• Upgrading Risk Management and Internal Control in Your Organization

    Vincent Tophoff and J. Stephen McNally
    IFAC Senior Technical Manager and Campbell Soup Company Finance Director and Comptroller
    Institute of Management Accountants’ Annual Conference
    Minneapolis, MN, US English

    Following a well-received presentation during the 2013 Institute of Management Accountants (IMA)’s Annual Conference, IFAC Senior Technical Manager Vincent Tophoff and Campbell Soup Company Finance Director and Comptroller J. Stephen McNally gave a follow-up presentation during the 2014 conference to discuss additional risk management and internal control (RM/IC) issues and considerations.

    This presentation addresses the maturity of RM/IC arrangements in an organization and details a case study looking at how Campbell Soup assessed the RM/IC arrangements of its North American co-manufacturing operations. The presentation concludes with a call to action for professional accountants to:

    • Build subject-matter-expertise in RM/IC frameworks, standards, and other guidance;
    • Educate audit committee, senior executives, operating units, and functional management on RM/IC;
    • Support line management by providing high-quality information;
    • Establish good RM/IC for the finance function; and
    • Champion the importance of continuous RM/IC improvement.

    This presentation follows the June 2013 presentation, Leveraging Effective Risk Management and Internal Control for your Organization.

  • Translations & Permissions eNews: July 2014

    New York, New York English
    World Congress Session on Best Practices in Translating Standards and Pre-Survey

    For the first time, the World Congress of Accountants (WCOA)  will include “Translating International Standards and Guidance: Best Practices and Tools to Achieve Quality Translations”—a workshop to review relevant IFAC® procedures to help achieve high-quality and widely accepted translations, share best practices, including information on electronic translation tools. It will be particularly useful for IFAC member bodies and adopting authorities in developing their strategies and approach to translating international standards and pronouncements, and may serve as a catalyst to establishing a more permanent type of user forum for translating bodies.

    The workshop will be held Wednesday, November 12; indicate your interest in attending when registering at the WCOA website: www.wcoa2014rome.com. In preparation for the session, we invite you to complete a short 3-minute survey consisting of 8 multiple-choice questions.

    New Translations & Permissions Online Request Platform Coming Soon

    To make it easier and more efficient to manage your translations and permissions requests, IFAC will launch a new permissions request management system in the coming months. If you haven’t already registered on the IFAC website, you can create an account here.

    Registered users will be able to use the new platform to manage all their requests in one place, clone existing requests to save time when placing new ones, and view the status of pending requests. Look for the new system on the Translations & Permissions home page in the third quarter. 

    Fees for Reproduction of Authorized Translations

    The availability of high-quality, faithful, and sustainable translations is vital to the adoption and effective and consistent implementation of international standards, and IFAC appreciates the resources and assistance that its designated translating bodies provide to help achieve that goal.

    The IFAC Board decided in 2013 to introduce an annual license/waiver fee for using IFAC-copyrighted materials, which generally applies to third parties wishing to reproduce materials translated by IFAC’s designated translating bodies.Such third parties might include non-IFAC member body adopting authorities, national standard setters, public sector entities, or IFAC member bodies other than the designated translating body. The intention of this fee is to help ensure sustainable translation processes. The amount of the annual license/waiver fee depends on a number of factors, such as the content requested, the rights granted by IFAC, and the size of the economy where the translated material will be used.

    Before using or undertaking any translation, please check with IFAC to ensure you have appropriate permission. IFAC staff will advise of the process and next steps, as well as the relevant fee, if any. Inquiries may be addressed to permissions@ifac.org. 

    Update on IberAm Project for Spanish Translations

    In October 2012, IFAC and its member bodies in Argentina, Mexico, and Spain agreed to establish an Ibero-American Cooperation Framework (the IberAm Project) to collaborate on a sustainable process for producing a single, high-quality, faithful Spanish translation of international standards and IFAC publications, press releases, and newsletters.

    During meetings in March and June 2014, the IberAm Executive Committee discussed the status of the 2013 work plan and approved the work plan for 2014. The two plans together include approximately 2,500 pages of translated material. The IberAm Review Committee, consisting of institutional representatives from nine Spanish-speaking countries, has held virtual meetings on a regular basis to review and approve the translated materials and to ensure a seamless and efficient collaboration. Look for these Spanish translations as they are finalized and become available later in 2014.

    Register and subscribe now on the IFAC website to receive Spanish-translated news and press releases from IFAC and the independent standard-setting boards.

    Reminder: Print Copies of Spanish IPSASB Handbook Now Available to Purchase

    The Spanish translation of the 2013 Handbook of International Public Sector Accounting Pronouncements, issued by the International Public Sector Accounting Standards Board® (IPSASB®), is available for purchase from the IFAC website. Facilitated by IFAC, with funding assistance from the World Bank, the translation was performed by the Department of Accounting and Finance at the University of Zaragoza, Spain. It was reviewed by an international committee consisting of public sector experts from Argentina, Chile, Mexico, Spain, and Uruguay.

    IFAC member bodies are encouraged to contact the relevant public sector entities in their countries, especially governmental entities such as ministries of finance, public sector accounting standard setters, and supreme audit institutions, to make them aware of the availability of this important publication. Purchase now on the IFAC website: 2013 Manual de Pronunciamientos Internacionales de Contabilidad del Sector Público.

    Progress on Russian Translation of 2013 IAASB Handbook

    Earlier this year, the National Organization for Financial Accounting and Reporting Standards (NOFA) Foundation became a designated translating body for the Russian version of the International Auditing and Assurance Standards Board® (IAASB®)’s pronouncements. The NOFA Foundation is also the official translating body for the Russian version of International Financial Reporting Standards.

    The Review Committee established by the NOFA Foundation represents the Russian Federation and other countries where Russian is an official language—Belorussia, Kazakhstan, and Kyrgyzstan. The Review Committee has finalized the translation of key terms from the pronouncements and made significant headway on the 2013 IAASB Handbook, which is expected to be completed in 2015. To date, the committee has translated and reviewed International Standard on Quality Control™ (ISQC™) 1, and many International Standards on Auditing™ (ISAs™) are in the process of translation and review.

    In the meantime, the Russian translation of the 2012 edition of the IAASB Handbook, translated by the Russian Collegium of Auditors, a designated translating body, is available for purchase in print and electronic format. See the IFAC Translations Database. 

    New Translations of IFAC Publications, Including Thai and Uzbek Translations

    With the addition of Thai and Uzbek, IFAC publications have now been translated into 48 languages. To view translated publications, please see the Translations Database.

    • Arabic—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2013); Handbook of the Code of Ethics for Professional Accountants (2013)
    • Bulgarian—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2013)
    • Dutch—Guide to Practice Management for Small- and Medium-sized Practices, Third Edition (2012); International Standard on Assurance Engagements™ (ISAE™) 3420, Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus (2011); Proposed International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to Review Historical Financial Statements (2011)
    • French—IFAC SMP Quick Poll: 2013 Year-End Round-Up (2013); Discussion Paper, The Role and Expectations of a CFO: A Global Debate on Preparing Accountants for Finance Leadership (2013)
    • Finnish—Guide to Quality Control for Small- and Medium-Sized Practices, Third Edition (2011)
    • Georgian—The Standard for Limited Assurance Review Engagements: Addressing the Needs of Small- and Medium-sized Entities (2012)
    • Hungarian—ISRE 2400 (Revised), Engagements to Review Historical Financial Statements (2013); International Standard on Auditing (ISA) 610 (Revised), Using the Work of Internal Auditors (2013)
    • Latvian—ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment (2012); ISA 610 (Revised), Using the Work of Internal Auditors (2012)
    • Portuguese—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012)
    • Russian—Handbook of International Public Sector Accounting Pronouncements (2013)
    • Romanian—International Education Standards™ (IES™) 1–7
    • Slovenian—ISA 610 (Revised), Using the Work of Internal Auditors (2013); ISRE 2400 (Revised), Engagements to Review Historical Financial Statements (2013)
    • Spanish—IFAC Monthly Updates; Global Digests; various press releases and newsletters from IFAC and standard-setting boards; “Developing and Reporting Supplementary Financial Measures” (2014); “Review Engagements—A Value-Adding Client Service” (2014) 
    • Thai—ISAE 3420, Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus (2013); ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment (2013); ISA 610 (Revised 2013), Using the Work of Internal Auditors and Related Conforming Amendments (2013); Evaluating and Improving Internal Control in Organizations (2012); Evaluating and Improving Governance in Organizations (2009)
    • Turkish—ISAs 530, 540, 550, 560, 570, 580, 600, 610, 700, 705, 706, 710, and 720 (2012)
    • Uzbek—Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements (2012); Handbook of the Code of Ethics for Professional Accountants (2012)
    FAQs—Logo Guidelines and Copyright Statements

    We’d like to thank IFAC member bodies and others that have been active in their efforts to translate the resources and international standards published on IFAC’s website. As a reminder, when finalizing translations, member bodies should follow the appropriate copyright protocol and guidelines for the use of the IFAC logo. Please refer to individual translation agreements and the graphics guidelines provided on our website.

    In addition, IFAC reminds all translating bodies to follow the proper steps to ensure the inclusion of relevant copyright statements and other formalities in the reproduction and/or translation of any IFAC materials. In addition, IFAC requests that member bodies remind adopting authorities to ensure that they have the necessary translation or reproduction agreements in place with IFAC, and to attribute content appropriately. Please use the Translations & Permissions Frequently Asked Questions (FAQs) as a resource and contact permissions@ifac.org with any additional questions.

    Important Changes to Registration on IFAC Website

    IFAC hosts and distributes hundreds of publications on its website. Register now to create a free account to continue to access the international standards set by the independent boards supported by IFAC, as well as to the valuable guidance, thought leadership, and policy positions developed by IFAC and its committees. As of June 25, 2014, registration is required to continue to access IFAC’s Publications & Resources.

    Only registered users can customize their subscriptions to press releases, issues of eNews, and The Latest from the Global Knowledge Gateway™; submit comments on exposure drafts and consultation papers; nominate a board or committee member; and comment, recommend, and suggest content for the Global Knowledge Gateway. Registered users will able be able to submit translation and permission requests (see above) when the new platform is launched in the third quarter. 

    2014 Handbooks—Available and Coming Soon

    The English versions of the 2014 Handbook of International Education Pronouncements and Handbook of International Public Sector Accounting Pronouncements are now available on the IFAC website. Print copies are available for purchase, and electronic versions may be downloaded from the website for personal use. The Handbook of the Code of Ethics for Professional Accountants will be published in July, and the Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements will be available in the third quarter of this year. 

  • IFAC and CIPFA Release Important New Framework for Good Governance in the Public Sector

    New York, New York English

    The International Federation of Accountants® (IFAC®) and the Chartered Institute of Public Finance and Accountancy (CIPFA) have together developed the International Framework: Good Governance in the Public Sector, to encourage more effective public sector governance.

    Over the past few years, governance in public entities has become a pressing issue gaining greater exposure as a result of the financial and sovereign debt crises and a constant stream of governance failures, including nepotism, inefficiency, corruption, and poor financial management.

    In response, the Framework encourages better governed and managed public sector entities by improving how they set and achieve their intended outcomes. Enhanced stakeholder engagement, robust scrutiny and oversight of those charged with primary responsibility for determining an entity’s strategic direction, operations, and accountability leads to more effective interventions and better outcomes for the public at large.

    “Public sector governance must focus explicitly on sustainable economic, social, and environmental outcomes, and this publication is unprecedented in highlighting the central role that outcomes and the public interest should play in the processes and structures of public sector governance,” said Ian Ball, Chair of CIPFA International. “Our focus on sustainability is also especially important as public sector entities, from local councils to national governments, must consider the long term impact of their current decisions, especially in safeguarding the interests of future generations.”

    Increased focus on the critical role that good governance plays in the public sector has been an all-too-recent development. Growing awareness of the substantial role of poor public sector governance in the sovereign debt crisis and other public sector failures has made the appropriate application of governance standards and arrangements more pressing than ever.

    On the launch of the Framework, IFAC CEO Fayez Choudhury said, “Good governance in the public sector requires an eye to the future, transparency, and accountability—principles that IFAC has consistently promoted, in particular with respect to the effects they have on the capacity to attract capital, global financial stability, and long-term sustainability. While adopting the International Public Sector Accounting Standards (IPSASs) is a critical step, improvement of other governance arrangements is essential if governments worldwide are to be successful in the sustainable development of our economies and societies.”

    Good Governance in the Public Sector establishes good practice principles for the fundamental aspects of public sector governance. The Framework also facilitates the review and update of national governance codes for the public sector and, where specific principles and guidance do not already exist, stimulates improvement.

    The ideas and insights outlined in the Framework, which includes a foreword from Mervyn King, Chairman of the International Integrated Reporting Council and author of the King Report on Governance for South Africa, were developed using a wide-ranging literature review and in consultation with an International Reference Group. The Framework is useful for all those specifically involved with governance, including governing body members, senior managers, and internal and external auditors. Furthermore, this Framework provides the public with a resource to challenge substandard governance practices in public sector entities.

    A digital version of the report can be found at on the IFAC and CIPFA websites.

     

    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 179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

    About CIPFA
    CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services.

  • IFAC – Current Issues and Initiatives

    Mario Abela
    Leader, Research and Development
    32nd Annual Caribbean Conference
    Paramaribo, Suriname English

    Mario Abela, Leader, Research and Development, recently gave a presentation to the 32nd Annual Caribbean Conference, held by the Institute of Chartered Accountants of the Caribbean. In his presentation, Mr. Abela provides an overview of IFAC and our current initiatives and priorities.

  • Pricing on Purpose: How to Implement Value Pricing in Your Firm, Parts I-III

    Ron Baker
    Founder, VeraSage Institute
    English

    Part I explains the rationale and underlying theories that support the switch from hourly to value pricing.

    Part II discusses early challenges and practical steps to take when beginning to transition your accounting practice to a pricing model based on value. 

    Part III outlines the 8 steps an accounting practice or firm should take to implement value pricing. Accompanying exhibits include practical checklists and forms.

    Articles by Ronald J. Baker. This three-part series of articles were excerpted, and adapted, from his latest book, Implementing Value Pricing: A Radical Business Model for Professional Firms, published by John Wiley & Sons, Inc., 2011

  • IFAC President Warren Allen Speaks on Governance to 3rd Saudi-Pak Accountancy Symposium

    Warren Allen
    President
    3rd Saudi-Pak Accountancy Symposium
    Riyadh, Saudi Arabia English

    IFAC President Warren Allen discussed the relationship between financial reporting and governance in remarks to the 3rd Saudi-Pak Accountancy Symposium, held May 15, 2014. 

    "The financial information is used to make economic decisions about an organization, its resources, and its future," he said. "The quality of that information will affect the quality of decision-making at every level." 

  • IFAC and Support for Capacity Building

    Warren Allen
    IFAC President
    Pan African Federation of Accountants Pre-General Assembly Conference
    Douala, Cameroon English

    In early May, IFAC President Warren Allen participated in the Pan African Federation of Accountant’s Pre-General Assembly Conference. Mr. Allen discussed capacity building for the accountancy profession in Africa and various initiatives, from IFAC and other professional accountancy organization, in the region. Mr. Allen also discussed the recent grant from the UK Department of International Development, as well as other global initiatives from IFAC.

     

    If you do not see the slides below, please click here.

  • International Framework: Good Governance in the Public Sector

    The International Framework: Good Governance in the Public Sector was jointly developed by IFAC and the Chartered Institute of Public Finance and Accountancy (CIPFA) to help improve and encourage effective public sector governance. The Framework encourages better governed and managed public sector organizations by improving decision making and the efficient use of resources.

    IFAC
    English

  • The Essential Experience for CAEs: Audit Committees' Need for Insight

    Olivia Kirtley
    IFAC Deputy President
    Institute of Internal Auditors’ 2014 General Audit Management Conference
    Orlando, FL, US English

    Drawing on her vast experience on multiple corporate boards and audit committees, IFAC Deputy President Olivia Kirtley recently addressed the Institute of Internal Auditors’ 2014 General Audit Management Conference. Ms. Kirtley addressed what information boards, especially audit committees, need for decision making and how the internal audit function could be best positioned to provide that information.

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