Earlier today the International Federation of Accountants released their latest “Point-of-View” (POV): Embracing a People-Centered Profession.

The new publication explores the connection between the people in the accountancy profession, the core components of the profession (education, professional judgment, ethics, values) and the profession’s commitment to the public interest. 

“Our new POV focuses on the human aspect of our profession,” said Kevin Dancey, IFAC CEO. “Through this lens, we address issues such as gender equality, diversity (both of individuals and skills), work-life balance, mental health, and lifelong learning.  While many of the views expressed are not new, IFAC believes it is important to set out a clear message as the global voice of the accountancy profession.”

In the POV, IFAC offers insights and guidance on how firms, organizations and PAOs can better understand and appreciate the benefits and challenges of a profession made up of individuals.

IFAC also examines the relationship between a strong focus on “human capital” and the ability to attract, challenge, and retain talented people throughout their careers. 

“Events like the COVID-19 pandemic remind us that ours is a profession powered by individuals,” Dancey continued, “Individuals with their own talents, backgrounds, aspirations and challenges. Recognizing and appreciating the individual characteristics of professional accountants helps foster an environment where trust and judgment can thrive, and it is fundamental to the continued relevancy of the profession.”

To read the new POV, visit the IFAC Website here.

The International Federation of Accountants (IFAC), the voice of the global accountancy profession, announces the election of Alan Johnson as its President. Mr. Johnson will serve a two-year term through November 2022, serving previously as IFAC Deputy President since November 2018.

Mr. Johnson began his service with IFAC a decade ago when he joined the Professional Accountants in Business Committee. He was elected to the IFAC Board in 2015. Since 2018 he has chaired the IFAC Planning and Finance Committee, helped steer the development of IFAC’s new Strategic Plan, and represented IFAC in international forums and events.

“IFAC, working in the public interest, plays a critical role to support sustainable economic development and the development of international standards,” said Mr. Johnson. “Every year, IFAC provides expert guidance and advice to our member organizations and the millions of professional accountants they represent worldwide. I look forward to working with the IFAC Board, management, and membership organizations to continue delivering this support during a time of unprecedented challenges.”

A leading voice in accountancy, Mr. Johnson currently serves as the independent chair of the Internal Control Committee of Jerónimo Martins SGPS, S.A., a food retailer with operations in Portugal, Poland, and Colombia. He is also a member of the Board of Trustees at the International Valuation Standards Council, and chairs the board of Governors at the British School in Portugal. Previously he was chief financial officer of Jerónimo Martins and served on the company’s board. Mr. Johnson worked for Unilever for 35 years in various finance positions in Africa, Europe and Latin America, including chief financial officer of the company’s Global Foods businesses and the Group’s Chief Audit Executive. He has recently ended terms as Chair of ACCA's (Association of Chartered Certified Accountants) Accountants for Business Global Forum and as a non-executive director of the UK’s Department for International Development where he chaired its Audit & Risk Assurance Committee.

Asmaa Resmouki Named Deputy President

IFAC also announced the election of Asmâa Resmouki as Deputy President.  Ms. Resmouki has served on the IFAC Board since 2018 and as Governance Committee Chair since 2019.  With over 28 years of experience in the profession, Ms. Resmouki was an audit partner at both Deloitte and EY in Morocco, and served as vice president and president of the Pan African Federation of Accountants.  She currently runs her own firm, Resmouki Consulting. 

New Board Members Elected

IFAC also announced new board members, maintaining a female-majority board for the second year in IFAC history. Over the course of the past decade, IFAC is proud to have improved the gender balance on its board and advisory groups.

The new and re-appointed IFAC Board members and their nominating member organizations are:

• Mr. Jean Bouquot (The Conseil Supérieur de l’Ordre des Experts-Comptables and the Compagnie Nationale des Commissaires aux Comptes, France)
• Mr. Kohei Kan (The Japanese Institute of Certified Public Accountants, Japan)
• Prof. Chiara Mio (Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili, Italy)
• Mr. Atul Gupta (The Institute of Chartered Accountants of India, India)
• Ms. Taryn Rulton (Chartered Accountants Australia & New Zealand, Australia); and
• Re-appointment of Mr. Yacoob Suttar (The Institute of Chartered Accountants of Pakistan, Pakistan)

New IFAC Member Organizations Admitted

In addition to the election of new leadership and Board members, the IFAC Council also approved new member and associate member organizations.

IFAC welcomes the following Associates as new IFAC Members:

• Pakistan Institute of Public Finance Accountants
• Institute of Certified Public Accountants Rwanda

In addition, two professional accountancy organizations have been approved to join IFAC as Associates:

• Myanmar Institute of Certified Public Accountants
• Institute of Chartered Secretaries and Administrators in Zimbabwe

The new appointments and membership decisions were approved at IFAC’s 2020 Council meeting, held virtually on November 11-12.

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.

IFAC—the International Federation of Accountants—announced that Kevin Dancey will remain in his role as the organization’s Chief Executive Officer for a second term, which will begin June 1, 2021 and run through May 31, 2024.

Mr. Dancey, who has lead the organization since 2019, has provided critical guidance navigating issues and initiatives from the Monitoring Group, the Public Interest Oversight Board, the Global Public Policy Committee, and the independent standard-setting boards, while also managing external challenges brought on by the COVID-19 pandemic.

“Kevin’s steadfast leadership on issues currently affecting the accountancy profession and IFAC’s membership has been invaluable,” said IFAC President Alan Johnson. “IFAC’s ability to serve as the voice of more than three million professional accountants worldwide is critical to the accountancy profession and the global financial architecture, and that voice is stronger with Kevin as CEO.”

Mr. Dancey ushered in a new era for IFAC in terms of advocacy, outreach, and engagement with global stakeholders. From the recent call to action for the creation of an International Sustainability Standards Setting Board, to the relationships with the OECD, G20 and others, Mr. Dancey has led IFAC into new and positive territory.

“It is an honor to continue my role as IFAC’s Chief Executive Officer,” said Mr. Dancey. “While I am pleased with what we’ve been able to accomplish in the short time I’ve been here, especially with the unprecedented challenges brought on by the COVID-19 pandemic, I know there is more we can do for professional accountants worldwide. I look forward to working alongside the Board and the IFAC staff to push our profession further.”

Mr. Dancey’s extension was announced at IFAC’s 2020 Council meeting, held virtually on November 11-12.

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 International Public Sector Accounting Standards Board (IPSASB) today welcomed the Public Interest Committee’s recently released final Report: Review of the Oversight Arrangements for the International Public Sector Accounting Standards Board, addressing global feedback on the current arrangements and activities of the Committee.

Since its formation in 2015, the Public Interest Committee has actively provided advice and recommendations concerning the development and delivery of the IPSASB strategy and work program to ensure that the Board’s activities, the appointment process for its members, and its standard-setting due processes all reflect the public interest. The IPSASB is grateful to the current and former Committee members for their service, and the advice they have provided, as well as to the OECD, World Bank, IMF and INTOSAI for their support to date, and going forward.

“The implementation of formal independent public interest oversight arrangements through the establishment of the Public Interest Committee was a critical development for the IPSASB. Through its work in the intervening period, the Committee has made strong and positive impacts on public perceptions of the legitimacy of the IPSASB, the public interest focus of the Board and its standard setting processes, as well as its approach to stakeholder engagement,” said IPSASB Chair Ian Carruthers.

“I’m delighted the results of the public consultation exercise were overwhelmingly positive regarding the current oversight arrangements, as the Report states,” added Mr. Carruthers. “The IPSASB is committed to continuous improvement and working with the Committee to draw the most benefit from the points identified for further consideration, the importance of which will grow as IPSAS adoption and implementation globally continue to increase.”

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.

Today, the International Federation of Accountants (IFAC) awarded the 2020 IFAC Global Leadership Award in Honor of Robert Sempier to Ms. Ana Maria Elorrieta of Argentina, recognizing her tireless service and dedication to the accountancy profession. Ms. Elorrieta is distinguished as the first person from Latin America to win this award in its 23-year history.

Ms. Elorrieta has over 35 years of experience in the accountancy profession. Born in Buenos Aires, Argentina, she graduated with a degree in Accounting from the Universidad de Buenos Aires. She began her career with PwC Argentina, as a member of the first groups of female auditors, and then moved to Sao Paulo, Brazil to work with PwC Brazil, where she went on to become a partner.

Ms Elorrieta has served on the IFAC Board and the International Audit and Assurance Standards Board (IAASB). During her time at IAASB, she lead the task force that developed the International Standard on Quality Control (ISQC 1). She has also served in various roles at Brazil’s Federal Accounting Council and at the Institute of Independent Auditors of Brazil (IBRACON), where she was a member of the National Executive Board and the organization’s president from 2009 to 2011. In these roles, she worked to support Brazil’s adoption of IFRS, International SA’s and other key IAASB pronouncements.

Ms. Elorrieta has been recognized multiple times for her work in support of the accountancy profession in Brazil and globally. In 2012, she became the first non-Brazilian, and the first woman, to be appointed "Accountant Emeritus" by the Union of Accountants of the State of São Paulo. In 2013, she was listed by the International Accounting Bulletin as one of the 50 most powerful people in the accounting profession.

“I am honored to present the Global Leadership Award to Ana Maria Elorrieta, a dedicated and powerful voice for the accountancy profession world-wide,” said immediate past President of IFAC In-Ki Joo. “Ana Maria has worked tirelessly throughout her career to represent the interests of both Brazil and Latin America across the accountancy profession and has advanced the profession globally through her commitment to the widespread adoption of strong international standards.”

Established in 2017 by the IFAC Board, the IFAC Global Leadership Award in Honor of Robert Sempier recognizes individuals who make outstanding contributions to the global accountancy profession. The award honors the contributions of Robert Sempier, IFAC’s first executive director who greatly contributed to the development of the profession worldwide.

The Global Leadership Award was presented during IFAC’s 2020 Council meeting, held virtually on November 11-12.

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.

To assist governments and government entities wishing to report in accordance with the accrual-based International Public Sector Accounting Standards (IPSAS), IFAC has developed a package of training materials, collectively titled Train the Trainer: Introduction to IPSAS.

Accrual accounting information provides greater transparency and is useful for accountability and decision-making purposes. Implementation of accrual accounting in the public sector is a significant priority across many jurisdictions, especially as public finances face increasing scrutiny as a result of the pandemic.

The training materials are aimed primarily at entities currently using a cash basis of accounting and transitioning to, or planning a move to, accrual IPSAS. The materials, which are available to trainers at no cost, are designed to be used flexibly and can be tailored to the needs of training participants.

The course is structured over ten modules with each broken down into topics that stand alone and can be delivered as individual sessions. The training topics include assets, liabilities, financial instruments, and first-time adoption of accrual basis IPSAS. Each module includes a training manual and an accompanying set of slides, with some modules containing supplementary video content.

IFAC remains committed to advocating for strong public financial management and to supporting IPSAS adoption and implementation. The Train the Trainer: Introduction to IPSAS materials are meant to aid public sector entities around the globe as they adopt high-quality accounting practices.

The International Public Sector Accounting Standards Board (IPSASB) has released the final pronouncement, COVID-19: Deferral of Effective Dates, which delays the effective dates of recently published Standards and Amendments to IPSAS by one year to January 1, 2023. Responding to the global COVID-19 pandemic and the challenges it has created, the purpose of this pronouncement is to provide stakeholders with additional implementation time.

“The COVID-19 pandemic has created significant pressures on the staff and other resources that public sector entities might otherwise devote to the implementation of upcoming IPSAS standards and amendments,” said IPSASB Chair Ian Carruthers. “A one-year deferral of the effective dates of these upcoming standards and amendments will provide much-needed operational relief to public sector entities.”

The Standards and Amendments which are impacted include:

• IPSAS 41, Financial Instruments;
• IPSAS 42, Social Benefits;
• Long-term Interests in Associates and Joint Ventures (Amendments to IPSAS 36) and Prepayment Features with Negative Compensation (Amendments to IPSAS 41);
• Collective and Individual Services (Amendments to IPSAS 19); and
• Improvements to IPSAS, 2019.

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

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

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

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

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

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

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

The four new Board Members are:

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

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

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

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

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

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

About the Nominating Committee

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

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

About the IESBA

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

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

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

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

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

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

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

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

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

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

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

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