The Consultative Advisory Group (CAG) of the International Public Sector Accounting Standards Board^® (IPSASB^®) has unanimously elected Thomas Müller-Marqués Berger as CAG Chair until June 2020.

Created in June 2016, the IPSASB CAG is a forum composed of 22 representatives of public and private sector organizations and individuals that are interested in, or affected by, the IPSASB’s work, including those engaged in the preparation, audit, or evaluation of public sector financial reports. The CAG provides advice to the IPSASB on the IPSASB’s strategy and work plan; IPSASB’s projects, including views on technical issues or matters that may impede the adoption and implementation of International Public Sector Accounting Standards^™; and other matters relevant to the IPSASB’s standard-setting activities. Mr. Müller-Marqués Berger was appointed inaugural Chair at the CAG’s inception in 2016 until the membership was in a position to hold a formal vote.

“I am delighted Mr. Müller-Marqués Berger will continue as CAG Chair. His election confirms that CAG members have valued his commitment and strong leadership since its first meeting in June 2016. He has helped develop the CAG as an effective forum for discussing key public interest issues related to the IPSASB’s work,” said IPSASB Chair Ian Carruthers. “I look forward to continuing to work closely with Thomas and the CAG members.”

Thomas Müller-Marqués Berger is a distinguished public sector accounting expert. Currently Global Head of International Public Sector Accounting for Ernst & Young, Mr. Müller-Marqués Berger’s deep experience in accounting standard setting includes chairmanship of the Public Sector Group of Accountancy Europe since 2011, membership of the German Public Sector Committee since 2002, and service to global standard setting as an IPSASB member from 2009–2014.

“I am very appreciative of the support expressed by the unanimous vote of the CAG members in electing me. The CAG has made great progress and we look forward to continuing to foster meaningful input to the IPSASB’s project work and to the development of the IPSASB’s next strategy and work plan,” said Mr. Müller-Marqués Berger.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. It receives support (both direct financial and in-kind) 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.

At the Chartered Institute of Public Finance and Accountancy (CIPFA)’s 2017 Conference in Manchester, UK, the International Federation of Accountants (IFAC) and CIPFA announced the launch of the Public Sector Financial Accountability Index.

Developed jointly by IFAC, as part of its Accountability. Now. initiative, and CIPFA, with the Zurich University of Applied Sciences as knowledge partner, the index will be the first of its kind to provide an accurate global picture of public sector financial reporting quality.

In particular, the index will provide a picture of the extent of accrual accounting and adoption of International Public Sector Accounting Standards. It will also aim to provide a better understanding of accounting and budgeting reform plans, and help stimulate public financial management (PFM) reforms.

The main output will be a regularly updated country-by-country public database. It will initially focus on central government, and expand over time to include state/provincial and local government.

The index will initially be populated with research data on individual countries and regions, collected by various international institutions. National standard setters will be invited to review, comment upon, and supplement the information, after which the first set of data will be made available in November 2017.

“The Public Sector Financial Accountability Index will provide better insight into the extent of global public financial reporting reform, and stimulate further reform,” said Fayez Choudhury, IFAC Chief Executive Officer.

“High-quality accrual-based information that captures the entire picture of a government’s finances and its funding commitments, both now and in the future, is the foundation for strong public financial management,” said Rob Whiteman, CIPFA CEO. “It strengthens economies, and, most importantly, builds trust with citizens. CIPFA is proud to be supporting the development of this index, which we believe will be a relevant and timely contribution to global PFM reform.”

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.

About CIPFA
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed.

Accountability. Now. is an initiative of the International Federation of Accountants (IFAC) to promote high-quality financial accounting and reporting by governments to improve transparency and help strengthen public financial management and accountability in the public interest. Further information can be obtained via the Accountability. Now. brochure.

IFAC and the World Bank Centre for Financial Reporting Reform hosted a joint Regional Small- and Medium-sized Practices (SMP) Forum for Europe and Central Asia on May 31 in Vienna, Austria.

The Forum provided the opportunity to discuss addressing the challenges and opportunities SMPs and medium-sized entities (SMEs) face. More than 20 representatives from regional and national professional accountancy organizations (PAOs) in Central Asia and Southeast and Eastern Europe attended, as well as practitioners, SMPs, and other stakeholders.

International and regional subject-matter experts shared important insights on professional ethics, efficiently implementing international standards, and practice management, among other topics.

Speakers and moderators included:

• Rachel Grimes, IFAC President
• Edward Olowo-Okere, Director, Governance, The World Bank
• Gunter Schall, Head of Private Sector & Development, Austrian Development Agency
• Monica Foerster, Chair, IFAC SMP Committee
• Mats Olsson, Deputy Chair, IFAC SMP Committee
• Hilde Blomme, Deputy Chief Executive, Accountancy Europe
• Carl Peterson, Vice President, Small Firm Interests – Public Accounting, Association of International Certified Professional Accountants
• John Hodge, Senior Financial Management Specialist, CFRR, The World Bank
• Ken Siong, Technical Director, International Ethics Standards Board for Accountants
• Paul Thompson, Director, European Federation of Accountants and Auditors for SMEs
• Ardiana Bunjaku, Executive Director, Society of Certified Accountants and Auditors of Kosovo
• Robyn Erskine, Member, IFAC SMP Committee
• Kalina Sukarova, Senior Financial Management Specialist, CFRR, The World Bank
• Beverley Bahlmann, Deputy Director, International Auditing and Assurance Standards Board
• Dawn McGeachy, Member, IFAC SMP Committee
• Hysen Cela, President, Institute of Authorized Chartered Auditors of Albania
• Manoj Fadnis, Member, IFAC SMP Committee
• Bonnie Ann Sirois, Senior Financial Management Specialist, CFRR, The World Bank
• Aliaksey Yeudachimovich, Belarus Association of Auditors
• George Williw, Member, IFAC SMP Committee
• Antoni Gomez, Member, IFAC SMP Committee
• Wassim Khrouf, Member, IFAC SMP Committee
• Alfred Borgonovo, Senior Financial Management Specialist, CFRR, The World Bank

The Forum agenda is available online; presentations are available below.

The Staff of the International Ethics Standards Board for Accountants (IESBA) has released a Q&A publication to support the adoption and implementation of the revised long association provisions Changes to the Code Addressing Long Association of Personnel with an Audit or Assurance Client, which the IESBA approved in December 2016 under the extant structure and drafting conventions of the Code (“close-off document”).

The Q&A publication is designed to highlight, illustrate, or explain aspects of the revised partner rotation regime in the extant Code, and thereby assist in their proper application.

As part of Phase 2 of the Structure of the Code project, the close-off document is currently being restructured in accordance with the new structure and drafting conventions of the Code. The restructuring will not change the substance of the revised provisions. The restructured provisions are expected to be published as part of the restructured Code by the end of Q1 2018. The Q&A publication will be updated to align with the final restructured provisions and will be re-issued around the same time as the restructured Code.

Global economic stability and transparency and the rebuilding of public trust will be greatly enhanced by a determined G20 push for stronger governance across all sectors, according to IFAC—the International Federation of Accountants. In advance of the G20 Summit 2017 in Hamburg, Germany on July 7-8, IFAC issued actionable recommendations for G20 countries that will support both the global economy and the G20’s 2017 objectives.

“Rebuilding trust in the global economy and financial systems is critical to inspiring the confidence the world needs for sustained economic growth. Especially in these uncertain times, stakeholders with a passion for transparent, accountable governance must work together,” said IFAC Chief Executive Officer, Fayez Choudhury. “Individuals and institutions must be empowered by strong governance; fortified by a consistent, transparent regulatory environment; and enabled by access to a high-speed, secure digital environment.”

IFAC calls on the G20 and other key stakeholders in the global economy to collaborate on:

• Raising governance standards across all economic sectors to increase transparency and accountability, and help restore trust and inspire confidence in business and government, key to the G20’s aspirations to: build resilience, improve sustainability, and assume responsibility.
• Fostering greater transparency and regulatory consistency to achieve growth, confidence, and stability. This requires an inclusive digital and economic environment for businesses of all sizes, as well as implementation and adoption of high-quality internationally-accepted regulations and standards.

IFAC’s member organizations represent almost 3 million accountants globally. They contribute nearly USD$250 billion gross value added annually, and facilitate higher standards of living. Recent research also shows that a higher percentage of accountants in the workforce strongly correlates to better outcomes in Transparency International’s Corruption Perceptions Index—and that the impact is improved even further when accountants operate in countries with strong governance architectures.

IFAC strengthens the accountancy profession by:

• supporting the development of high-quality international standards;
• promoting the adoption and implementation of these standards;
• building the capacity of professional accountancy organizations; and
• speaking out on public interest issues.

Visit IFAC’s website for IFAC’s full recommendations to the G20.

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.

Following on the fundamental reorientation of the IFAC Professional Accountants in Business Committee made to its meetings and communications in 2016, the committee has issued a report that shares the knowledge, ideas, and experience of the committee on developing a future-ready profession.

The report is designed to be accessible, with improved navigation, summaries that enable a fast read; and clearly identified future actions and recommendations.

The main themes in the report, and in the meeting it flows from, are:

• digital disruption and rapid cognitive business development;
• the continued evolution of the profiles of finance leadership and accountants in business;
• effective risk management;
• how integrated reporting can lead to better reporting outcomes; and
• how the new media landscape is changing the way we communicate.

The Committee, made up of an international group of thought leaders from IFAC member organizations, met in New York March 29-30 for its bi-annual meeting, chaired by Charles Tilley, Executive Chairman of the CGMA Research Foundation. Insights from the meeting will help raise awareness of emerging trends, challenges, and opportunities affecting the accountancy profession and accountants in business across the globe, and will help the global profession coordinate activities. 

The International Ethics Standards Board for Accountants^® (IESBA^®) today released for public comment the Exposure Draft, Proposed Application Material Relating to Professional Skepticism and Professional Judgment. The proposed guidance for the first time links key concepts in the IESBA Code of Ethics for Professional Accountants^™ (the Code) and clarifies their application, namely:

• how compliance with the fundamental principles in the Code supports professional skepticism by auditors and assurance practitioners for audit, review, and other assurance engagements; and
• the importance of professional accountants obtaining a sufficient understanding of the facts and circumstances known to them when exercising professional judgment in applying the conceptual framework underpinning the Code.

“Compliance with the fundamental principles and professional skepticism are essential obligations of professional accountants for audit and other assurance engagements,” said IESBA Chairman Dr. Stavros Thomadakis. “We are articulating for the first time the linkage between the two, making clear the important role that the fundamental principles play in enabling auditors and assurance practitioners to meet the public’s expectations about exercising professional skepticism.”

The proposed guidance addressing the fundamental principles and professional skepticism responds to a recommendation from the tripartite Professional Skepticism Working Group established by the IESBA, the International Auditing and Assurance Standards Board (IAASB), and the International Accounting Education Standards Board (IAESB).

“While developing this guidance, the IESBA also emphasizes the importance of professional accountants not simply accepting information at face value when exercising professional judgment,” noted IESBA Technical Director, Ken Siong.

Once finalized, this material will be included in the clarified and restructured Code that the IESBA plans to complete by the end of 2017. Beyond this, the IESBA will continue to explore further issues relating to professional skepticism in close coordination with the IAASB and IAESB, and in consultation with stakeholders.

How to Comment
The IESBA invites all stakeholders to comment on the Exposure Draft by visiting the Ethics Board’s website at www.ethicsboard.org. Comments are requested by July 25, 2017.

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.

The 2015-2016 Biennial Review: Sustaining the Momentum summarizes the International Public Sector Accounting Standards Board (IPSASB)’s achievements, challenges, and key developments in 2015 and 2016.

One of the major milestones during this period was the establishment of a new single-layer governance and advisory framework—the Public Interest Committee (PIC)* and Consultative Advisory Group (CAG)**—a landmark achievement for the IPSASB and its global stakeholders.

2015 and 2016 also saw IPSASB members sustain an ambitious stakeholder outreach program in support of one of the strands of the Board’s strategic objective—raising awareness of IPSAS and their benefits. The Public Sector Standard Setters Forum in particular elevated IPSASB’s outreach.

The Forum, jointly held in March 2016 by the IPSASB and the US Governmental Accounting Standards Board (GASB), was the first-ever global event for public sector standard setters and involved more than 70 participants from more than 30 countries and 22 organizations with standard-setting responsibilities, including ministries of finance with standard-setting responsibilities. The event created an environment to build a dialogue, exchange ideas, and discuss critical issues in standard setting.

This period also included substantial progress on the IPSASB’s work plan, including completion of eight new or replacement IPSAS and a number of limited scope projects.

Key continuing projects on which substantial progress was made include:

• Social benefits;
• Revenue and Non-Exchange Expenses;
• Heritage;
• Financial Instruments (both core standards and public sector specific); and
• Leases.

The Biennial Review provides detail on completed and ongoing projects.

In the Review’s introduction, IPSASB Chair Ian Carruthers highlights the importance of the IPSASB’s Strategy and Work Plan and the Conceptual Framework in shaping the IPSASB’s activities. The IPSASB’s Strategy for 2015 Forward: Leading through Change was the first full IPSASB strategy on which there was public consultation. The Conceptual Framework, published in October 2014, guides the IPSASB’s standard-setting approach.

The International Federation of Accountants (IFAC) facilitates the work of the IPSASB and includes IPSASB’s financial results within IFAC’s 2016 Financial Statements.

* The Public Interest Committee provides assurance that the IPSASB’s standard-setting activities are in the public interest.

** The Consultative Advisory Group is an integral part of the IPSASB's formal consultation process and provides advice on all aspects of IPSASB’s standard-setting activities, including IPSASB’s strategy, work plan, and projects, with a particular focus on implementation.

Significant changes in how auditors evaluate accounting estimates and related disclosures have been proposed by the International Auditing and Assurance Standards Board (IAASB). The changes will require auditors to sharpen their focus on risks of material misstatements arising from accounting estimates, and to address those risks with more granular audit requirements.

“Accounting estimates are used in many financial statements—often they are complex, and require judgement or have estimation uncertainty. It is especially important that auditors are required to design and perform procedures to ensure estimates’ reliability,” said Prof. Arnold Schilder, IAASB Chairman. “The proposed standard will bring significant changes to many audits, but particularly to audits of financial institutions, such as banks and insurers, given the recent shift to accounting for expected credit losses.”

The proposed standard continues the evolution of audit to meet the challenges of an increasingly complex global economy. It was developed following extensive consultation with regulators and practitioners, including those who audit small, medium, and large businesses.

The proposed standard:

• enhances requirements for risk assessment procedures to include specific factors related to accounting estimates, namely complexity, judgment, and estimation uncertainty;
• sets a more detailed expectation for the auditor’s response to identified risks, including augmenting the auditor’s application of professional skepticism; and
• is scalable regardless of the size or sector of the business or audit firm.

International Standard on Auditing 540 (Revised), Auditing Accounting Estimates and Related Disclosures, is open for public comment until August 1, 2017. The IAASB invites all stakeholders to comment on the Exposure Draft via the IAASB website. 

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.

The International Ethics Standards Board for Accountants^® (IESBA^®) today released an online survey seeking comments, views, and insights from all stakeholders to help shape its future strategic direction. The survey closes on July 18, 2017.

The survey seeks early input into the key issues the IESBA should address that might impact its Code of Ethics for Professional Accountants™ (the Code). This is a first step in the development of the IESBA’s strategy and work plan beyond 2018.

“By the end of 2017, the IESBA expects to have completed major projects to strengthen the Code as well as restructure it for greater clarity and usability. We recognize that beyond these improvements, it is in the public interest to continue to enhance the Code as a bedrock of public trust in the global accountancy profession, and to promote its further adoption and effective implementation around the world,” said Dr. Stavros Thomadakis, IESBA Chairman. “This survey is an important first step in gathering views on specific developments, needs, and priorities that will enable the Code to remain globally relevant, reinforce its high quality, and facilitate adoption and effective implementation.”

Responses to the survey will inform the IESBA’s development of a formal consultation paper on its Strategy and Work Plan beyond 2018. The consultation paper is expected to be issued in 2018.

A pdf version of the survey is also available.

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.