The International Federation of Accountants (IFAC) has unveiled proposed changes to the International Education Standards (IESs) that embed sustainability—from analysis to reporting to assurance—across aspiring professional accountants’ training.

IFAC CEO Lee White emphasized the significance of the proposed changes, stating, “Investors and other stakeholders need sustainability reports and disclosures that are on par with the high-quality, decision-useful financial reports that accountants already deliver. To be future-fit, accountants must develop the right competencies to meet this need. The proposals provide a robust framework for the profession to develop capable accountants who produce, report, and assure sustainability information.”

Key proposals include:

• Emphasizing working with experts and in multi-disciplinary teams;
• Introducing key sustainability reporting concepts, such as systems thinking, value chains and scenario analysis;
• Referencing relevant sustainability reporting and assurance standards; and
• Creating a new assurance competence area and learning outcomes.

Additionally, IFAC has proposed changes to IES 6, Initial Professional Development – Assessment of Professional Competence, to modernize the standard to align with current good practice and clarify previously-existing requirements. This includes introducing new principles emphasizing integrity, authenticity, equity, and inclusion. These changes will aid professional accountancy organizations, universities, and training programs in evaluating candidates’ readiness for the professional accountant role.

To help its stakeholders and the accountancy profession understand the proposed changes related to sustainability, IFAC will hold global webinars on May 21. Visit the IFAC website for additional details and to register.

IFAC encourages all stakeholders to provide feedback on both set of proposed changes by July 24, 2024, using the Response Templates 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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

With the deadline for the 2030 Sustainable Development Goals (SDGs) looming, the world is under increased pressure to accelerate efforts and deploy innovative solutions to meet the SDGs. Islamic finance is one of the critical solutions to mobilize funding towards achieving the SDGs.

With more than 30 years of experience, Josephine Su Han Phan provided assurance and advisory services to clients in various countries on their IT systems, internal controls, and financial processes before retiring as a Partner at PricewaterhouseCoopers Malaysia. She has worked in financial statutory audits, IT governance, internal and external IT audits, information security, IT risk and regulatory compliance, as well as IT and operational due diligence.

Mrs. Phan is currently a non-executive independent director on the board of directors and is involved in board committees for two publicly listed corporations in Malaysia. She has previously been the President of CPA Australia (Malaysia Division), Vice President of Information Systems Audit and Control Association (Malaysia Chapter), Member of the Malaysian Institute of Accountants (MIA) Auditing and Assurance Standards Board, Member of the MIA Disciplinary Appeal Board, and Member of the CPA Australia Board Nomination Committee.

Mrs. Phan is a member of both the MIA Education Board and the MIA Digital Technology Implementation Committee. She contributes as a panel member to the evaluation of local universities' accounting degrees for accreditation by MIA.

Mrs. Phan graduated from Monash University (Melbourne, Australia) with a Bachelor of Economics in Accounting and Computer Science. She is a Fellow Certified Practicing Accountant (CPA Australia) and a Chartered Accountant (MIA).

The International Federation of Accountants (IFAC) has released a new publication setting out four key areas where accountants need to update their knowledge to meet the growing demand for high-quality sustainability-related information. Equipping Professional Accountants for Sustainability: What's New and What Hasn't Changed speaks to the vital role accountants play in producing reliable sustainability-related data, reporting and assurance, as well as the importance of education and training in ensuring professional accountants are able to meet society’s needs.

Much of what accountants already do is transferable to sustainability; however, new topics and challenges require new ways of thinking and working. The framework aims to help professional accountants as well as professional accountancy organizations close any gaps between known and needed technical expertise, business acumen, behavioral competence, and ethics and professional values.

The publication was developed following previous sustainability and education research as part of work to revise the International Education Standards and with the support of the IFAC International Panel on Accountancy Education.

The publication is available on the IFAC website and complements IFAC's existing resources on sustainability, including webinars, podcasts, and publications, all of which are available on the IFAC Knowledge Gateway.

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

About the International Education Standards
The International Education Standards (IESs), issued by the International Federation of Accountants, set forth the principles that professional accountancy organizations should follow to build a national accountancy profession that is fully capable of fulfilling the complex demands economies and societies place on it. The IESs are authoritative and are used by IFAC member organizations when setting education requirements for professional accountants and aspiring professional accountants.

This report is a tool for learning and presents best practices for supporting the accountancy profession’s development in emerging economies. It highlights what some countries have overcome in times of disruption and conflict to put the interest of the public first and establish a sound accountancy profession. As many parts of the world face fragile identifiers, pandemics, violence, and more, the profession is stepping up to tackle these challenges.