As the global accountancy profession began adapting to the COVID-19 pandemic and its consequences, IFAC (the International Federation of Accountants) convened a series of roundtable discussions to understand the implications of the pandemic for professional accountants and leaders, and how their experiences will affect the future of accountancy and accountancy skills.

Today, IFAC published a summary of these findings, Accountancy Skills Evolution: Impact of COVID-19 & the Path Forward. This whitepaper outlines the key themes our stakeholders shared, including accelerated ways of working, impact of technology, practices that align to new societal demands, and the right balance of skills, which collectively illustrate a roadmap for the professional accountant.

The roundtable discussions and emerging themes also influenced the structure and content of the upcoming virtual global summit, The Anticipatory Accountant: Global Trends Transforming Learning & Development. The summit, which features world-renowned futurist Daniel Burrus and special guest Tom Hood, continues these conversations and focuses on three broad themes: technology, the environment, and society.

Together with ICAEW, The International Federation of Accountants (IFAC) today released the second installment in its Anti-Money Laundering: The Basics educational series: Installment 2: A Risk-Based Approach.  

The publication is part of a 6-month short series helping professional accountants enhance their understanding of how money laundering works, the risks they face, and what they can do to mitigate these risks and make a positive contribution to the public interest.

The first installment in the series provided a general overview of AML, including a definition of money laundering and an analysis of key concepts professional accountants must understand.  

The installment series, with its focus on accessibility and ease of use, will be a resource for Small and Medium Practices (SMPs,) and accountants less familiar with AML, while also providing guidance for those looking for a quick refresher or reference.

Anti-Money Laundering: The Basics will be featured on both the IFAC and ICAEW websites and available for download for free. To be globally relevant, the series uses the risk-based approach of the Financial Action Task Force (FATF) – the global money laundering and terrorist financing watchdog -- as a starting point. 

For more information about IFAC, visit www.ifac.org.

For more information about ICAEW, visit https://www.icaew.com/.

The International Public Sector Accounting Standards Board (IPSASB) has today released for comment Exposure Draft (ED) 74, IPSAS 5, Borrowing Costs – Non-Authoritative Guidance. The ED proposes the addition of non-authoritative guidance to IPSAS 5.

The proposed non-authoritative guidance would add implementation guidance and illustrative examples to IPSAS 5. The new material proposed in ED 74 would clarify how the existing principles for when borrowing costs can be capitalized should be applied in various regularly encountered public sector contexts. No amendments are proposed to the authoritative material in IPSAS 5.

“We undertook this project to address the practical challenges constituents identified in determining which borrowing costs can be capitalized and when,” said IPSASB Chair Ian Carruthers. “This is an important step in enhancing comparability between those public sector entities that capitalize borrowing costs.”

How to Comment
To access the Exposure Draft and its summary At-a-Glance document, or to submit a comment, visit the IPSASB website, www.ipsasb.org. Comments on the Consultation Paper are requested by March 1, 2021. The IPSASB encourages IFAC members, associates, and regional accountancy organizations to promote the availability of this Consultation Paper to their members and employees.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

Earlier today, the IESBA’s Technology Task Force launched two online surveys with questions seeking stakeholder feedback to inform its consideration of issues related to two key recommendations in the February 2020 Phase 1 report of its Technology work stream, Technology Working Group Phase 1 Final Report. The topics addressed by these two recommendations are:

• Technology and complexity in the professional environment; and
• The impact of technology on auditor independence.

Stakeholder responses to the surveys will help guide the IESBA’s consideration of next steps in relation to those two topics at its December 2020 Board meeting.

The IESBA is seeking views and input from all categories of stakeholders, including investors and other users of financial statements, the corporate governance community, the regulatory and audit oversight community, preparers, firms, national standard setters, professional accountancy organizations, academics and others. Don’t miss this unique opportunity to contribute to international standard setting.

How to Participate in the Survey

Click on the links below to respond to each survey by November 10, 2020.

1. Technology and complexity in the professional environment; and
2. Impact of Technology on Auditor Independence.

If you are experiencing difficulty in submitting your completed questionnaire online, please contact KamLeung@ethicsboard.org.

Alternatively, you may also complete the PDF versions of the survey by November 10, 2020 and e-mail them to KamLeung@ethicsboard.org. Click below to access these versions.

• PDF versions of technology surveys

About the IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards).

The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board.

The International Ethics Standards Board for Accountants (IESBA) is pleased to announce new appointments and re-appointments to take effect on January 1, 2021.

The four new Board Members are:

• Ms. Saadiya Adam (Senior Professional Manager: Standards, Independent Regulatory Board for Auditors (IRBA), South Africa)
• Prof. Vania Borgerth (Retired accountant and a PhD Candidate in Accountancy, Fucape Business School, Brazil)
• Mr. Sung-Nam Kim (Non-partner advisor, EY Korea, Korea)
• Mrs. Yaoshu Wu (Director of Professional Standards and Technical Guidance Dept., the Chinese Institute of Certified Public Accountants (CICPA), China)

The following three current Board Members will continue their service for a second term:

• Mr. Brian Friedrich (Principal, friedrich & friedrich corp., Canada)
• Prof. Winifred Kiryabwire (Associate Professor of Law, Makerere University, Uganda)
• Prof. Jens Poll (Audit Committee Chair, Non-Executive/Supervisory Board Member, Germany)

"I welcome such an accomplished group of volunteers to the IESBA,” said Stavros Thomadakis, IESBA Chairman. “As an international standard setter, it is critical we incorporate voices from different cultures and professional backgrounds. Our new Board makeup expands our reach in both areas, and advances our commitment towards gender parity.”

The IESBA also welcomes the appointment of Caroline Lee from Singapore as Deputy Chair for 2021. Ms. Lee has over 30 years of experience in the public accountancy profession and is a partner at KPMG and Asia Pacific Head of Quality & Risk Management. She is also a member of the Singapore Public Accountants Oversight Committee’s Ethics Committee. She has been a Board member of IESBA since January 2017 and of its Planning Committee since January 2019, and has played an instrumental role on its projects to revise the fee-related provisions and Part 4B of the International Code of Ethics for Professional Accountants (including International Independence Standards).

“Ms. Lee has shown an unwavering commitment to the IESBA and to the development of international standards in the public interest,” said Dr. Thomadakis. “I value her insights, expertise and strategic thinking.  I look forward to working together with Caroline in her new role. I also want to thank our departing Deputy Chair Richard Fleck, who has been my close associate and friend and who has contributed decisively and generously to IESBA’s most ambitious projects such as NOCLAR, Long Association, Role and Mindset, and Non-Assurance services.”

About the Nominating Committee

The Nominating Committee makes recommendations to the International Federation of Accountants® (IFAC®) Board and Public Interest Oversight Board (PIOB) on the composition of the IAASB and IESBA.

The Nominating Committee is guided in its work by the principle of selecting the most suitable person for the position. In doing so, it endeavors to balance the nominee’s abilities and professional qualifications with the representational needs of the board, such as broad regional and professional representation and gender balance. The PIOB representative observes the selection process for IAASB and IESBA memberships with regular updates to the PIOB. To learn more about the Nominating Committee, visit their website here.

About the IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards).

The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).

The International Public Sector Accounting Standards Board has welcomed the B20 Policy Recommendations to the G20, published earlier this week. The report includes 22 policy recommendations to the G20 identified by the global business community to support healthy economies and build back better from the COVID-19 pandemic.

“The global economy is in its worst state in a century,” wrote Yousef Al-Benyan, chairman of the B20. “The challenging opportunity is to build back better, with real urgency required from policymakers and business leaders…Building back better requires deepening public, private and citizen cooperation.”

Among the priorities identified by the B20 is combatting corruption through enhancing integrity in the public sector. The report states that, “the G20 should lead the way in the global application of accrual accounting in the public sector, and in particular International Public Sector Accounting Standards.”

“We’re delighted to see our standards named among the top B20 priorities,” said IPSASB Chair Ian Carruthers. "The COVID-19 pandemic is proving to be one of the greatest challenges that many governments have ever faced, and because of its magnitude its impact will be felt for many years to come. Without high-quality accounting information, politicians will struggle to make the tough decisions that will be required to support both citizens’ wellbeing and economic recovery sustainably over the decades to come,” he added.

To help governments apply best practices in public sector accounting when analyzing COVID-19-related intervention programs, wherever they are on the path to full accrual implementation, IFAC and the Zurich University of Applied Science (ZHAW), in partnership with IPSASB, published an Intervention Assessment Tool earlier this year.

The role of accountancy in managing the public sector impacts of the pandemic has also been an area of focus for the global profession. “At a time of enormous public sector spending, accountability in the public sector has become even more central to the social contract between governments and citizens,” wrote Sheila Fraser, IFAC Board Member and former Auditor General of Canada and Alta Prinsloo, IFAC Executive Director, in an article highlighting the importance of public sector resiliency as part of the G20 agenda.

“Building a strong public sector requires the contribution of a wide range of stakeholders. The accountancy profession remains ready to play its part,” they wrote.

The B20, representing the international business community, advocates for bold and broad-based policy action that will put recovery on a stronger, more stable growth path and benefit all. Its policy recommendations will be presented to the G20 for further consideration during the B20 Summit later this month.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

Earlier today, the Staff of the American Institute of Certified Public Accountants (AICPA), the International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) jointly released the publication, Using Specialists in the COVID-19 Environment: Including Considerations for Involving Specialists in Audits of Financial Statements.

The publication provides guidance to assist professional accountants in business and in public practice determine when there might be a need to use the services of a specialist to assist in performing specific tasks and other professional activities within their employing organizations, and in serving their clients in the COVID-19 environment. The publication also highlights relevant ethical considerations for accountants when thinking about using a specialist, as well as circumstances that indicate a need for a specialist during an audit of financial statements.

The publication was developed by the Staff of the AICPA under the auspices of a Working Group formed by the IESBA and national ethics standard setters (NSS) from Australia, Canada, China, South Africa, the UK and the US. Chaired by Mr. Richard Fleck, IESBA Deputy Chair, the Working Group’s mandate is to develop implementation support resources to assist accountants effectively apply the International Code of Ethics for Professional Accountants (including International Independence Standards) when facing circumstances created by the COVID-19 pandemic. The publication benefited from input from IESBA and IAASB Staff.

The publication can be found on the IESBA’s and IAASB’s COVID-19 resource pages. The Working Group has committed to developing additional COVID-19 guidance in the coming weeks.

About the IESBA-NSS Working Group

The Working Group organizations comprise: APESB (Australia); Chartered Professional Accountants of Canada; the Chinese Institute of Certified Public Accountants; the Independent Regulatory Board for Auditors (South Africa); the UK Financial Reporting Council; and the American Institute of Certified Public Accountants (US).

About AICPA

The American Institute of Certified Public Accountants (AICPA) is the world’s largest member association representing the accounting profession. The AICPA’s history of serving the public interest stretches back to 1887. Today, you’ll find 431,000+ members in 130 countries and territories, representing many areas of practice, including business and industry, public practice, government, education and consulting.

About IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).

About IAASB

The International Auditing and Assurance Standards Board (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 International Ethics Standards Board for Accountants (IESBA) today released revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to better promote the role and mindset expected of all professional accountants.

The revisions explicitly recognize that the accountancy profession is entrusted with public confidence in the wide-ranging roles it plays in society and that such confidence is based on the skills and values it brings to its professional activities. Importantly, they reaffirm the profession’s responsibility to act in the public interest and the fundamental role of the Code in meeting that responsibility.

Among other matters, the revisions:

• Reinforce aspects of the principles of integrity, objectivity and professional behavior;
• Raise behavioral expectations of all professional accountants through requiring them to have an inquiring mind as they undertake their professional activities;
• Emphasize the importance of accountants being aware of the potential influence of bias in their judgments and decisions; and
• Highlight the supportive role the right organizational culture can play in promoting ethical conduct and business.

“The ethical principles and behavioral expectations embodied in the Code are the bedrock of the accountancy profession,” said Dr. Stavros Thomadakis, IESBA Chairman. “The profession is a major player in the global financial ecosystem and an indispensable facilitator of economic growth. The enhancements we have made to the Code speak to the importance of protecting and strengthening public trust in it across its varied roles and activities.”

Throughout this project, the IESBA has benefited from coordination with the International Auditing and Assurance Standards Board (IAASB) and the former International Accounting Education Standards Board (IAESB) on issues common to their standards, and especially in developing the provisions addressing the mindset expected of professional accountants.

The “role and mindset” revisions will become effective on December 31, 2021.

About the IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards).

The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).

IFAC, the global voice of the accounting profession, applauds the IFRS Foundation Trustees in issuing their Consultation Paper on Sustainability Reporting. This marks a critical step on the path towards a global solution to sustainability reporting, called for earlier this month by IFAC in its Enhancing Corporate Reporting: The Way Forward roadmap.

IFAC believes that the demand is urgent and real—from investors, policymakers and other stakeholders—for a sustainability reporting system that delivers consistent, comparable, reliable, and assurable information. The IFRS Foundation is optimally positioned to establish a new sustainability standards board that leverages the expertise and disclosure requirements of existing leading initiatives.  Under the IFRS umbrella, the work of this new board can connect with the investor focus of the IASB, while also collaborating with respect to reporting requirements designed to address broader stakeholder interests.

IFAC CEO, Kevin Dancey, said, “The IFRS Foundation—with its backing by public authorities, independence, and  globally-respected governance and due process—is the appropriate home for a new sustainability standards board. Today’s open letter to IOSCO from the five leading global ESG reporting organizations lends further support to the legitimacy of a new sustainability board and I strongly encourage their continued collaborative effort. Now is the time for Professional Accounting Organizations around the world to lend their expertise and support as the IFRS Foundation Trustees consider this important challenge. IFAC looks forward to engaging with our members and other key stakeholders in formulating a full supportive response to the Consultation.” 

Today, the International Public Sector Accounting Standards Board (IPSASB) is proud to announce that it will achieve gender parity in its membership for the first time. With the appointment of three new Board members, the IPSASB will be comprised of nine women and nine men beginning January 1, 2021. Additionally, Ms. Lindy Bodewig of South Africa has been appointed IPSASB Deputy Chair for 2021.

The new appointees to the IPSASB have been selected following a rigorous nominations and interview process involving the IFAC Nominating Committee, IPSASB leadership, IFAC Board, and the Public Interest Committee.

The three new Board members are:

• Dr. Mari Kobayashi, Japan
• Counselor Hervé-Adrien Metzger, France
• Ms. Renée Pichard, Canada

The following four current Board members have been reappointed:

• Mr. Todd Beardsworth, New Zealand
• Ms. Neema Kiure-Mssusa, Tanzania
• Mr. Bernhard Schatz, Austria
• Mr. Marc Wermuth, Switzerland

“Achieving gender parity is a great milestone that we should all be celebrating,” said IPSASB Chair Ian Carruthers. “The IPSASB relies on diverse perspectives and experiences to develop and deliver high-quality accounting standards that can strengthen public financial management globally. I look forward to working with both our incoming Board members and those members that will be continuing their service with us in 2021.”

The IPSASB also announces today the appointment of Lindy Bodewig as Deputy Chair for 2021. Ms. Bodewig has served on the Board since 2017 and is also a Member of the Accounting Standards Board in South Africa. She currently works in the Office of the Accountant-General at the South African National Treasury.

“Lindy brings a huge depth of expertise to the Board table, through the powerful combination of her day job in government and being a national and international standard setter for the public sector. With many important and challenging projects on our current agenda, I look forward to working alongside Lindy, and the other Board members and IPSASB staff, as we move our challenging and important work program forward,” said Mr. Carruthers. “I also wish to thank Michel Camoin, Do-Jin Jung, and Rod Monette who are completing their terms this year for their steadfast service to the IPSASB. They have all made excellent contributions to our work during their time with the Board, and we are grateful for their dedication and commitment.” 

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.