The International Federation of Accountants (IFAC) Member Body Compliance Program, launched four years ago, has reached a major milestone in its mission to encourage accountancy organizations worldwide to work together with their members, regulators, standard setters, and other key stakeholders to strengthen the profession. The Compliance Program is comprised of a three-part process:

• A member organization's assessment of its country's regulatory and standard-setting framework;
• A self-assessment of the extent to which a member body has committed to international convergence of standards and promoted the implementation of strong quality assurance and enforcement regimes as specified in IFAC membership requirements; and
• The development of action plans to further the convergence process and meet other IFAC membership requirements.

The Compliance Program is now in this third phase and, today, the actions plans of IFAC members from six countries were publicly released on the IFAC website.  The six members are:

• Federación Argentina de Consejos Profesionales de Ciencias Económicas;
• Botswana Institute of Accountants;
• Chinese Institute of Certified Public Accountants;
• Chamber of Auditors of the Czech Republic;
• Institute of Certified Public Accountants of Kenya; and
• Corpul Expertilor Contabili si Contabililor Autorizati din Romania.

Representing four different continents, these actions plans are reflective of the kinds of programs and activities that all IFAC member organizations are developing in their own jurisdictions.

"These action plans demonstrate the leadership of the profession in engaging country stakeholders, such as regulators, government officials, academics, and others in further enhancing the quality of the profession and ensuring greater consistency worldwide," states Robert Mednick, Chair of the Compliance Advisory Panel that oversees the Member Body Compliance Program.

"Our expectation is that all of IFAC's 157 member bodies in both developed and emerging countries will develop actions plans that address the key elements of convergence, the subsequent implementation of standards and new regulatory initiatives," added Mednick. 

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 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC 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.

Mr. Prime Minister of the Republic of Trinidad and Tobago, Mr. Patrick Manning, distinguished guests, ladies and gentlemen, dear friends.

It is a pleasure to be here with you for this 26th Annual Conference of Accountants in the Caribbean.

I would like to thank the President of the Institute of Chartered Accountants of the Caribbean (ICAC), Angela Lee Loy, and the President of the Institute of Chartered Accountants of Trinidad and Tobago (ICATT), Sean Ramirez, for the invitation to speak to you today.

Let me start with a question.

Is it worth being an accountant? This is not a minor question to face for those of us who made this decision a long time ago. But it is even more important for the thousands of students who are making this decision now, and trying to determine what path they will follow. Of course, this question is also crucial for the future of our profession, because in order to have a future, our profession must be attractive to new generations. Hence, it is vital that we communicate the key role that professional accountants play in society to potential members and the wider world.

IFAC sees the accountancy profession and all professional accountants as effective agents for development in our societies. This places the accountancy profession in its true dimension, and makes the relevance and sustainability of our profession a matter of public interest.

As part of its ongoing commitment to support professional accountants in business and their organizations in enhancing governance and in assessing and delivering organizational performance, the International Federation of Accountants (IFAC) Professional Accountants in Business (PAIB) Committee has released two new proposed International Good Practice Guidance documents for public comment. The proposed guidance addresses evaluating and improving governance structures and use of costing to support effective decision making.

Governance
The newly released exposure draft, Evaluating and Improving Governance in Organizations, sets out a framework, a series of fundamental principles, practical guidance, and references on how to evaluate and improve governance in organizations. The purpose of this guidance is to assist professional accountants and their organizations in creating a balance between conformance with rules and regulations and organizational performance.

Costing
The second proposed International Good Practice Guidance, Costing to Drive Organizational Performance, is designed to assist professional accountants in business in delivering useful cost information to support effective decision making and organizational performance. The proposed guidance sets out eight fundamental principles of costing that encourage a performance-based view of costing to help professional accountants in business to ensure that costing information supports forward-looking strategic and operational decisions.

"This principles-based good practice guidance addresses key strategic and financial management issues that many professional accountants in business address in their daily work," states Edward Chow, Chair of the PAIB Committee. "Our goal is to develop principles-based guidance that offers a global perspective and places professional accountants in business at the heart of driving organizational performance."

How to Comment
Comments on the two proposed guidance documents are requested by September 23, 2008. They may be viewed by going to http://www.ifac.org/EDs. Comments may be submitted by email to EDComments@ifac.org. They may also be faxed to the attention of the PAIB Committee Technical Manager at +1-212-286-9570 or mailed to PAIB Committee Technical Manager at 545 Fifth Avenue, 14th Floor, New York, NY 10017, USA.

All comments will be considered a matter of public record and will ultimately be posted on the IFAC website. A summary of online feedback on the proposed governance guidance will also be posted on the IFAC website.
 
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 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. Through its Professional Accountants in Business Committee, IFAC issues guidance to encourage high quality performance by professional accountants in business.

Posted below is the speech by IFAC President Fermín del Valle at the second Conference on Accounting and Accountability for Regional Economic Growth in Latin America and the Caribbean, which was given in Spanish. An English translation of the speech will be posted shortly.

Recognizing that professional accountants in business play an important role in helping their organizations deliver long-term value, the International Federation of Accountants (IFAC) Professional Accountants in Business (PAIB) Committee has released new guidance on the use of discounted cash flow analysis and net present value in evaluating investments. Entitled Project Appraisal Using Discounted Cash Flow, this guidance was released as part of the PAIB Committee's new program to develop International Good Practice Guidance on financial and management accounting topics.

Discounted cash flow analysis and estimating the net present value of cash flows involve fundamental principles of finance that support disciplined financial management in organizations. Professional accountants in business have a role in promoting and explaining the importance of these principles in their organizations, particularly where the connections between the application of financial principles and related financial theory are not easily understood or accepted.

"This new guidance will help professional accountants in business to promote the importance of generating long-term value in their organizations," states Edward Chow, Chair of the PAIB Committee. "Professional accountants have a significant role in ensuring that their organizations focus on decisions that maximize expected value, rather than on their short-term impact on reported earnings. Companies with good records of value creation generally have better shareholder and investor acceptance."

Final Preface to International Good Practice Guidance
Together with the guidance, the PAIB Committee has released the final Preface to IFAC's International Good Practice Guidance. The Preface sets out the scope, purpose, and due process of the committee's new International Good Practice Guidance, which cover management accounting, financial management, and broader topics in which professional accountants in business are engaged.

Project Appraisal Using Discounted Cash Flow and the Preface is available on the IFAC website.

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 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. Through its Professional Accountants in Business Committee, IFAC issues guidance to encourage high quality performance by professional accountants in business.

Mid-sized enterprises, compared with their small and large counterparts, face unique challenges in virtually all aspects of their businesses, including strategic management, organizational and financial structure, corporate governance, risk management and internal control, management accounting, and business reporting. Recognizing that professional accountants in business play an important role in each of these business areas, the Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has released a new publication entitled The Crucial Roles of Professional Accountants in Business in Mid-Sized Enterprises.

This information paper features interviews conducted by Eric Krell, an experienced financial journalist, with 10 senior-level professional accountants in business on their experiences in mid-sized enterprises. The interviews illustrate the critical roles that professional accountants in business play in identifying and addressing the unique challenges that mid-sized enterprises face.

"While the professional accountants in business who were interviewed for this paper are from different enterprises all over the world, they confront similar challenges and their solutions point in the same direction," states Edward Chow, Chair of the PAIB Committee. "The experiences and the lessons that they share can help professional accountants in business and others in addressing similar issues, as well as in driving performance and creating value for their organizations."

This interview-based information paper is part of a larger PAIB Committee project on mid-sized enterprises. It will serve as the basis for the development of principles-based good practice guidance on the typical challenges that mid-sized enterprises confront and how professional accountants in business can help in responding to those issues.

The paper, along with a range of other publications on topics of interest to professional accountants in business, can be downloaded from the IFAC online bookstore. 

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 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC 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.

Good morning, ladies and gentlemen. It is a pleasure to be here with you for this meeting of the IOSCO Emerging Markets Committee.

IOSCO and IFAC share many common objectives, including promoting stable global capital markets, ensuring high quality financial reporting and auditing, and helping emerging nations to develop the infrastructures necessary to support sustainable long-term growth. 

Today, I would like to discuss how we can continue to collaborate to build a stronger, more stable global economy.

Let me start by pointing out that professional accountants, with their roles in all sectors of the marketplace, from auditing public companies, to working inside business and industry, in government, the not-for-profit sector, and academia, play a fundamental role in the economic growth of countries around the globe, including emerging markets. One significant area in which IFAC has worked to support professional accountants in fulfilling this role has been in promoting the adoption of a common set of high quality international accounting and auditing standards by all countries around the world.

Good morning, ladies and gentlemen. It is a pleasure to be here with you for this Forum for Strengthening the Accountancy Profession.

The city of Tunis is an excellent location for this gathering of international minds to discuss the challenges and opportunities facing the accountancy profession and where we see the profession going in the future. Just across Lake Tunis sits the ancient city of Carthage, one of the first international trade and business hubs in the world. Ever since that time, with succeeding Berber, Arab, Ottoman, and French cultures all leaving their mark, Tunisia has grown and thrived as a center of culture, international commerce and as a gateway between Africa, Europe and the Middle East.

Before I begin, I would like to briefly thank the Ordre des Experts Comptables de Tunisie and your President, Salah Dhibi, for hosting this event. I would also like to acknowledge and thank the two Tunisians who currently serve on IFAC boards and committees: Jelil Bouraoui, who serves as a member of the IFAC Board and as Deputy Chair of our Developing Nations Committee, and Hechmi Abdelwahed, who serves as a member of our Small and Medium Practices Committee.

It is through the service of volunteers like these gentlemen, and with the support and collaboration of IFAC's 157 member bodies and associates in 123 countries worldwide, and those of you gathered here today, that IFAC is able to fulfill its mission.

The core elements of IFAC's mission have remained constant throughout our 31-year history: serving the public interest, developing strong global economies, promoting international convergence, and serving as the voice for the global accountancy profession.

I believe that this mission will continue to guide our work in the future as we continue to build a strong and dynamic profession; one that is well-equipped to address the changing demands of the marketplace, to face ethical and technical challenges, to embrace new technologies and new types of reporting, and one that has the strength and the determination to continue to deliver quality.

The Public Interest Oversight Board has issued its third public report on its independent oversight of IFAC's public interest activities, including international standard setting for auditing, ethics and education, and the Member Body Compliance Program. The full report, which summarizes the PIOB's activities during the past year, is available on its website: www.ipiob.org.

The Public Interest Oversight Board has issued its third public report on its independent oversight of IFAC's public interest activities, including international standard setting for auditing, ethics and education, and the Member Body Compliance Program. The full report, which summarizes the PIOB's activities during the past year, is available on its website: www.ipiob.org.

Earlier this week in New York City, the International Federation of Accountants (IFAC) held a meeting with representatives of the emerging economies of Brazil, Russia, India and China (BRIC) to discuss their processes, achievements and challenges in adopting IFAC's international standards. More than 20 leaders of the accountancy profession, regulators and senior government officials from the BRIC countries attended this milestone event designed to help foster greater collaboration in achieving convergence to the global auditing, ethics and public sector accounting standards established by IFAC's independent standard-setting boards.

Government officials and leaders of the profession in all four countries indicated their commitment to adhering to IFAC standards and recognized that these standards play a vital role in ensuring that professional accountants and governments alike deliver high quality financial information. Each country presented an overview of their convergence plans and identified some of the challenges that they currently face, including capacity development, lengthy legislative processes, complex regulatory environments, and the need for translations of standards.

"We were heartened to learn that all of the participants were convinced that convergence is important for their countries and economies. This is indeed significant as these countries represent half of the world's population and are central to our global economy," states Fermín del Valle, IFAC President.

"We also realize that the road ahead for these countries, and many others in the emerging economies, is not an easy one. Their greatest challenge is moving from convergence to implementation, including remaining up to date on new and revised standards. IFAC is committed to helping these countries and others to meet this challenge," emphasizes Mr. del Valle.

The positive feedback from this meeting has prompted the group to consider setting up communications channels to continue the dialogue on technical and other convergence-related issues. IFAC will continue to support these initiatives and is encouraging other countries that share common interests or work in a shared region to work together on convergence and the implementation of international standards.

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 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.