Regulation has become immensely complex and is impacting organizations’ opportunities to grow and innovate, according to the Global Regulation Survey, a study of accounting, finance, and business professionals conducted by the International Federation of Accountants^® (IFAC^®).

Approximately two-thirds of respondents said regulation is having a significant or very significant impact on their organizations’ opportunities to grow and innovate. Approximately four in five respondents reported that the regulation impacting their organizations is complex or very complex; that it has become more or much more significant over the past five years; and that it has a substantial impact on their organizations’ cost of doing business.

“Good regulation is essential to the fairness, efficiency, and effectiveness of economies, and making it work as well as it can is a never-ending mission,” IFAC Chief Executive Officer Fayez Choudhury said. “Growth remains a concern globally, and these results should be a wakeup call for us to examine the impact of regulation, including the regulation and reform introduced in response to the global financial crisis.”

The findings come as the combined effects of global, regional, and national post-crisis reforms begin to be felt by organizations, as well as the financial markets. “For many organizations, Basel III, recent EU reforms, Dodd-Frank, and multiple other sector- and country-specific regulations are all coming into play at once, and the scope of each is substantial,” Mr. Choudhury said. For example, Glass-Steagall, instituted in 1933 following the Great Depression, was 37 pages, compared with Dodd-Frank’s more than 2,000 pages in 2010. The first Basel Accord, introduced in 1988, had seven risk categories and required seven calculations; Bank of England Chief Economist Andrew Haldane has remarked on Basel III’s more than 200,000 risk categories, and more than 200,000,000 calculations.

The results also demonstrate that the regulatory approach across different regions is inconsistent, and almost half of respondents reported that collaboration between regulators is ineffective.

Four in five respondents expect the impact of regulation will continue to become more or much more significant in the next five years.

“There are urgent questions surrounding regulation’s impact on growth and innovation, as well as how its complexity is affecting the agility needed to face emerging risks and potentially the next financial crisis,” Mr. Choudhury said. “IFAC aims to collaborate with policy makers, regulators, and the organizations impacted to examine these questions and probe the impacts as a major priority.”

The Global Regulation Survey polled 313 accounting, finance, and business professionals in organizations ranging from small- and medium-sized entities to very large entities, operating in a wide range of industry sectors on six continents. The survey was conducted during July and August 2015.

About IFAC
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing over 2.8 million accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants^® (IFAC^®) today published in the Spanish language the following guidance for professional accountancy organizations (PAOs):

• Establishing and Developing a Professional Accountancy Body
• Tools and Resources to Support the Development of the Accounting Profession

The two publications are designed to support PAOs in expanding and strengthening their role and responsibilities in representing the accountancy profession. Establishing and Developing a Professional Accountancy Body covers the roles and responsibilities of a PAO, education and examinations, and capacity development. Tools and Resources to Support the Development of the Accounting Profession includes case studies, practical illustrations, and supplementary guidance.

These Spanish translations were performed by the Federación Argentina de Consejos Profesionales de Ciencias Económicas and are a result of the Ibero-American cooperation framework, known as the IberAm project. Established in 2012, the IberAm project—which includes IFAC and its member organizations in Argentina, Mexico, and Spain—is an IFAC-authorized translation and review process that strives to achieve longer-term, sustainable processes for single, high-quality Spanish translations of international standards and other IFAC publications. The Interamerican Accounting Association, IFAC’s regional organization for Latin America and the Caribbean, is an observer to the project.  In addition, the project involves a Review Committee of technical experts representing IFAC member organizations in nine Spanish-speaking countries.

“We are extremely grateful to the Federación Argentina de Consejos Profesionales de Ciencias Económicas for the work they’ve done in completing this translation, as well as to the entire IberAm group,” said IFAC CEO Fayez Choudhury. This initiative strengthens our profession by helping to improve quality and capacity and develop strong PAOs.”

These publications also are available in Arabic and French. For an overview of publication translations, please visit the newly enhanced IFAC Translations Database.

About IFAC
The International Federation of Accountants (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 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce. 

The International Federation of Accountants^® (IFAC^®) today published in the Spanish language the Handbook of the Code of Ethics for Professional Accountants, 2014 Edition, developed by the International Ethics Standards Board for Accountants^® (IESBA^®). The 2014 edition incorporates several revised pronouncements that were published previously and are now effective—addressing a breach of a requirement of the IESBA Code, conflicts of interest, and the definition of “those charged with governance.” It also contains the revised definition of “engagement team.”

“The IESBA Code has now been adopted or is in use in over 100 jurisdictions around the world,” said Ken Siong, IESBA Technical Director. “Spanish is a widely spoken language; indeed, it is an official language in 20 countries, which is why high-quality Spanish translations are critical to supporting the IESBA’s efforts to further the adoption of the Code globally and, importantly, to facilitate its consistent application.”

This Spanish translation was performed by the Instituto de Censores Jurados de Cuentas de España and is a result of the Ibero-American cooperation framework, known as the IberAm project.  Established in 2012, the IberAm project—which includes IFAC and its member organizations, in Argentina, Mexico, and Spain—is an IFAC-authorized translation and review process that strives to achieve longer-term, sustainable processes for single, high-quality Spanish translations of international standards and other IFAC publications. The Interamerican Accounting Association, IFAC’s regional organization for Latin America and the Caribbean, is an observer to the project. In addition, the project involves a Review Committee of technical experts representing IFAC members in nine Spanish-speaking countries.

For an overview of publication translations, please visit the IFAC Translations Database.

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

About IFAC
The International Federation of Accountants (IFAC) is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

The International Auditing and Assurance Standards Board^® (IAASB^®) today released an Exposure Draft proposing changes to International Standard on Auditing^TM (ISA^TM) 810, Engagements to Report on Summary Financial Statements. ISA 810 deals with the auditor’s responsibilities relating to an engagement to report on summary financial statements derived from financial statements audited in accordance with ISAs by that same auditor. The IAASB is proposing limited conforming amendments to ISA 810 as a result of the issuance of its new and revised Auditor Reporting standards, which address auditor reporting on general purpose financial statements.

“In light of its overall efforts to enhance auditor reporting, the IAASB believes it is also in the public interest to provide users of summary financial statements with greater transparency in circumstances when additional information, such as key audit matters, are communicated in the related auditor’s report on the audited financial statements,” explained Prof. Arnold Schilder, IAASB Chairman. “The proposed changes to ISA 810 represent a balanced approach considering the objective of an engagement to report on summary financial statements and the report that is required to be issued.”

“The board’s approach also recognizes that the manner in which summary financial statements are prepared and presented may vary on a national basis depending on the criteria used, and therefore national auditing standard setters may further tailor ISA 810 in their jurisdictions,” noted Kathleen Healy, IAASB Technical Director. “The board is therefore particularly interested in hearing from stakeholders in those jurisdictions where ISA 810 reports are frequently issued to understand whether its proposed changes will be capable of being implemented and would be expected to benefit users of these reports.”  

The IAASB has issued its proposals with a 90-day comment period in order to finalize them on a timely basis and align the effective date of ISA 810 (Revised) with the effective date of the new and Revised Auditor Reporting Standards (i.e., for audits of financial statements for periods ending on or after December 15, 2016).

How to Comment
The IAASB invites all stakeholders to respond to this Exposure Draft, which includes specific questions for respondents on key aspects of the proposals and highlights areas of focus for various stakeholders in responding to the Exposure Draft. To access the Exposure Draft and submit a comment, visit the IAASB’s website at www.iaasb.org. Comments on the Exposure Draft are requested by November 2, 2015.

About the International Auditing and Assurance Standards Board(IAASB)
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC).

About IFAC^®
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board^® (IPSASB^®) today released for comment Exposure Draft (ED) 56, The Applicability of IPSASs.

ED 56 proposes to:

• Revise the Preface to International Public Sector Accounting Standards to provide the characteristics of public sector entities for which IPSASs are intended;
• Delete the definition of Government Business Enterprises (GBEs) in IPSAS 1, Presentation of Financial Statements; and
• Amend the scope section of each International Public Sector Accounting Standard™ (IPSAS™) and Recommended Practice Guideline (RPG) by removing the paragraph that states that these pronouncements do not apply to GBEs.

ED 56’s proposed changes address constituents’ concerns about the application of IPSASs to public sector entities. Currently, each IPSAS includes a statement that it does not apply to GBEs, which are expected to be commercially-oriented public sector entities. The term “Government Business Enterprise” is defined in IPSAS 1, Presentation of Financial Statements.

The IPSASB received feedback that a wide range of entities are described as GBEs, but some of these entities clearly do not meet the IPSASB definition of a GBE. In other cases, there are different interpretations of the GBE definition.

“The proposals in this Exposure Draft provide a more transparent way to communicate the types of public sector entities that the IPSASB considers when developing IPSASs and RPGs,” said IPSASB Chair Andreas Bergmann. “They use a high-level, principles-based approach that draws on The Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities.”

“These proposals acknowledge the role of regulators in determining the accounting standards to be applied by different entities in their jurisdictions, and address constituents’ concerns about differing interpretations of the GBE definition,” Prof. Bergmann added. “We look forward to hearing whether constituents support the changes to IPSASs and RPGs proposed in this Exposure Draft or present alternative views.”

Publication of ED 56 follows the IPSASB’s consideration of responses to a Consultation Paper (CP), The Applicability of IPSASs to Government Business Enterprises and Other Public Sector Entities. The CP proposed two main approaches to communicate the IPSASB’s view of the entities for which it develops IPSASs. The first approach involved describing the characteristics of public sector entities for which IPSASs are intended. The second approach would have retained the definition of a GBE in modified form, potentially narrowing it to profit-seeking public sector entities.

A large majority of respondents to the CP supported the first approach of providing the characteristics of public sector entities for which IPSASs are intended using IPSASB’s current literature, rather than retaining and improving the definition of a GBE. The proposals in ED 56 give effect to that approach.

How to Comment
To access the ED and the At-a-Glance summary of the ED, or to submit a comment, please visit the IPSASB website at www.ipsasb.org. Comments on the Exposure Draft are requested by November 30, 2015. The IPSASB encourages IFAC^® members, associates, and regional accountancy bodies to promote the availability of this Exposure Draft to their members and employees.

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 World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland. The structures and processes that support the operations of the IPSASB are facilitated by IFAC.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

To support accountants in developing a greater awareness of how they can help their organizations address issues of sustainability and more fully incorporate these issues into business decisions, the International Federation of Accountants^® (IFAC^®) today released Accounting for Sustainability. From Sustainability to Business Resilience.

The briefing highlights the important role accountants can, and must, play in embracing sustainability challenges and ensuring that the organizations they serve are resilient by linking these challenges to a broader business agenda and strategy.

“Businesses are resilient when they are able to create and continue to deliver value to stakeholders, which involves considering both the risks and opportunities presented by sustainability issues, including environmental and social aspects, that ultimately affect financial performance and value creation,” according to IFAC President Olivia Kirtley. “Accountants working in the public and private sectors have a significant role to play in supporting and making the decisions that guide an organization’s ability to be resilient.”

The briefing examines the link between sustainability and business resilience, how integrating sustainability leads to better performance, and the key elements of developing a sustainable strategy and business model.

It clarifies how professional accountants can make a difference and includes references to some of the many resources and tools available to help develop knowledge and skillsets.

The briefing was previewed earlier this week during the Institute of Certified Management Accountants of Sri Lanka’s Global Management Accounting Summit in Colombo, Sri Lanka, by Ms. Kirtley. The conference, themed Business Resilience through Integrated Reporting, addressed many different issues related to integrated reporting, including sustainability.

About IFAC
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board^® (IPSASB^®) today released for comment a Consultation Paper (CP), Recognition and Measurement of Social Benefits.

The delivery of social benefits to the public is the primary objective of most governments and social benefits often account for a large proportion of a government’s budget. There is an opportunity for the IPSASB to improve its suite of standards by developing an International Public Sector Accounting Standard™ (IPSAS™) on social benefits. This CP asks constituents for their views on the different approaches identified.

“Users need information that allows them to evaluate the financial impact of the social benefits that governments provide,” said IPSASB Chair Andreas Bergmann. “The IPSASB considers there is a major need for guidance in this area. This Consultation Paper is the first step in achieving appropriate reporting of social benefits. We look forward to receiving constituents’ views on the options we have identified.”

This CP builds on the IPSASB’s previous work on accounting for social benefits while also developing new ideas. It defines social benefits as “benefits provided to individuals and households, in cash or in kind, to mitigate the effect of social risks.” The definitions of social benefits and social risks are consistent with those used in statistical reporting. The scope of the social benefits project includes social assistance and social security, but excludes programs that form part of an employer-employee relationship, other transfers in kind, and collective goods and services such as the provision of universal health care and education services. Consequently, this project has a significantly narrower scope than the IPSASB’s earlier work in this area.

The CP identifies three broad options to account for social benefits:

• Option 1: The obligating event approach. This approach considers social benefits by reference to the definition of a liability in The Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities. Obligations to pay social benefits are seen as no different from other obligations. The key issue is when a present obligation arises.
• Option 2: The social contract approach. This option is based on the view that there is an imputed social contract between the state and the citizens. Under this social contract, citizens agree to pay taxes to enable the state to provide social benefits. This is analogous to an executory contract for commercial transactions. Obligations are recognized when they become enforceable (or when claims for social benefits are approved).
• Option 3: The insurance approach. This approach considers that some social benefits are similar in practice to insurance contracts. It uses an insurance accounting model to measure schemes at the net present value of their cash inflows and outflows.

How to Comment
To access the Consultation Paper and the At-a-Glance summary of the Consultation Paper, or to submit a comment, please visit the IPSASB website at www.ipsasb.org/. Comments on the Consultation Paper are requested by January 31, 2016. The IPSASB encourages IFAC^® members, associates and regional accountancy bodies to promote the availability of this Consultation Paper to their members and employees.

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 World Bank, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, and the governments of Canada, New Zealand, and Switzerland. The structures and processes that support the operations of the IPSASB are facilitated by IFAC.

About IFAC
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

The International Auditing and Assurance Standards Board^® (IAASB^®) today released an Exposure Draft, Proposed Amendments to the IAASB’s International Standards—Responding to Non-Compliance or Suspected Non-Compliance with Laws and Regulations, to propose limited amendments to the IAASB’s International Standards in response to the International Ethics Standards Board for Accountants^® (IESBA’s^®) May 2015 Re-Exposure Draft, Responding to Non-Compliance with Laws and Regulations

“The IESBA’s Exposure Draft proposes a framework for professional accountants in deciding how best to act in the public interest when they come across an act or suspected act of non-compliance with laws and regulations, which will be highly relevant for auditors,” explained Prof. Arnold Schilder, IAASB Chairman. “The IAASB therefore believes that amendments are needed to the IAASB’s International Standards in the public interest to enable them to operate in concert with the IESBA standards and without confusion due to the many jurisdictions that utilize both.”  

The focus of the Exposure Draft is proposed amendments to International Standard on Auditing^TM (ISA^TM) 250, Consideration of Laws and Regulations in an Audit of Financial Statements, with less extensive changes proposed to seven other standards. The amendments, which are limited in nature, do not explicitly duplicate in detail all the specific requirements in the IESBA Code of Ethics for Professional Accountants^TM (the Code), as this allows for flexibility when ethical codes other than the Code are applied. Rather, the IAASB’s proposals seek to acknowledge the enhancements that will be made by the IESBA in the Code and clarify and emphasize key aspects of the IESBA’s proposals in the IAASB’s International Standards.

The IAASB’s Exposure Draft is open for comment through October 21, 2015, noted Kathleen Healy, IAASB Technical Director.

“The IAASB has issued its proposals with a 90-day comment period in hopes that stakeholders will consider them alongside the IESBA’s re-Exposure Draft,” she added. “The IAASB intends to continue to coordinate with the IESBA as both Boards move forward on this important topic.”

About the International Auditing and Assurance Standards Board (IAASB)
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC).

About IFAC^®
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants^® (IFAC^®), the global organization for the accountancy profession with members and associates in 130 countries, recently joined a multi-disciplinary group at the CESifo Institute in Munich, Germany, to share past lessons of over-borrowing and default, and analyze present weaknesses in sovereign debt management. The discussion was timely in light of Greece’s debt crisis.

The participants―accountants, economists, finance specialists, lawyers, statisticians, and representatives of academia, business, governments, international organizations, and think tanks—held varied views on how to resolve Greece’s debt crisis.

IFAC supports the argument that Greece must build trust and confidence with all stakeholders by making transparency and accountability its most urgent and important reform. Whether the issue is political, economic, or social—accounting matters, and starting with the right numbers is essential to assessing the economic and financial consequences of alternative solutions. Thus, a fresh start for Greece should begin with government financial information based on accrual-based International Public Sector Accounting Standards^™.

To support greater awareness of the need for higher quality government financial reporting, IFAC has convened the broad-based Accountability. Now. coalition. Coalition member organizations believe there is a better way forward for governments of all sizes and it starts with equipping governments with the foundation for good financial management: transparent, accountable financial information.

About Accountability. Now.
Accountability. Now. represents a coalition of organizations that believe there’s a better way forward for governments of all sizes. It starts with equipping governments with the foundation for good financial management: transparent, accountable financial information that: captures the entire picture of funding commitments, now and in the future; facilitates wise spending; strengthens economies; and builds trust with their citizens. Better quality financial information and increased transparency won’t solve all the challenges of governing, but they will greatly assist government decision making and performance.

About IFAC
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

The Integrated Reporting Working Group of the International Auditing and Assurance Standards Board^® (IAASB^®) has released a publication, Exploring Assurance on Integrated Reporting and Other Emerging Developments in External Reporting, to inform stakeholders about the board’s ongoing work in this area.

The publication’s release coincides with the issuance of the International Integrated Reporting Council (IIRC)’s Overview of Feedback and Call for Action. The IAASB commends the IIRC for furthering the debate on assurance on integrated reporting, and has been actively engaged with the IIRC in events supporting its 2014 consultation.

“The IAASB is committed to ensuring that its standards address the stakeholders’ emerging needs for assurance services and has been monitoring demand for assurance on integrated reporting for some time,” said Prof. Arnold Schilder, IAASB Chairman. “The IIRC’s work to develop its International <IR> Framework and the feedback from its public consultation is invaluable to the IAASB as it continues to consider how best to respond in the public interest to integrated reporting and other emerging developments in external reporting.”

The IAASB’s Integrated Reporting Working Group was initially formed to monitor the demand for assurance engagements on integrated reporting. The focus of the Working Group includes initial thinking on the nature of such engagements, the scope of the subject matter information and the suitability of criteria, and other matters related to assurance, including the IAASB’s existing assurance standards.

“The IAASB has an open mind as to the way forward and recognizes that other emerging developments in external reporting are equally relevant to its considerations,” said Merran Kelsall, IAASB member and Integrated Reporting Working Group Chair. “The Working Group will continue to engage with stakeholders and facilitate the IAASB’s debates to inform the development of a Discussion Paper exploring assurance issues in greater depth, including how practitioners are innovating to meet the needs of investors and other preparers and users of external reporting.”

For more information and updates on the project, visit the IAASB’s project page at www.iaasb.org/auditing-assurance/projects/integrated-reporting-working-group

About the IAASB
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC).

About IFAC^®
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.