The International Federation of Accountants (IFAC), which represents more than 3 million professional accountants globally, welcomes IOSCO’s new report in which it elaborates on its vision and expectations for the IFRS Foundation’s work toward a global baseline of investor-focused sustainability standards.

IFAC has long advocated for the IFRS Foundation to establish an International Sustainability Standards Board (ISSB) focused on enterprise value creation, and based on a building blocks approach. Strong support from public authorities like IOSCO is critical to the success of the IFRS Foundation’s initiative. IOSCO has delivered this important support with its recent publication and related work under the Sustainable Finance Task Force.

IFAC specifically agrees with IOSCO’s analysis that investors are not currently getting the information they need from sustainability disclosures; that the IFRS Foundation should establish an ISSB alongside the IASB; that the ISSB will need to build on existing work; and that we need to create a flexible global system based on a building blocks approach. IFAC will continue to support IOSCO and the IFRS Foundation as they make progress on the ISSB. As momentum continues for harmonizing global sustainability-related reporting standards, IFAC has also initiated a workstream focused on global assurance related to sustainability information and looks to engage closely with IOSCO on any related investor protection issues.

IFAC CEO Kevin Dancey said, “IOSCO sets out a clear vision for the way forward on sustainability-related reporting—one that IFAC whole-heartedly agrees with. A global system for sustainability-related reporting will meet the information needs of investors and stakeholders more broadly. IFAC encourages IOSCO to continue actively engaging with the IFRS Foundation so that the unprecedented and necessary momentum toward establishing an ISSB can be maintained.”

Read more about IFAC’s views.

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 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

Global health leaders Gavi, the Vaccine Alliance and the Global Fund to Fight AIDS, Tuberculosis and Malaria have joined forces with the International Federation of Accountants (IFAC) to contribute to, and support, the implementation of robust accounting practices in the public health sector and to improve overall financial management of donor funds by implementing countries.

Through this Memorandum of Understanding (MoU), Gavi, the Global Fund and IFAC seek to strengthen the expertise of accountancy and finance professionals and help close the gaps in accountancy skills in implementing countries, which can impact the reliability and effectiveness of managing and disbursing funds. The MoU builds on a 2011 agreement and aims to optimize the joint efforts of global health partners to maximize the performance of investments and support the sustainability of health programs.

“Gavi has cooperated with IFAC and national accounting organizations for a number of years to ensure sound financial management of the funding we provide to countries – this agreement allows us to go much further with a focus on the health sector, in leveraging the expertise of the accountancy profession to boost transparency, build local skills and capacity to improve overall accounting practices, and build a stronger ethical framework,” Anuradha Gupta, Deputy CEO of Gavi, commented. “That will ultimately bring economic and societal benefits to everyone.”

“Equipping our implementing partners with the right financial management skills is essential to maximize the impact of our investments and contributes to greater results in the fight against HIV, tuberculosis and malaria,” said Adda Faye, Chief Financial Officer at the Global Fund. “We are excited to join efforts with Gavi and IFAC to strengthen financial management, reporting, accountability, and transparency to better serve the societies and people in countries receiving Global Fund investments.”

“Robust and transparent accounting and reporting systems are the bedrock of strong public financial management and are thereby critical to the effectiveness and impact of Gavi and The Global Fund's disbursement of lifesaving funds and resources,” said IFAC President Alan Johnson. “Leveraging our global network and accountancy expertise, this MoU underscores the unique value that IFAC and our member bodies bring to organizations with a shared interest in enhancing the accountancy function to build a resilient and sustainable public health sector that leads to a fairer society for all.”

This work will start with a number of pilot countries in collaboration with local professional accountancy organizations (PAOs). Gavi and the Global Fund will be responsible for funding, selecting beneficiary organizations, and monitoring the implementation of targeted capacity-building activities which include training, establishing and reinforcing accountancy standards, reinforcing ethics and whistle-blowing policies, implementing diversity and inclusiveness policies and helping set up appropriate legal foundations, governance structures, and operational capacity.

Ultimately, this partnership will lead to better integration of Gavi and the Global Fund investments into country systems, better internal controls to reduce fiduciary and financial risks, enhanced absorption of grants and ultimately greater impact.

About Gavi, the Vaccine Alliance
Gavi, the Vaccine Alliance is a public-private partnership that helps vaccinate half the world’s children against some of the world’s deadliest diseases. Since its inception in 2000, Gavi has helped to immunise a whole generation – over 822 million children – and prevented more than 14 million deaths, helping to halve child mortality in 73 lower-income countries. Gavi also plays a key role in improving global health security by supporting health systems as well as funding global stockpiles for Ebola, cholera, meningitis and yellow fever vaccines. After two decades of progress, Gavi is now focused on protecting the next generation and reaching the unvaccinated children still being left behind, employing innovative finance and the latest technology – from drones to biometrics – to save millions more lives, prevent outbreaks before they can spread and help countries on the road to self-sufficiency. Learn more at www.gavi.org and connect with us on Facebook and Twitter.

The Vaccine Alliance brings together developing country and donor governments, the World Health Organization, UNICEF, the World Bank, the vaccine industry, technical agencies, civil society, the Bill & Melinda Gates Foundation and other private sector partners. View the full list of donor governments and other leading organizations that fund Gavi’s work here.

About the Global Fund to Fight AIDS, Tuberculosis and Malaria
The Global Fund is a worldwide movement to defeat HIV, TB and malaria and ensure a healthier, safer, more equitable future for all. We raise and invest US$4billion a year to fight the deadliest infectious diseases, challenge the injustice which fuels them and strengthen health systems in more than 100 of the hardest hit countries. We unite world leaders, communities, civil society, health workers and the private sector to find solutions that have the most impact, and we take them to scale worldwide. Since 2002, the Global Fund has saved 38 million lives.

About 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 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants (IFAC), which comprises 180 member and associate organizations and represents over 3 million professional accountants globally, continues its work in support of a global system for delivering consistent, comparable and assurable sustainability information.

In its response to the U.S. Securities Exchange Commission’s (SEC) recent request for public input on climate change disclosures, IFAC emphasized the needs of investors and other stakeholders for climate and other sustainability-related information to be high-quality, decision-useful, and trusted.

A Building Blocks Approach provides the architecture for a global system that enables comprehensive corporate reporting for capital markets, while also addressing specific public policy initiatives like climate action and other jurisdiction-specific issues. IFAC believes that the IFRS Foundation’s initiative to establish a new International Sustainability Standards Board is a critical component of creating a global baseline of investor-focused reporting requirements. The IFRS Foundation’s ongoing work focused on climate disclosure will benefit all jurisdictions who are taking steps to address the urgency of climate change.

IFAC CEO Kevin Dancy said, “The U.S. and the SEC have played a critical role in the development of IFRS Standards for financial reporting, including convergence between the FASB and IASB and permitting foreign SEC registrants to use IFRS Standards to meet their U.S. reporting requirements. Today, as policymakers consider the best way forward for crafting an emerging global system for sustainability-related reporting, U.S. support is more important than ever. As the SEC explores climate-change related disclosure, IFAC urges the Commission to support a global approach.”

See IFAC’s response to the SEC on the IFAC website.

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 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

IFAC, the International Federation of Accountants, which comprises 180 member and associate organizations and represents more than 3 million professional accountants globally, welcomes the publication of the much-anticipated draft text of the European Union’s revised Corporate Sustainability Reporting Directive.

This ambitious proposal demonstrates leadership on the issue of corporate reporting. The legislation seeks to put sustainability-related reporting on the same footing as traditional financial reporting. This is long overdue. Specific proposals, such as where sustainability information is reported, mandatory assurance, a digital reporting taxonomy, and expanded scope for oversight by audit committees, are all important elements of enhancing the corporate reporting ecosystem to include sustainability-related information.  

As progress on the IFRS Foundation’s Sustainability Standards Board accelerates, IFAC believes policymakers have a unique opportunity to build a truly global system for sustainability reporting. We hope the EU’s important work ultimately contributes to—and amplifies the impact of—the emerging global system.

IFAC CEO Kevin Dancey said, “It is great to see a commitment to the needs of investors as well as other stakeholders, and to cooperation and alignment with international initiatives, including proposed work of the IFRS Foundation as well as the efforts of various public authorities. IFAC urges the IFRS Foundation to move with speed so that the benefits of baseline standards for enterprise value reporting will be available to all jurisdictions, while preserving the flexibility for disclosures that meet local needs addressing wider sustainability development goals. These are truly exciting times. We will continue to engage with the various stakeholders in this space as we all work toward the shared goal of a global system for reporting sustainability-related information in the public interest.”

Read Kevin Dancey’s recent letters to IFAC member organizations here and here.

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 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

IFAC, the International Federation of Accountants, which comprises 180 member and associate organizations and represents 3 million professional accountants globally, continues its work to support the establishment of global sustainability standards in the public interest.

In this regard, IFAC endorses the most recent actions announced by the IFRS Foundation Trustees and IOSCO. 

Specifically, IFAC supports the IFRS Foundation’s formation of a working group and efforts to set up a multi-stakeholder expert consultative committee, both of which will accelerate progress towards a successful standards setting board. These steps demonstrate the IFRS Foundation’s focus on delivering with speed by leveraging and bringing together the work of existing initiatives.

IFAC further supports IOSCO’s establishment of a new Technical Expert Group under its Sustainable Finance Task Force, which demonstrates growing international demand for the work of the IFRS Foundation.

IFAC CEO Kevin Dancey said, “IFAC reiterates its support for the IFRS Foundation to establish an international standard setting board with a focus on enterprise value creation, a unique connection to the work of the IASB, and backing from IOSCO and other authorities.  This approach offers the quickest and most effective route to a baseline of internationally consistent sustainability-related disclosures for enterprise value creation developed in the public interest.  IFAC calls for international collaboration and cooperation to make this initiative a success.”

Read Kevin Dancey’s most recent letter to IFAC member organizations here.

The International Federation of Accountants (IFAC) last week convened over 150 chief executives and senior leaders of professional accountancy organizations around the world, together with its Board of Directors, to discuss critical issues relevant to the future of the accountancy profession.

A key focus of the meetings was hearing from key stakeholders on the future of corporate and sustainability-related reporting, and how these fit into the broader context of sustainable business and finance, where professional accountants will need to play a pivotal leadership role based on their core competencies and ethical codes. 

Kevin Dancey, CEO of IFAC, said “As we consider the future of global economies and capital markets, and the need for better reporting on sustainability and value creation, there remains a clear need for the skills, business acumen, judgment and ethical core that have always been the domain of professional accountants.  As a profession, we are actively ensuring that we are ready to address this next generation of challenges and opportunities, including by calling for the creation of an international sustainability standards board under the auspices of the IFRS Foundation that stands to serve the public interest and ultimately the development of sustainable economies.”

IFAC recently issued a letter to its member organizations outlining its corporate and sustainability-related reporting agenda, which can be found here.

Several guest speakers added important context and input at IFAC’s meetings:

• Lee White, Executive Director of the IFRS Foundation, discussed the IFRS Trustees’ current consultation related to the proposed formation of a new sustainability standards setting board;
• Tajinder Singh, Acting Secretary General of IOSCO discussed IOSCO’s sustainable finance agenda, as well as their 2021-2022 Work Plan and progress on the Monitoring Group’s recommendations;
• Mervyn King, Chair Emeritus of the International Integrated Reporting Council (IIRC) and world-renowned expert on corporate governance and reporting, spoke to the strategic importance of the accountancy profession’s leadership and engagement in integrated thinking and sustainability reporting matters.

Each of the presentations by these individuals may be accessed at the links above.

Alan Johnson, President of IFAC, said “One of IFAC’s distinct advantages is convening strategic discussions and engaging with international organizations. Our global profession plays a key role in supporting the sustainable and equitable growth of economies, and it is both necessary and rewarding to be able to advance these important topics with and for our member organizations. We look forward to continuing to position the accountancy profession at the center of these conversations, and ensuring that we help organizations and governments deliver the United Nations’ Sustainable Development Goals.”

As an increasing number of businesses around the world implement integrated reporting as a route to long-term value creation and sustainable development, the demand for assurance services on such reports is expected to rise accordingly. To help meet this demand, and to increase confidence in integrated reporting, the International Federation of Accountants (IFAC) and the International Integrated Reporting Council (IIRC) are launching a new joint initiative, Accelerating Integrated Reporting Assurance in the Public Interest (“the Initiative”).

The Initiative recognizes that new thinking is required to determine what comprises integrated report assurance and how to best deliver it, given integrated reporting’s broad and forward-looking focus on value creation. The Initiative, which will be rolled out in installments, is designed to heighten awareness of key issues, drive constructive conversation with and among key stakeholders, and encourage providers and users of assurance services in particular to lend their voices to the effort.

The first installment is being released today and sets out what integrated reporting assurance involves for organizations, auditors, and others. This installment also addresses the difference between the two types of assurance - limited and reasonable - and what is required of auditors and organizations to strive for reasonable integrated reporting assurance.

Feedback on the Initiative and the first installment can be sent to stathisgould@ifac.org. All comments are welcome, especially those that address:

• perceived or actual opportunities and challenges for progressing integrated reporting assurance
• areas in which additional thought leadership and guidance would be useful for organizations, auditors and assurance providers.

Commenting on the initiative, Charles Tilley, Chief Executive Officer, IIRC said, “We believe the move toward assurance of integrated reports, particularly the move from limited to reasonable assurance, should lead to improvements in the quality of integrated reports and underlying business practices, and enable investors and other stakeholders to have more confidence in the information reported about the business and its resilience.”

Tjeerd Krumpelman, Global Head of Advisory, Reporting & Engagement, ABN AMRO N.V. said “We decided a few years ago to obtain cover-to-cover independent assurance, based on the <IR> Framework, from our financial statements auditor, EY, on our 2017 Integrated Report. We were a groundbreaker in this regard, and encourage all other integrated reporters to do the same. We believe this pathway has not only enhanced the credibility of our report and provided stakeholders with increased confidence, but we also received valuable reporting and process improvement recommendations. Our next step is to move from limited to reasonable assurance for parts of our integrated report, and to obtain assurance on other non-financial disclosures, such as our Human Rights report, because it makes good business sense.”

Kevin Dancey, Chief Executive Officer, IFAC, said, “Integrated reporting assurance, and indeed providing assurance on all non-financial (including sustainability) information, is a critical element in the future role of accountants, requiring them to apply their professional expertise to assurance engagements that enhance the credibility of corporate reporting. Practice needs to develop quickly in this immature part of the reporting and assurance world, particularly to provide confidence in narrative and forward-looking information. Professional accountants, as preparers and assurance providers, are uniquely qualified to help lead the way in this important area.”

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

About the IIRC
The International Integrated Reporting Council (IIRC) is a global coalition of regulators, investors, companies, standard setters, the accounting profession, academia and NGOs. The coalition promotes communication about value creation as the next step in the evolution of corporate reporting. The IIRC’s vision is to align capital allocation and corporate behaviour to wider goals of financial stability and sustainable development through the cycle of integrated reporting and thinking. Visit: www.integratedreporting.org

The global search for an individual to lead the International Ethics Standards Board for Accountants (IESBA) has begun and applications from qualified candidates around the globe are being accepted.

An essential element of the IESBA Chair’s role is to ensure that the activities of the IESBA maintain a public interest focus while developing high-quality ethics, including independence, standards. The Chair brings a strategic mindset to the development and implementation of Board objectives and fulfills several interrelated roles, serving as leader, spokesperson and stakeholder liaison. The incumbent will facilitate the consultative processes that underpin the board’s credibility and activities. He or she will also develop and maintain effective relationships with international oversight authorities and regulatory bodies, national standard setters, investor and corporate governance communities, preparers and other professional accountants in business, accounting firms, professional accountancy bodies, international policy makers and other key stakeholders.

The IESBA Chair must have significant and senior experience and will be well recognized within the professional and regulatory communities. He or she has effective leadership, diplomacy, communication and strategic skills; demonstrated professional competency; and a strong commitment to the IESBA’s mission to protect the public interest.

In line with recommendations of the Monitoring Group detailed in the Strengthening The International Audit And Ethics Standard-Setting System, the IESBA Chair will lead the board through the transition while maintaining the continued effective execution of the IESBA Strategy and Work Plan 2019 - 2023.

The IESBA Chair is a full-time executive position. The Chair is appointed for an initial three-year term, commencing January 1, 2022 and could be re-appointed for a total tenure of nine years. Relocation is not required for this role. However, candidates are expected to have a robust plan for how they would lead the IESBA and staff from a remote location. The role requires a commitment to significant international travel.

A complete job description, along with application instructions, is available online. Applications are due April 30, 2021.

This global search is being conducted by the Interim Nominating Committee, which was established by the Monitoring Group in February 2021 to conduct the selection process for the next IESBA Chair. More information on the Committee is available online.

The International Federation of Accountants (IFAC) today submitted its response to the IFRS Foundation’s Consultation Paper on Sustainability Reporting, issuing a resounding “yes” to the question of whether an international sustainability standards board is needed to lead a coherent global system of interconnected corporate reporting that will rationalize the current fragmented ecosystem for sustainability information.

Reiterating the themes of its September 2020 call-to-action, Enhancing Corporate Reporting: The Way Forward, IFAC calls for the creation of the new board alongside the IASB under the IFRS Foundation. The proposed board would address the urgent and growing demand from investors, policy makers and regulators for a reporting system that delivers consistent, comparable, reliable, and assurable information relevant to enterprise value creation, sustainable development, and evolving stakeholder expectations.

“This is a significant opportunity to bring new relevance to professional accountants’ work in corporate reporting and assurance and will advance the public interest,” said IFAC CEO Kevin Dancey. “The accountancy profession must continue to play an active role in helping companies, economies, and societies achieve a more sustainable future, made all the more urgent due to the climate emergency. IFAC stands ready to engage with the IFRS Foundation, as well as our member organizations and other stakeholders, to ensure the success of this important initiative.”

IFAC encourages our members and other stakeholders to review our response and engage in this important conversation with the IFRS Trustees.

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 more than 3 million accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board (IPSASB) has issued Non-Authoritative Amendments to IPSAS 41, Financial Instruments, to clarify the requirements for classifying, recognizing, and measuring a range of important public sector specific financial instruments.

This non-authoritative guidance is the final output from the IPSASB’s Public Sector Specific Financial Instruments (PSSFI) project and applies to four monetary items unique to the public sector: monetary gold, currency in circulation, International Monetary Fund (IMF) quota subscriptions, and Special Drawing Rights (SDRs).

The guidance underlines that public sector items that meet the definition of a financial asset or financial liability should be accounted for by applying existing IPSAS principles. It also clarifies the principles themselves to help improve financial information provided on public sector specific financial instruments.

“The publication of additional non-authoritative guidance in IPSAS 41, Financial Instruments, will enable preparers and users of public sector financial statements to obtain more relevant and comparable information that faithfully represents their public sector specific financial instruments,” said Ian Carruthers, IPSASB Chair. “Now more than ever, high quality financial information will help enhance government decision making as entities consider the use and issuance of these monetary items to address challenges posed by the ongoing COVID-19 pandemic.”

A Staff Q&A document will be released after this pronouncement to provide additional background information.

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.