The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in more than 130 countries, is seeking an outstanding individual to become its next Chief Executive Officer. The successful candidate will join IFAC in late 2018 to allow for an orderly transition and will succeed current CEO Fayezul Choudhury when he steps down on December 31, 2018.

The successful candidate for the CEO role must have a keen interest in and deep personal commitment to IFAC’s mission: to serve the public interest by promoting the value of professional accountants worldwide; speaking out on public interest issues where the accountancy profession’s expertise is most relevant; developing strong professional accountancy organizations and accounting firms; and supporting the development, adoption and implementation of high-quality international standards.

The IFAC CEO must also exhibit superior leadership, management skills, a proclivity for strategic thinking, diplomatic and ethical behavior in both personal and professional life, and a future-focused attitude that will continue to drive IFAC’s strategy.

The CEO is expected to provide leadership in identifying and formulating policy positions on important issues impacting the global accountancy profession as well as critical public interest issues and will conduct outreach to build consensus on significant matters. The CEO works in close cooperation with IFAC’s volunteer leadership to support the organization’s mission and is responsible to the IFAC Board.

The international executive search firm Korn Ferry has been retained for the search and is partnering with IFAC to actively engage IFAC member organizations, the accountancy community, and other stakeholders in the recruitment process, encouraging a diverse and international applicant base. IFAC is initiating the recruitment process now to allow time for a comprehensive search and seamless transition.

Interested candidates should contact Korn Ferry Senior Client Partner Chuck Eldridge at chuck.eldridge@kornferry.com or Association Sector Leader Lorraine Lavet at Lorraine.Lavet@kornferry.com. For reference, the profile for the IFAC CEO can be found 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 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.

Dr. Stavros B. Thomadakis has been reappointed Chair of the International Ethics Standards Board for Accountants^® (IESBA^®) for a renewable one-year term commencing January 1, 2018, the key post Dr. Thomadakis has held since 2015.

Over the past three years, Dr. Thomadakis has championed the key role ethics play for the global accountancy profession in the public interest. He has also led the IESBA through significant projects relating to the Code of Ethics for Professional Accountants (the Code) and enhancing its understandability and accessibility, including responding to non-compliance with laws and regulations (NOCLAR) and restructuring the Code.

James Gunn, Managing Director, Professional Standards, said, “Dr. Thomadakis’ re-appointment is very much welcome. He has provided extraordinary dedication to this role and delivered tremendous leadership for various projects that have not only elevated awareness of the Code of Ethics but also enhanced the reputation of the IESBA as an independent standard setter.”

“I am honored to continue this journey with the Ethics Board, and have the opportunity to support the evolution and implementation of the global Code of Ethics. Our hard work is far from complete, and we will need to continue to be innovative and responsive to the evolving global public interest by achieving and maintaining high-quality ethics standards. The formulation of IESBA’s new Strategy and Work Plan is a major challenge for the next year. The pursuit of innovative and challenging new projects and the wider adoption of the Code will serve to solidify the reputation of the global profession of all accountants and their commitment to the global public interest,” said Dr. Thomadakis.

To access the Ethics Board Strategy and Work Plan, visit the Ethics Board’s website: www.ethicsboard.org.

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

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

The International Public Sector Accounting Standards Board (IPSASB) is pleased to announce the re-appointment of its Chair, Ian Carruthers, for a second three-year term commencing January 1, 2019. As Chair, Mr. Carruthers will continue to lead the Board as it establishes high-quality accounting standards for use by public sector entities, promote adoption and implementation of International Public Sector Accounting Standards (IPSAS), and issue guidance on public sector financial reporting. The Nominating Committee reappointed Mr. Carruthers early in his tenure to ensure leadership continuity as global adoption of IPSAS continues to advance.

“Mr. Carruthers has been an exemplary leader of the IPSASB, improving the strategic focus of the Board and efficiency of its activities, and deepening stakeholder relationships,” said James Gunn, Managing Director, Professional Standards. “Ian’s reappointment is welcomed at this important period for the IPSASB, and will help ensure continuity in dialogue with stakeholders as adoption decisions are considered in key nations and regions over the coming years.”

“I am honored to have been reappointed to continue to lead the IPSASB in helping to strengthen public sector financial management globally,” said Mr. Carruthers. “As IPSASB celebrates 20 years of standard setting, we are now addressing some of the most challenging public sector accounting issues, while ensuring our existing standards continue to suit the increasing complexity faced by the sector. We are also continuing to raise awareness of the benefits of adopting the standards for public sector accountability, transparency and sound decision making.”

After spending the first part of his career in PwC’s public sector practice, Mr. Carruthers joined HM Treasury in 1999, where he played a key role in the UK Government’s transition from cash to accrual budgeting and reporting, in particular leading its Whole of Governments Accounts program. In 2006, he joined the Chartered Institute of Public Finance and Accountancy (CIPFA), where he led CIPFA’s work on the role of CFOs in the public sector as well as working with IFAC on the development of the joint International Framework for Good Governance in the Public Sector. Mr. Carruthers continues to work with CIPFA, serving as its part-time Chair, Standards.

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.

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 Ethics Standards Board for Accountants^® (IESBA^®) today released for public comment the Exposure Draft, Proposed Revisions to the Code Pertaining to the Offering and Accepting of Inducements. The proposals strengthen the Code of Ethics for Professional Accountants (the Code) by clarifying the appropriate boundaries for the offering and accepting of inducements, and by prohibiting any inducements with intent to improperly influence behavior.

The proposed comprehensive framework covers all forms of inducements and applies to both professional accountants in business and professional accountants in public practice. It also provides enhanced guidance on the offering and accepting of inducements by professional accountants’ immediate or close family members.

“Inducements with intent to improperly influence behavior are a very major concern for the public interest, and they include the issues of bribery and corruption. Inducements made with improper intent are unacceptable and should be prohibited,” said IESBA Chairman Dr. Stavros Thomadakis.

Among other matters, the proposals also require professional accountants to address any threats to compliance with the fundamental ethical principles in accordance with the Code’s conceptual framework where there is no improper intent.

“The development of the proposals was informed by input from Transparency International UK based on their experience and insights in the area of bribery and corruption,” noted IESBA Technical Director Ken Siong. “When completed, the provisions will constitute the last piece of the substantively revised and restructured Code.”

How to Comment
The IESBA invites all stakeholders to comment on the Exposure Draft by visiting the Ethics Board’s website at www.ethicsboard.org. Comments are requested by December 8, 2017.

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

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

The International Public Sector Accounting Standards Board^® (IPSASB^®) has released a Consultation Paper (CP), Accounting for Revenue and Non-exchange Expenses.

The IPSASB seeks constituent views on potential recognition and measurement approaches for revenue and non-exchange expenses. Conceptually robust and understandable accounting treatments of taxes, transfers and other major sources of public sector income as well as expenses on universally accessible and collective services are fundamental to high-quality financial reporting. The publication of IFRS 15, Revenue from Contracts with Customers, by the International Accounting Standards Board, has provided the IPSASB with an impetus to consider its approaches both to commercial transactions and public sector specific transactions. The CP also considers recognition approaches for significant non-exchange expense transactions, such as the provision of education, healthcare and defense.

“This Consultation Paper is an important first step in addressing some key IPSAS implementation issues while seeking to maintain IFRS convergence,” said Ian Carruthers, IPSASB Chair. “It also provides an opportunity to address gaps in literature that have been identified in accounting for non-exchange expenses and the measurement of non-contractual receivables and non-contractual payables—such as taxes, fines and licenses.”

The CP proposes updating existing IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers), to address issues identified by users, as well as to replace current IPSAS dealing with revenue arising from exchange transactions and construction contracts with an IPSAS based on IFRS 15.

For non-exchange transactions with performance obligations the CP discusses two potential revenue recognition approaches.

(a)   Exchange/non-exchange approach – Under this approach the CP identifies five options for updating IPSAS 23, Revenue from Non-Exchange Transactions (Taxes and Transfers); and

(b)   The Public Sector Performance Obligation Approach for Revenue – Under this approach revenue would be recognized when identified performance obligations have been fulfilled, drawing upon the approach in IFRS 15 adapted for the public sector.

The CP discusses two potential approaches to the recognition of non-exchange expenses.

(a)   The Extended Obligating Event Approach – this approach would rely on the IPSASB’s Conceptual Framework to determine when a resource provider has a liability and expense; and

(b)   The Public Sector Performance Obligation Approach for Expenses – this approach would mirror the equivalent approach for revenue, and adapt it for non-exchange expense transactions.

The CP also discusses:

• Implementation issues regarding the recognition of revenue from capital grants and services in-kind;
• Initial and subsequent measurement of non-contractual receivables; and
• Subsequent measurement of non-contractual payables.

How to Comment
To access the Consultation Paper 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 January 15, 2018. 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 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 global standard-setting boards for auditing, accounting ethics and accounting education today released a new publication showcasing observations and potential ways to enhance professional skepticism.

The publication, Toward Enhanced Professional Skepticism, was produced by a joint working group comprised of representatives from the International Auditing and Assurance Standards Board (IAASB), International Ethics Standards Board for Accountants (IESBA) and the International Accounting Education Standards Board (IAESB). It outlines observations about the current environment and sets out actions the global standard-setting boards will take, as well as the role that other stakeholders can play, in enhancing professional skepticism.

The importance of professional skepticism is underscored by the increasing complexity of business and financial reporting, including the greater use of estimates and management judgment, business model changes due to technological developments, and the fundamental reliance of the public on dependable financial reporting. It lies at the heart of a quality audit.

“When this initiative began, the boards were looking for input on whether and how each of their standards could contribute to strengthening the understanding and application of professional skepticism as it applies to an audit,” said Prof. Annette Köhler, Joint Working Group Chair. “We have shared our observations and recommendations with the boards, and professional skepticism now features prominently in each of the boards’ strategic considerations.”

This publication is the first ever jointly commissioned by the three boards. Each of the boards has acted on the input received; the publication also includes a snapshot of their immediate actions and longer-term studies.

About the IAASB
The International Auditing and Assurance Standards Board (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.

About the IAESB
The International Accounting Education Standards Board (IAESB) develops education standards, guidance, and information papers for use by IFAC member organizations under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAESB, and the IAESB 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 IAESB are facilitated by IFAC.

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

Navigating the national regulatory environment is a crucial part of establishing and developing an effective professional accountancy organization (PAO). The right accountancy regulation model is vital to ensuring a well-functioning profession that produces high-quality financial information, supports economic growth and development, and is relevant to professional accountants and their clients. In light of regulatory evolution in recent years and the ongoing need for PAOs to adapt to, and actively influence, their environment, the International Federation of Accountants (IFAC) today released new guidance to support PAOs in these efforts.

“There is no ‘one-size-fits-all’ solution for accountancy regulation; there are many different models in place around the world that work effectively,” said IFAC Executive Director Alta Prinsloo. “Understanding the key principles of accountancy regulation, and how they function in practical terms, helps PAOs and their key constituents ensure the profession’s long-term sustainability, and their ability to continue to function in the public interest.”

Making Regulation Work: Principles and Models for the Accountancy Profession explores the scope of accountancy regulation, why it is needed, and key principles for consideration, as highlighted in IFAC Public Policy Position 1, Regulation of the Accountancy Profession and From Crisis to Confidence: A Call for Consistent, High-Quality Global Regulation. It also provides regulatory model examples used in a number of countries, with further information available in country profiles on the IFAC website.

The guidance is part of the PAO Capacity Building Series, which includes guidance on PAO governance, advocacy and public policy, partnerships, and engaging professional accountants in business. It also builds on one of the key findings of the MOSAIC PAO Global Development Report, which cites strengthening PAOs’ legal and regulatory foundations and internal capacity as a critical need for the global accountancy profession.

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.

Thinking beyond the financial elements of an organization to other key areas of value creation can help small- and medium-sized entities (SMEs) develop a better understanding of their business and provide key insights for the future. Today, it is critical for organizations to think broadly about performance and strategy, and improve communication to shareholders, investors, customers and suppliers on what drives value for the organization.

Creating Value for SMEs through Integrated Thinking: The Benefits of Integrated Reporting, published today by the International Federation of Accountants (IFAC) and the International Integrated Reporting Council (IIRC), highlights how SMEs—and the professional accountants serving them—can benefit from integrated thinking and reporting.

“As the engines of economic development, SMEs are critically important to the world’s economy,” said Sylvia Tsen, IFAC Executive Director. “They have significant value beyond the financial, which integrated thinking and reporting helps uncover. An integrated approach can help SMEs, including not-for-profits, increase their impact because it encourages an inclusive view of operations, risks and opportunities, and future outlook.”

Integrated reporting embraces the six capitals established by the IIRC’s International Integrated Reporting Framework: financial, human, intellectual, manufactured, natural, and social and relationship. Considering each holistically, organizations can build a clearer understanding of the factors necessary to build value over the short, medium, and long term, including how the business uses and effects its resources.

“Integrated reporting is well underway to becoming the global norm, so it has to work for all businesses, large and small,” said Richard Howitt, IIRC Chief Executive Officer. “I am delighted how this new publication shows the considerable benefits for smaller organizations. The IIRC’s principles-based framework is deliberately flexible so that SMEs can apply it to their own specific circumstances.”

Whether advising an organization or working within it, professional accountants are equipped with the skills and understanding to apply integrated reporting, help discover important insights, and provide stakeholders with a broader picture of how the business meets its strategic objectives. Additional resources to help professional accountants improve integrated thinking are available on the Global Knowledge Gateway, including Creating Value with Integrated Thinking: The Role of the Professional Accountant.

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 Auditing and Assurance Standards Board (IAASB) welcomes the adoption by the US Public Company Accounting Oversight Board (PCAOB) of a new auditing standard to enhance auditor’s reports by providing additional, relevant information to users, including critical audit matters.

The PCAOB’s new standard, which is subject to US Securities and Exchange Commission (SEC) approval, is comparable with the IAASB’s new and revised Auditor Reporting Standards, which require the communication of key audit matters in auditor’s reports of listed entities and became effective for December 2016 year-end audits.

“The PCAOB’s adoption of a standard to enhance auditor’s reports is a significant step forward in providing useful and relevant information to investors and other users,” said Prof. Arnold Schilder, IAASB Chairman. “Auditor’s reports are no longer “boilerplate” reports—auditors are now providing additional information about the audit, which is highly valued by users. We are particularly pleased that the PCAOB’s requirements are comparable to those of the IAASB. Coordination among standard setters is important in striving toward auditing standards that are, in principle, globally consistent.”

Two new publications comparing the IAASB and PCAOB standards have been developed by the IAASB’s Auditor Reporting Implementation Working Group. These publications will assist users in understanding the key similarities and differences between the IAASB and PCAOB requirements. Additional information on the IAASB’s new and revised Auditor Reporting Standards, as well as support materials, are available online.

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

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

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

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

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

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. It receives support (both direct financial and in-kind) from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

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