The International Public Sector Accounting Standards Board^® (IPSASB^®) has released an Exposure Draft (ED), Public Sector Financial Instruments, Amendments to IPSAS 41, Financial Instruments, for comment. The ED provides guidance on how to account for a number of important categories of financial instruments that are unique to the public sector.

The proposed new Standard will augment existing guidance in IPSAS 41, Financial Instruments, and improves that Standard’s requirements by introducing guidance on:

• Monetary gold;
• Currency in circulation;
• IMF quota subscriptions; and
• Special Drawing Rights.

“The topics addressed in this Exposure Draft are unique to the public sector and have a significant impact on government finances,” said IPSASB Chair Ian Carruthers. “The final guidance will ensure users of IPSAS-based financial statements have the information they need about these important items for accountability and decision-making purposes.”

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 December 31, 2019. 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.

IFAC submitted a comment letter to further highlight the importance of the issues covered in the IAASB’s Discussion Paper, Audits of Less Complex Entities. 

Notwithstanding significant efforts by many stakeholders, including the IAASB and IFAC, concerns remain about the application of International Standards on Auditing (ISAs) to less complex entities (LCEs).  IFAC applauds the IAASB’s initiative to consider the situation holistically and chart the best way forward, and believes that these challenges will be best resolved through thoughtful and constructive input and engagement from the largest possible number of diverse global stakeholders. 

Click here to access the Audits of Less Complex Entities discussion paper.

IFAC strongly encourages all stakeholders to respond directly to the Discussion Paper or to participate in IFAC’s Audits of Less Complex Entities Survey by September 12, 2019. The survey is available in English, French and Spanish. 

The IESBA recently proposed changes to its Code of Ethics to promote the role and mindset expected of all professional accountants. To learn more about the key proposed changes, we invite you to our 60-minute webinar on Tuesday, September 10, 2019 at 8 am EST.

• Register Now

During the webinar, IESBA Deputy Chair Richard Fleck will provide an overview of the proposed revisions, which include:

• Highlighting professional accountants’ wide-ranging role in society and the relationship between compliance with the Code and a professional accountant’s responsibility to act in the public interest;

• Enhancing the robustness of the fundamental principles of integrity, objectivity and professional behavior;

• Requiring professional accountants to have an inquiring mind when applying the conceptual framework; and

• Highlighting the importance of being aware of bias and having the right organizational culture.

Comments to the Exposure Draft, Proposed Revisions to Promote the Role and Mindset Expected of Professional Accountants, are requested by October 31, 2019.

If you have any questions about this webinar, please email IESBA.

The International Public Sector Accounting Standards Board (IPSASB) today published its Biennial Review, Delivering for the Future, which summarizes the Board’s successes, challenges, and key outputs during 2017 and 2018.

The majority of the Board’s projects during the review period were public sector-specific in nature and aimed at closing perceived gaps in the IPSASB’s suite of standards, while maintaining alignment with International Financial Reporting Standards, when appropriate.

During 2017 and 2018, the IPSASB finalized IPSAS 40, Public Sector Combinations; IPSAS 41, Financial Instruments; and the landmark standard, IPSAS 42, Social Benefits. In addition, the Board approved two major Exposure Drafts (ED) 64, Leases, and ED 67, Collective and Individuals Services and Emergency Relief (Amendments to IPSAS 19).

“After celebrating the twentieth anniversary of the IPSAS program in 2017, these are exciting times for the IPSASB, with significant increases projected in the global adoption and implementation of IPSAS by governments in the short to medium term,” said IPSASB Chair Ian Carruthers. “The hard work, dedication, and commitment of my fellow IPSASB members and their technical advisors, all of whom are volunteers, together with the support of IPSASB staff, have been critical to the Board’s notable achievements during 2017 and 2018.”

The IPSASB Strategy and Work Plan 2019-2023 was also developed during the review period, which will guide the Board’s future activities toward its strategic objective.

To ensure it delivers in the public interest, the IPSASB’s strategic objective is: strengthening Public Financial Management (PFM) globally through increasing adoption of accrual-based IPSAS.

This will be delivered through two main areas of activity, both of which have a public interest focus:

• Developing and maintaining IPSAS and other high-quality financial reporting guidance for the public sector; and
• Raising awareness of IPSAS and the benefits of accrual adoption. 

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.

The International Ethics Standards Board for Accountants (IESBA) today proposes changes to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to promote the role and mindset expected of all professional accountants. The Exposure Draft, Proposed Revisions to Promote the Role and Mindset Expected of Professional Accountants, puts forward changes that further strengthen the Code.

The proposed revisions respond to stakeholder calls for the IESBA to explore whether and how the Code could contribute to strengthening the application of concepts underlying professional skepticism by all professional accountants.

Among other matters, the proposals:

• Highlight professional accountants’ wide-ranging role in society and the relationship between compliance with the Code and a professional accountant’s responsibility to act in the public interest;
• Include enhancements to the robustness of the fundamental principles of integrity, objectivity and professional behavior;
• Further strengthen the Code through requiring professional accountants to have an inquiring mind when applying the conceptual framework; and
• Highlight the importance of being aware of bias and having the right organizational culture.

The proposals were developed in coordination with the International Auditing and Assurance Standards Board and the International Accounting Education Standards Board.

The IESBA will host a webinar in September 2019 to provide an overview of the proposed revisions. Follow the IESBA on Twitter (@Ethics_Board) for updates on how to register for this event.

How to Comment 
The IESBA invites all stakeholders to comment on the Exposure Draft by visiting the Ethics Board’s website. Comments are requested by October 31, 2019.

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 Ethics Standards Board for Accountants (IESBA) is pleased to announce the reappointment of Dr. Stavros Thomadakis as IESBA Chairman for a further one-year renewable term commencing 1 January, 2020, which was recently approved by the Public Interest Oversight Board (PIOB).

Dr. Thomadakis has chaired the IESBA since 2015. His dedication to high quality, fit-for-purpose ethics standards for the global accountancy profession is reflected in the IESBA’s ambitious Strategy and Work Plan 2019–2023.

Under his leadership, the IESBA has revised and restructured the International Code of Ethics for Professional Accountants (including International Independence Standards), which became effective in June 2019. In addition, the IESBA recently launched the eCode – a web-based tool that delivers the Code on a digital platform.

“The IESBA continues to address challenging issues affecting the accounting profession with high-quality future-ready ethics and independence standards. That very goal underpins our ongoing coordination with the International Auditing and Assurance Standards Board (IAASB). The IESBA is committed to supporting global adoption and implementation of the Code with innovative tools that increase the Code’s accessibility and usability,” said Dr. Thomadakis. “I look forward to working further with board colleagues, IESBA staff, our Consultative Advisory Group and our global stakeholders to elevate ethics and advance the IESBA’s multiple projects in the public interest.”

Dr. Thomadakis is Emeritus Professor of financial economics at the University of Athens and an active member of the Hellenic Council for Corporate Governance. He was Chairman of the Hellenic Capital Market Commission from 1996 to 2004. From 2005 to 2011, he served as the first Chairman of the Public Interest Oversight Board. Until late 2015, Dr. Thomadakis was a member of the Securities and Markets Stakeholders Group of the European Securities and Markets Authority (ESMA).

About the IESBA
The 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, and follow us on Twitter @Ethics_Board. 

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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

Phenomenal disruptions and challenges surround us as we forge ahead into the uncharted territory of the digital economy. Yet as accountancy professionals sworn to uphold the public interest, we must hold steadfast to our intrinsic values of uncompromising integrity and accountability, regardless of the situation. Despite taking on multiple new roles as influencers, decision makers, and business advisors, we have a fundamental duty as financial stewards to innovate, reform and comply with standards and processes for the sake of good governance and sustainability.

With the advent of digital, we have an added responsibility to assess and integrate technology as an enabler for ethical business that benefits profit, people and planet.

Join the global profession at the MIA International Accountants Conference 2019 and explore how to resolve the trust deficit that afflicts the profession by embracing technology, good governance and sustainability in private and public sectors, and establishing ourselves irrevocably as stewards of the public interest and long-term sustainability.

The MIA Conference features top notch local, regional and global speakers. In 2018, the conference drew more than 3,000 delegates from commerce and industry, public sector, public practice and academia.

For more information and to register, visit the MIA Conference website.

The International Ethics Standards Board for Accountants (IESBA) today launched the eCode – a web-based tool that delivers the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) on a digital platform. In addition to “app-like” features and functionalities, this new platform better demonstrates the Code’s “building blocks” architecture and scalability.

The eCode represents the outcome of a strategic initiative to leverage modern technologies, including mobile access, to make the content of the Code as widely accessible and visible and as user-friendly as possible. In addition to enhanced search and navigation, the eCode includes links to non-authoritative resources that provide contextual information or explain the rationale for particular provisions in the Code.

“The eCode is an innovative response to stakeholder calls for more support for implementation,” said Dr. Stavros Thomadakis, IESBA Chairman. “Technology opens many opportunities for enhancement to the user experience, and with the eCode we have sought creative and appealing ways to do so. We firmly believe the eCode will greatly facilitate adoption, consistent application and enforcement of the Code in the public interest.”

“The launch of the eCode is timely as the Restructured and Revised Code came into effect earlier this month,” said Ken Siong, IESBA Senior Technical Director. “Technology is rapidly transforming the ways of work and how information is accessed and used. It is therefore apt to see the Code now accessible on a digital platform which users will find familiar and intuitive.”

The development of the eCode has benefited from the operational support of the International Federation of Accountants (IFAC) as well as staff support from the New Zealand External Reporting Board. The IESBA will continue its collaboration with these partners as it embarks on a second phase of this initiative to explore additional features as well as avenues to transfer the platform to adopters of the Code.

The eCode is available free-of-charge at www.IESBAeCode.org. The IESBA welcomes feedback from all stakeholders. In particular, views are sought about usability features, national adoption of the eCode platform, and areas for further improvement from firms, national standard setters, regulators and audit oversight bodies, professional accountancy organizations, investors and academia. Please email suggestions to IESBAeCode@ethicsboard.org.

Learn more about the Code, including the five fundamental principles of integrity; objectivity; professional competence and due care; confidentiality; and professional behavior on the IESBA’s website.

Click here to access tutorial-styled video on the features of the eCode.

About the IESBA
The 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, and follow us on Twitter @Ethics_Board.

IFAC (the International Federation of Accountants) today urged G20 countries to pursue smart regulation, heightened transparency, and inclusive growth to embrace Japan’s vision for an innovative and intelligent “Society 5.0”.

At a time of economic and political uncertainty, IFAC’s recommendations focus on actions that will strengthen the economy, ensure progress toward the Sustainable Development Goals, and create a fair and empowered digital economy

“While growth has returned to most economies, substantial uncertainty and downside risk remain, along with the temptation for unilateral policy actions,” said IFAC CEO Kevin Dancey. “We urge leaders to collaborate on solutions to evolving global challenges, and to ensure more citizens are able to enjoy the benefits of the digital age.”

Collaborating for a coherent international tax system is a core recommendation. IFAC stands with G20 leaders to call for global tax policies that address the complexity of the digital economy.

Ongoing tax and trade tensions demonstrate the desire for nations to act unilaterally on impactful issues. IFAC urges G20 countries to ensure a coherent, transparent global regulatory environment that limits fragmented regulatory regimes. The immense cost to the global economy—more than $780 billion USD annually in the financial sector—is unsustainable. 

Another G20 concern is addressing the needs of an aging society, which requires robust and resilient public sector practices. Accrual-based public sector accounting helps governments to develop a more accurate picture of national income, costs, assets and obligations. The result is increased transparency and accountability, and more informed decision-making to plan for the long-term.

G20 countries play a crucial role in fostering institutions and governance models that can anticipate, respond to, and optimize rapid technological change. IFAC issues these recommendations in advance of the 2019 G20 Summit in Osaka, Japan on June 28-29.

Mr. Thomas R. Seidenstein will become the new chair of the International Auditing and Assurance Standards Board (IAASB) for a three-year term commencing July 1, 2019. He succeeds Prof. Arnold Schilder, who has led the IAASB since 2009.

"Tom will skillfully navigate the IAASB through a period of change and transformation with his flexible and pragmatic approaches," said Ryozo Himino, Interim Nominating Committee Chair. "Being a collaborative leader and a natural consensus builder, he will continue to realize the potential of both the IAASB and its support in, and for, the global community.”

“I am honored to be selected as the IAASB’s next chair,” Mr. Seidenstein said. “Adopted and implemented worldwide, international standards on audit and assurance are a critical support to global financial market stability. I look forward to working with IAASB members, technical staff, and the leadership of other standard-setting boards to further strengthen cross-sectoral collaboration on key public interest issues and address emerging stakeholder needs. Together, we will advocate tirelessly for relevant standards that facilitate high-quality audit and assurance engagements.”

Mr. Seidenstein’s career spans both international standard setting and the private sector. He is currently senior vice president for Strategy, Innovation and Capital Management at Fannie Mae, a leading source of US housing market liquidity. He previously served as the chief operating officer at the International Financial Reporting Standards Foundation, where he led the organization’s governance review and reform process and worked closely with regulators to support global adoption of International Financial Reporting Standards. He holds a Master in Public Policy from the Harvard Kennedy School and is an undergraduate of the Woodrow Wilson School of Public and International Affairs, Princeton University.

Mr. Seidenstein’s appointment was recommended by the Interim Nominating Committee after an extensive international search. His appointment was endorsed by the IFAC Board and approved by the Public Interest Oversight Board, which oversees the IAASB.

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). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Interim Nominating Committee
Chaired by Mr. Ryozo Himino, Vice Minister for International Affairs, Japan Financial Services Agency, the Interim Nominating Committee was formed by the Monitoring Group to conduct an open and transparent search for the next IAASB Chair. Having successfully fulfilled its mandate, the committee will now dissolve.