help to enhance the accountability of governments."

"We very much appreciate the commitment of the Canadian Government and the CICA to the IPSASB. Together with our Canadian partners and others throughout the world, the IPSASB can continue to improve financial reporting in the public sector and thus contribute to better financial decision making and financial management by governments," states IFAC President Graham Ward, CBE, MA, FCA.

"The Canadian offer is significant in that it will strengthen the IPSASB's capacity to deal with its priorities on public sector specific issues, including public/private arrangements and a conceptual framework, as well as convergence with other standards," states Philippe Adhémar, IPSASB Chair. "An important IPSASB goal is to promote the acceptance and use of its standards worldwide, and significant progress has been made in this area. For example, the United Nations recently approved a resolution calling for its agencies to adopt the standards. The European Commission and Organisation for Economic Co-operation and Development have also adopted the standards, and the World Bank has indicated its support for their use by governmental entities."

"We are very pleased to have IPSASB based in Toronto. It is a huge vote of confidence in Canada's standard-setting abilities," says Kevin J. Dancey, FCA, CICA President and CEO. "It is through initiatives like this that the CA profession demonstrates its leadership and the increasingly important role it plays on the international stage in terms of establishing best practices and guidance for improved financial reporting."

For more information about the IPSASB and to download its standards and other guidance free-of-charge, visit its home page on the IFAC website at https://www.ifac.org/publicsector.

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. Its current membership consists of approximately 160 professional accountancy bodies in 120 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 international standards of ethics, auditing and assurance, and education. It also issues guidance to encourage high-quality performance by professional accountants in business.

The General Assembly of the United Nations (UN) has approved a financial management reform program that calls for the adoption of International Public Sector Accounting Standards (IPSASs) by the UN. The adoption of IPSASs is viewed as critical to maintaining and enhancing the credibility, transparency, and authority of the financial processes and transactions of the United Nations.

"The reform program enables, for the first time, the UN and its many agencies to have a comprehensive and consistent view of their financial position and performance. This will, in turn, enable the UN to manage more effectively, and to be fully accountable for, the resources entrusted to it," states IFAC President Graham Ward.

IPSASs are developed by the International Public Sector Accounting Standards Board, an independent standard-setting body within the International Federation of Accountants (IFAC). The standards set out the requirements for financial reporting by governments and other public sector organizations. The standards may be downloaded from the IFAC website at https://www.ifac.org/store.

As a result of the UN's decision to use IPSASs, the UN will move from a system of modified accrual to full accrual, which provides a more comprehensive financial picture.

Chief Executive Ian Ball states: "Public sector entities, such as the United Nations, that have undertaken a financial management reform program incorporating full accrual financial reporting are better able to manage their finances, and demonstrate by their actions their commitment to transparency."

The President of the United Nations General Assembly, H.E. Mr. Jan Eliasson, issued a Statement on the Adoption of the Resolution on Management Reform in which he said: "...We have taken a step to make the Organization more efficient and effective. We have begun consolidating a culture of accountability, transparency and integrity in the Secretariat (of the UN)."

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 approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting public sector accounting standards through the IPSASB, IFAC, through its independent standard-setting boards, also sets international standards on ethics, auditing and assurance, and education. It also issues guidance to encourage high-quality performance by professional accountants in business.

Stephenie Fox, CA, has been named Technical Director for the International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board of the International Federation of Accountants (IFAC). Ms. Fox, who will be based in Toronto, Canada, will assume the position on September 1.

Ms. Fox has extensive experience in public sector accounting standard setting and in working with all levels of government, in addition to having worked with public accounting firms. She most recently served as a Senior Reviewer for the Canadian Public Accountability Board. Prior to this, she worked for over twelve years as a Principal of the Public Sector Accounting Standards Board of the Canadian Institute of Chartered Accountants. While in this position, she participated on the steering committee for the IPSASB's project on non-exchange revenue.

"Stephenie's technical expertise and strong communications and leadership skills will be of great assistance to the IPSASB as it continues its work of developing financial reporting standards for governments worldwide," states Ian Ball, IFAC Chief Executive. "In this way, she will play a key role in improving the quality of financial reporting and financial management of public sector entities."

Stephenie Fox takes over from Paul Sutcliffe who is retiring as full-time Technical Director. Mr. Sutcliffe will continue to work for the IPSASB on specific projects as a Senior Advisor on a part-time basis. The IPSASB focuses on the accounting and financial reporting needs of national, regional, and local governments, related governmental agencies, and the constituencies they serve. A primary goal of the IPSASB is to achieve convergence in financial reporting between different governments, with the private sector, and between financial reporting and economic statistics.

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 approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, 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.