• 51% of Gen Z feel it is important for their government to prioritize a national approach to policy, while 32% prefer a globalist approach.
• Gen Z’s top career priorities include: a stable career path (89% important or very important), competitive salary and benefits (87%), and work-life balance (84%).
• 73% of Gen Z respondents would consider a career in professional accountancy, and over one fifth (21%) have already decided to pursue an accounting career.

NEW YORK, SEPTEMBER 25, 2018 – Generation Z (Gen Z) is concerned for the economy and their job prospects, according to a new survey published today by IFAC (International Federation of Accountants), the voice of the global accounting profession. The survey of over 3,300 individuals aged 18-23 across 19 G20 countries takes the pulse of next-generation attitudes on public policy and career expectations.

Understanding Gen Z priorities will be critical for policy makers and employers alike, as public policy debates increasingly confront inter-generational trade-offs in wealth and as Gen Z is set to comprise the world’s largest generation.

Politically Engaged, Economically Conservative
This generation’s top public policy priorities are advancing economic stability, quality education, and job availability. However, views on how to achieve desired outcomes depend on geography. The survey found 51% of Gen Z’ers globally favor a nationalist approach to public policy, while 32% favor globalism and international collaboration.

Gen Z’ers in France (52%) and Germany (43%) most strongly support international policy collaboration, while preference for a nationalistic approach to public policy is strongest in China (65%), South Africa (63%), India (60%), and Russia (59%).

“Gen Z views appear to reflect the tension between national protectionism and global policy cooperation playing out in contemporary geopolitical and economic debates,” said Russell Guthrie, IFAC Executive Director. “The emphasis on economic stability speaks volumes about what the future will hold, given that this generation is already exercising its active and passionate voice on the global stage.”

Beyond the clash between national protectionism and globalization, other concerns include healthcare, especially in Canada, France, Germany and the U.S., and tackling systematic corruption, which was rated a top priority by respondents in Argentina, Brazil, India and Indonesia.

Desire Job Security in Stable Professions
Gen Z’s desire for stability is also apparent in its workplace expectations. They anticipate digitalization and emerging technology to be a double-edged sword, bringing new ways of working but also the decline of traditional jobs as a result.

Contrasted with the “live the dream at all costs” outlook commonly attributed to the preceding Millennial generation, Gen Z’s top priorities in choosing a career include a stable career path (89% important or very important), competitive salary and benefits (87%) and work-life balance (84%).

Gen Z’s perception of professional accountancy is highly aligned with its top two priorities in choosing a career. 87% of Gen Z see professional accountancy as attractive or very attractive in offering a stable career path, while 86% see the profession as meeting or exceeding their salary and benefits expectations.

Nearly three-quarters (73%) of Gen Z respondents would consider a career in professional accountancy, and over one fifth of respondents (21%) indicate that they have already decided to pursue a career in the profession.

“Generation Z brings a great wealth of new and unique talent to the global workforce. This survey identifies why the global accounting profession is well positioned to attract and retain next-generation talent, particularly as the role of the accountant becomes ever more strategic,” said Fayezul Choudhury, IFAC CEO. “Employers from all industries would be well suited to understand Gen Z perspectives as they come to shape the future of the workplace.”

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Survey Method
For this study, Generation Z is defined as individuals born between the mid- 1990s and mid-2000s. Conducted by IFAC, this study gives voice to 3,388 individuals between the ages of 18 and 23 in G20 countries. This represents a sample size of 150-300 participants from: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, and the US.

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

Effective governance is the outcome of a mosaic of organizational policies, processes, and cross-functional interactions, according to experts featured in a new report from The Institute of Internal Auditors (IIA) and IFAC (the International Federation of Accountants).

“United, Connected and Aligned – How the Distinct Roles of Internal Audit and the Finance Function Drive Good Governance,”  takes the pulse of 11 governance experts and thought leaders to examine the crucial roles both internal audit and the finance function play in maintaining a sound system of corporate governance.

The report identifies several key requirements for effective governance, including:

• An ethical corporate culture that empowers effective leaders throughout the organization to carry out good governance processes;
• Effective communication and collaboration among the various roles; and
• Requisite competencies for internal audit and the finance and accounting functions to earn stakeholder support and respect.

The governance experts who shared their knowledge and experiences include the leaders of the international professional associations that produced the report.

“Collaboration and cooperation between internal audit and the finance function is crucial to ensuring good governance,” said IIA President and CEO Richard F. Chambers, CIA, QIAL, CGAP, CCSA, CRMA. “Only by recognizing their distinct roles and the value in their successful interaction can organizations fully leverage the services they provide.”

IFAC’s President also stressed the benefit of the relationship.

“There is a deep need to pursue actions and preserve cultures that drive good governance,” said Rachel Grimes, IFAC President. “Professional accountants play a key role in governance at every line of defense, and abide by a global Code of Ethics that exemplifies the profession’s public interest mandate.”

The report notes that, because the two functions have complementary roles, their overlapping duties may help to avoid gaps in governance. Importantly, the experts demonstrate the need for both internal audit and the finance function to have champions within and outside the organization who advocate for their importance and value.

Chambers added, “Internal audit needs to be its own champion and work to articulate the benefits of including internal audit in the governance process. Stakeholders [executive management and the board] who understand the complex interactions and relationships that influence governance are best positioned to help their organizations succeed.”

“United, Connected and Aligned – How the Distinct Roles of Internal Audit and the Finance Function Drive Good Governance” represents an important collaboration between IFAC and The IIA, whose members represent a significant and vital segment of professionals who contribute to good governance. The organizations have a long, mutually supportive relationship, which includes a Memorandum of Understanding that promotes collaborative works and serve on each other’s boards and committees.

About The Institute of Internal Auditors
The Institute of Internal Auditors (IIA) is the internal audit profession’s most widely recognized advocate, educator, and provider of standards, guidance, and certifications. Established in 1941, The IIA today serves more than 190,000 members from more than 170 countries and territories. The IIA’s global headquarters are in Lake Mary, Fla. For more information, visit www.theiia.org.

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

Mr. Martin Baumann has been appointed Chair of the International Auditing and Assurance Standards Board (IAASB) for a three-year term beginning January 1, 2019. Mr. Baumann’s appointment was recommended by the Interim Nominating Committee after an extensive international search. The IFAC Board endorsed the Interim Nominating Committee’s recommendation, which was approved by the Public Interest Oversight Board (PIOB), which oversees the IAASB's activities. The Monitoring Group was informed of the recommendation.

“Martin Baumann is a leader who brings vision, a passion for the public interest and a depth of experience to the role of IAASB Chair," said Ryozo Himino, Interim Nominating Committee Chair. "As its next Chair, he will lead the IAASB during an important period of innovation and change as well as continuing the Board’s work developing high-quality international audit, assurance, quality control and related services standards that are accepted and used around the world."

As Chair, Mr. Baumann will lead the IAASB though an environment of rapid advances in current and emerging technology and changes in the breadth and complexity of information needed by investors and other stakeholders. He will be responsible for leading the finalization and implementation of IAASB’s strategic objectives; actively engaging key stakeholders around the world, including national standard setters, regulators, investors and firms of all sizes; and delivering timely high-quality standards in the public interest.

"The IAASB plays a vital role in the world's capital markets. High-quality professional standards developed in the public interest by the IAASB provide the markets with confidence in the important work done by auditors,” said Mr. Baumann. “I am committed to working tirelessly to ensure the IAASB meets its mandate, and continues to be recognized as a highly-regarded independent organization developing high-quality standards."

Mr. Baumann most recently served as Chief Auditor and Director of Professional Standards at the Public Company Accounting Oversight Board (PCAOB), where, with the Board, he was responsible for establishing auditing and related professional practice standards for audits of all companies registered with the US Securities and Exchange Commission. He also chaired the PCAOB’s Standing Advisory Group and served on the IAASB and International Ethics Standards Board for Accountants Consultative Advisory Groups. Previously he was Chief Financial Officer for Freddie Mac and a senior partner at PricewaterhouseCoopers.

Mr. Baumann succeeds Prof. Arnold Schilder, whose term as IAASB Chairman concludes after a decade of service at the end of 2018. Prof. Schilder has led the IAASB with distinction, from new landmark assurance standards addressing key aspects of sustainability reporting, to innovative and groundbreaking new auditor reporting standards, to enhancements now underway to the standards that seek to fundamentally improve audit. There are now nearly 130 jurisdictions around the world using or in the process of adopting the clarified International Standards on Auditing. Mr. Baumann will work closely with the current Chair commencing October 29, 2018 to allow for a smooth transition.

The Interim Nominating Committee was formed by the Monitoring Group in February 2018 to conduct the process for the next IAASB Chair. The Committee was chaired by Ryozo Himino, Vice Minister for International Affairs, Financial Services Agency (Japan), and was comprised of four other members including Guy Andrade, Huguette Labelle, Lord Jonathan Hugh Mance and Sir David Tweedie, and two observers, Rachel Grimes and Eddy Wymeersch. The Interim Nominating Committee followed an open and transparent process to select the most suitable candidate for the position. It will disband now that its mandate has been completed.

For more information about the work of the IAASB, visit its home page at www.iaasb.org.

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

The International Public Sector Accounting Standards Board^® (IPSASB^®) has released IPSAS 41, Financial Instruments.

IPSAS 41 substantially improves the relevance of information for financial assets and financial liabilities. It will replace IPSAS 29, Financial Instruments: Recognition and Measurement, and improves that Standard’s requirements by introducing:

• Simplified classification and measurement requirements for financial assets;
• A forward looking impairment model; and
• A flexible hedge accounting model.

“The significance of government debt to global capital markets can often be ignored,” said IPSASB Chair Ian Carruthers. “IPSAS 41 is a major step forward in accounting for financial instruments, and responds to the problems with IPSAS 29 that were exposed by the global financial crisis. It provides principles that appropriately reflect the economics of transactions involving financial instruments, replacing the more rules-based approach of its predecessor.”

IPSAS 41 is based on International Financial Reporting Standard (IFRS) 9, Financial Instruments, developed by the International Accounting Standards Board (IASB®), but it also includes public sector-specific guidance and illustrative examples on:

• Financial guarantees issued through non-exchange transactions;
• Concessionary loans;
• Equity instruments arising from non-exchange transactions; and
• Fair value measurement.

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

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

The International Ethics Standards Board for Accountants^® (IESBA^®) today released new enhancements to its global ethics code which address more fully the responsibilities of professional accountants around the offering and accepting of inducements.

The revised standard sets out a comprehensive framework that more clearly delineates the boundaries of acceptable inducements, and guides the behavior and actions of professional accountants in business and in public practice in situations involving inducements.

“Incentives motivate behavior, and some inducements can be a powerful incentive to unethical behavior,” said IESBA Chairman Dr. Stavros Thomadakis. “This revised standard complements our standard on NOCLAR to offer a full system of ethical defenses that relate both to malfeasance committed by others and to accountants’ own involvement in potentially unethical behaviors.”

Central to this framework is a new intent test that prohibits the offering or accepting of inducements where there is actual or perceived intent to improperly influence the behavior of the recipient or of another individual. The framework also:

• Clarifies the meaning of an inducement;
• Establishes a requirement to understand and comply with laws and regulations that prohibit the offering or accepting of inducements in certain circumstances, such as in relation to bribery and corruption;
• Guides professional accountants in applying the enhanced conceptual framework underpinning the International Code of Ethics for Professional Accountants (including International Independence Standards) where there is no improper intent; and
• Provides enhanced guidance on the offering and accepting of inducements by professional accountants’ immediate or close family members.

The revised provisions become effective June 2019, including consequential amendments to the independence provisions of the Code addressing gifts and hospitality. The changes constitute the last piece of the recently revised and restructured Code.

About the IESBA

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

Nearly 80% of jurisdictions worldwide have adopted International Standards for Auditing for mandatory audits, while more than 60% have fully adopted the international Code of Ethics for Professional Accountants, according to a new study by IFAC—International Federation of Accountants—on rates of adoption of international standards across 80 of the jurisdictions in which IFAC’s more than 175 member organizations operate.

High-quality international standards are essential pillars of the global financial architecture. Their adoption and implementation improve the availability of the high-quality financial information in the public and private sectors that improves decision making and ultimately results in greater economic growth, development, and accountability.

“This forward momentum is positive news for investors, governments, businesses of all sizes, global regulators and the public given these standards’ relevance to the entire global finance structure,” said Alta Prinsloo, Executive Director, Quality & Development. “Following comparable international standards enable businesses to produce financial information that decision makers can rely on.”

The data is included in a first-of-its kind report that assesses and publically reports on the global status of the adoption of international standards—International Standards: 2017 Global Status Report. The report details the high rates of adoption around the world, driven by IFAC and its member organizations, and positive results in several key areas, including ethics, financial reporting standards, and quality assurance, and provides examples of success and tools for continued progress.

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, today announced its first accountancy capacity building project in Southeast Asia. The project will assist the Myanmar Institute of Certified Public Accountants (MICPA) in its work to strengthen the accountancy profession in Myanmar. IFAC has selected the Association of Chartered Certified Accountants (ACCA) to partner with MICPA on the project.

ACCA will partner with MICPA to build a sustainable professional accountancy organization that can act as the cornerstone of the profession in the country. The project will deliver a strategic plan and new governance structure for MICPA, in consultation with key national stakeholders.

“This project will contribute to Myanmar’s ongoing economic reform in line with the new government’s policy of liberalization, which includes modernizing the accountancy profession,” said Alta Prinsloo, IFAC Executive Director, Quality & Development. “As the first project under this Program in Southeast Asia, it offers opportunity to make a positive impact in the region.”

Myanmar, currently in the process of democratic transition, is one of East Asia’s fastest growing economies. The new government is committed to attracting investment for sustainable growth, and its support of this project demonstrates its recognition of the critical role that the accountancy profession can play in this process.

This project is funded with UK aid from the UK government. In 2014, the UK Department for International Development (DFID) reached an agreement with IFAC to provide funding of almost £5 million for PAO capacity building in at least ten emerging countries over seven years. Projects under the IFAC Capacity Building Program using DFID funding are currently underway in several countries including Ghana, Kyrgyzstan, Rwanda and Zimbabwe.  Partner organizations are selected following global Calls for Expressions of Interest and an extensive proposal and review process by the IFAC PAO Capacity Building Program Independent Selection Panel.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

About DFID
The Department for International Development (DFID) leads the UK’s work to end extreme poverty. We're ending the need for aid by creating jobs, unlocking the potential of girls and women and helping to save lives when humanitarian emergencies hit. For more information visit www.gov.uk/dfid.

About MICPA
The Myanmar Institute of Certified Public Accounts is a professional body of Certified Public Accountants in Myanmar. The mission of the body is to communicate with international accountancy bodies and to distribute information to its members. MICPA was found under the Myanmar Accountancy Council (MAC), a policymaking body of accountants and auditors.

The International Ethics Standards Board for Accountants^® (IESBA^®) today released a completely rewritten Code of Ethics for Professional Accountants that is easier to navigate, use and enforce. Beyond the new structure, the Code brings together key ethics advances over the past four years, and is clearer about how accountants should deal with ethics and independence issues.

While the fundamental principles of ethics have not changed, major revisions have been made to the unifying conceptual framework—the approach used by all professional accountants to identify, evaluate and address threats to compliance with the fundamental principles and, where applicable, independence. New Code highlights include: 

• Revised “safeguards” provisions better aligned to threats to compliance with the fundamental principles;
• Stronger independence provisions regarding long association of personnel with audit clients;
• New and revised sections dedicated to professional accountants in business (PAIBs) relating to:
  • preparing and presenting information; and
  • pressure to breach the fundamental principles.
• Clear guidance for accountants in public practice that relevant PAIB provisions are applicable to them;
• New guidance to emphasize the importance of understanding facts and circumstances when exercising professional judgment; and
• New guidance to explain how compliance with the fundamental principles supports the exercise of professional skepticism in an audit or other assurance engagements.

“This is a groundbreaking moment in the public interest. The Code is now a significantly strengthened platform, re-engineered for greater usability while maintaining global applicability. It underscores the importance of the fundamental principles for all professional accountants,” said IESBA Chairman Dr. Stavros Thomadakis. “Critical work begins now within firms, national standards setters, regulators and audit oversight bodies, educators, IFAC member bodies and others to promote awareness of the Code, and support its adoption and implementation.”

“I congratulate the IESBA on this significant achievement,” said Kristian Koktvedgaard, Chair of IESBA’s multi-stakeholder Consultative Advisory Group (CAG). “A strong international Code of Ethics is one of the defining characteristics of the global accountancy profession. Clearer, more usable and enforceable independence and ethics standards are essential to public trust in the profession. The new Code establishes a solid base for “future-ready” ethics standards, and I am pleased that the CAG contributed to its development.”

Renamed the International Code of Ethics for Professional Accountants^TM (including International Independence Standards^TM), the new Code becomes effective in June 2019. It is the culmination of extensive research and global stakeholder consultation. Stakeholders can now access the new Code on the IESBA’s website, where implementation resources and other supporting materials will be released throughout the period leading up to the effective date.

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

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

The Zimbabwean Ministry of Finance, the nation’s Public Accountants and Auditors Board (PAAB), IFAC (the International Federation of Accountants) and Chartered Institute of Public Finance and Accountancy (CIPFA), gathered more than 200 senior officials from central and local government to discuss next steps in Zimbabwe’s migration to accrual accounting based on International Public Sector Accounting Standards® (IPSAS®).

Opening the meeting, Finance and Economic Planning Deputy Minister Terence Mukupe reaffirmed the government’s commitment to high quality accrual-based public financial reporting as a cornerstone of sound public financial management and effective, efficient public service delivery.

The Chief Secretary, Office of the President and Cabinet, Dr. M.J.M Sibanda, sent a message of support that confirmed political backing at the nation’s highest level. He acknowledged the contribution of quality accrual-based public financial reporting to enhanced public sector transparency and accountability—an essential element in building trust and confidence in government amongst the people, as well as domestic and foreign investors.

Key development partners in Zimbabwe, including the European Union, International Monetary Fund, UK Department for International Development (DFID), United Nations Development Programme, and the World Bank, shared their expectations for PFM Reform in Zimbabwe. They encouraged the government to use the recently-completed Public Expenditure and Financial Accountability (PEFA) Assessment to develop a national PFM Reform strategy.

Participants actively identified accrual accounting implementation solutions, drawing on global, regional, and local best practices shared by the Chartered Institute of Public Finance and Accountancy (CIPFA), Organisation of English-speaking African Supreme Audit Institutions, the Government of South Africa, and Government of Tanzania.

As an essential partner to government, the accountancy profession committed to continued strengthening of central and local government accountancy capacity—including attendees being offered access to CIPFA’s Certificate in IPSAS.

Key outcomes highlighted by Zimbabwe’s Accountant General, Daniel Muchemwa, included the establishment of a policymaking steering committee that will be supported by an implementation working group comprising meeting participants. They will meet quarterly to establish a high level implementation strategy and monitor progress in the migration to accrual accounting.

The event was supported by IFAC and CIPFA, and funded with UK aid from the UK government.

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.

In 2014, the UK Department for International Development (DFID) reached an agreement with IFAC to provide funding of almost £5 million for PAO capacity building in at least ten emerging countries over seven years. One of the projects under the IFAC Capacity Building Program using DFID funding is currently underway in Zimbabwe.

About DFID

The Department for International Development (DFID) leads the UK’s work to end extreme poverty. We're ending the need for aid by creating jobs, unlocking the potential of girls and women and helping to save lives when humanitarian emergencies hit. For more information visit www.gov.uk/dfid.

About PAAB

The Public Accountants and Auditors Board, Zimbabwe (PAAB) functions in terms of the Public Accountants and Auditors Act [Chapter 27:12]. It is the regulatory body for the accountancy profession in Zimbabwe. The PAAB’s mission is to protect the financial interests of the people of Zimbabwe and those with interests in the Zimbabwean economy by ensuring the maintenance of high standards of professional performance by members of the accountancy profession to foster investment.