December
1, 2006
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In
this issue:
1. Fermín
del Valle Assumes Presidency of IFAC; Bob Bunting Named IFAC Deputy
President
On
November 10, 2006, Fermín del Valle of Argentina assumed the Presidency of IFAC
at the annual IFAC Council meeting in Istanbul, Turkey. Mr. del Valle previously
served as IFAC Deputy President from November 2004 to November 2006 and as a
member of the IFAC Board beginning in October 1997. Also at the meeting, the
IFAC Council approved the nomination of Robert L. Bunting of the United States
as IFAC Deputy President. Both men will serve a two-year term through November
2008 in their respective positions. To view their biographies, visit the IFAC
website at http://www.ifac.org/MediaCenter/?q=node/view/48.
2.
World's Accountants Converge in Istanbul for 2006 World Congress; Sempier Award
Presented to Marilyn Pendergast
Close
to 5,000 individuals from over 110 countries around the world attended the 17th
World Congress of Accountants in Istanbul, Turkey on November 13-16, 2006.
Leaders of the accountancy profession, the private sector, academia, and
government, including the Prime Minister of Turkey, spoke at the World Congress.
During the meeting, the Sempier Award for outstanding contributions to the
international accountancy profession was presented to Marilyn A. Pendergast,
CPA, of the United States for her leadership in strengthening the IFAC Code of
Ethics during her tenure as Chair of the IFAC Ethics Committee (now the
International Ethics Standards Board for Accountants). This award is presented
only once every four years.
Speeches
given at the World Congress are in the process of being posted to the IFAC
website. These may be viewed at http://www.ifac.org/MediaCenter/?q=node/view/239.
3. IAASB
Issues Three Clarity Exposure Drafts
In
November, the International Auditing and Assurance Standards Board (IAASB)
issued three new exposure drafts (EDs) as part of its ongoing program to redraft
existing standards and to develop new standards in the IAASB's new clarity
drafting style. The three proposed International Standards on Auditing (ISAs)
are:
These
EDs may be downloaded at http://www.ifac.org/Guidance/EXD-Details.php?EDID=0062.
Comments are requested by February 15, 2007, and may be emailed to edcomments@ifac.org.
4.
Proposals Sought to Develop Quality Control Guide for
SMPs
IFAC's
Small and Medium Practices (SMP) Committee is seeking proposals for the
development of an explanatory guide to assist SMPs in implementing International
Standard on Quality Control (ISQC) 1. The objective of the guide is to help SMPs
understand, comply with, and apply ISQC 1, which establishes standards and
provides guidance on a firm's responsibilities for its quality control system
for audits and other engagements. Proposals are requested by December 29, 2006.
For more information, see the Request for Proposal at http://www.ifac.org/Downloads/SMP_Quality_Control_Guide_Request_for_Proposal.pdf.
5.
Accountants in Business Get Global Knowledge Resource
On
October 2, 2006, IFAC and more than a dozen of its member bodies launched
IFACnet - a new global KnowledgeNet for professional accountants in business.
The IFACnet search engine provides one-stop access to high quality guidance,
management tools and articles developed by leading accountancy bodies from
around the world. Users of IFACnet will find on it a wide range of financial and
management accounting topics, including strategy, management, budgeting and
planning, corporate governance, and risk
management.
IFACnet
can be accessed on its home page (www.ifacnet.com) or through the websites of
IFAC and many of its member bodies.
6. IFAC
Proposes New Guidance to Help Companies Develop Codes of
Conduct
IFAC's
Professional Accountants in Business Committee has released proposed new
guidance designed to assist professional accountants in business and their
companies in developing and implementing codes of conduct. The proposed good
practice guidance, Defining and
Developing an Effective Code of Conduct, highlights the varied
roles of professional accountants in business in driving and supporting
organizational ethics and conducting ethics programs. It also provides practical
guidance on the design and development of such
codes.
The
proposed guidance may be downloaded at http://www.ifac.org/EDs, and comments are
requested by February 16, 2007.
7. IPSASB
Proposes Standard on Disclosure of External
Assistance
The
International Public Sector Accounting Standards Board (IPSASB) has issued an ED
designed to strengthen the disclosure of financial information about external
assistance and development aid received by governments and government agencies.
ED 32, Financial
Reporting under the Cash Basis of Accounting - Disclosure Requirements for
Recipients of External Assistance, proposes that the recipients'
financial statements disclose the total amount of external assistance received,
used, and available during the reporting period. It also encourages a range of
additional disclosures designed to further enhance the usefulness of the
financial statements.
The
EDs may be downloaded at http://www.ifac.org/EDs, and comments are
requested by March 31, 2007.
8. IPSASB
Issues Exposure Drafts on Employee Benefits and Impairment of Cash-Generating
Assets
In
October, the IPSASB issued two proposed new standards to improve public sector
financial reporting. ED 31, Employee
Benefits, is designed to assist governments and other public sector
entities to account appropriately for employee benefits. It would require public
sector entities to account for obligations under public sector defined benefit
plans and, when appropriate, recognize liabilities related to those obligations.
ED 30, Impairment of
Cash-Generating Assets, proposes the treatment of cash-generating
assets held and operated by public sector entities that are not Government
Business Enterprises.
Comments
on both ED are requested by February 28, 2007. They may be viewed at http://www.ifac.org/EDs.
9. IFAC
Focuses on Accountancy Development in Africa
Speeches
and other materials from the recent Africa Region Learning Workshop in Nairobi,
Kenya are available on the IFAC website.
The Workshop, which was sponsored by IFAC, the African Development Bank and the
World Bank, brought together representatives of 37 African nations, donor
agencies, and the accountancy profession to discuss the improvement of financial
reporting and the boosting of accountancy capacity in Africa. An important
outcome of the Workshop was the signing of the "Nairobi Declaration," which
calls for the creation of a Pan-African Federation of Accountants. For more
information, visit: http://www.ifac.org/DevelopingNations/africa_workshop.php.
10. World
Federation of Exchanges Endorses ISA Standard-Setting
Process
At
the meeting of its General Assembly in October 2006, the World Federation of
Exchanges formally endorsed the standard-setting process for establishing
International Standards on Auditing (ISAs). The World Federation of Exchanges
represents 57 securities and derivative markets that account for more than 97
percent of world stock market capitalization. ISAs represent an integrated body
of standards for use in all audits, including publicly traded companies, private
businesses of all sizes and government entities. For more information on the
International Auditing and Assurance Standards Board, which establishes ISAs,
visit: http://www.iaasb.org.
11.
Education Standards Board Seeks Comments on Proposed Strategic
Plan
The
International Accounting Education Standards Board (IAESB) is seeking comments
on its proposed Strategic and
Operational Plan for 2007 to 2009. The proposed plan sets out the IAESB's
strategic direction and proposed projects and activities for the next three
years. A major focus of these activities will be on promoting convergence to and
measuring the implementation of International Education Standards. Comments on
the IAESB's proposed strategy are requested by February 28, 2007, and the ED may
be viewed at http://www.ifac.org/EDs.
12.
Ethics Education the Focus of Proposed New
Guidance
The
IAESB has also issued a proposed new International Education Practice Statement,
Approaches to
Developing and Maintaining Professional Values, Ethics and
Attitudes, which is designed to assist member bodies and other
accounting educators in developing professional values, ethics and attitudes as
part of the education and training for all professional accountants. The
proposed guidance also highlights good practice in ethics education and the
assessment of ethics education, stressing the importance of workplace learning
and a period of practical experience.
Comments
on the ED, which may be downloaded at http://www.ifac.org/EDs, are requested by
December 15, 2006.
For
more information about any of the items mentioned above or other information
about the IFAC, please contact: pr@ifac.org.
About
IFAC
IFAC,
the worldwide organization for the accountancy profession, is dedicated to
serving the public interest by strengthening the profession and contributing to
the development of strong international economies. IFAC is comprised of 155
members and associates in 118 countries, representing more than 2.5 million
accountants in public practice, education, government service, industry and
commerce. IFAC, through its independent standard-setting boards, sets
international standards on ethics, auditing and assurance, education, and public
sector accounting. It also issues guidance to encourage high quality performance
by professional accountants in business.
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